Friday, July 22, 2016
Bids for Yahoo which is headed by CEO Marissa Mayer, were due on Monday, and expert says that Verizon has long been the front-runner.
On a report on Bloomberg News, it said that Verizon is nearing a deal to buy the core business of internet company Yahoo. Verizon is negotiating the amount that they will pay which is close to $5 billion for Yahoo’s core internet business after emerging as the lead suitor in the final round of bidding. While some people said that that Yahoo worth as much as $10 billion for its core business (excludes its stake in Alibaba and Yahoo Japan) bids so far came in below that.
Among those believed to also have submitted final bids for Yahoo were telecom giant AT&T, Dan Gilbert, the founder of Quicken Loans and owner of the Cleveland Cavaliers NBA team, supported by Warren Buffett's Berkshire Hathaway. Private equity firm TPG has also been among the suitors that were in the final final round.
Verizon is due to report earnings next week on Tuesday, July 26, so that’s a logical day for the news to come out. When Verizon executive were asked for comment on reports about this possibility of the deal, all they say is “watch this space”.
“No comment at this time,” Caroline Campbell, SVP of brand and communications at AOL, said in an emailed response.
Later, a report from Recode noted that Verizon, which had originally thought to be offering around $3 billion for core assets, might have bumped its figure up to about $5 billion.
The technology and commodity stocks and in the driver seat and they are leading the S&P 500 Index for the first time in this last two months. Computer and software companies were the best group in this week trade they powered the benchmark gauge for American equity to a record and its fourth straight weekly advance.
The S&P 500 finished at a new record high close on Friday with the broader market gaining for a fourth week in a row as stocks bounced back from Thursday’s correction. The S&P 500 index rose 10 points, or 0.5%, to end at 2,175 for a weekly gain of 0.6%. The Dow Jones Industrial Average gained 53 points, or 0.3%, to close at 18,570, adding 0.3% for the week. The Nasdaq Composite Index advanced 26 points, or 0.5%, to finish at 5,100, closing the week 1.4% higher.
Wednesday, July 13, 2016
Asian equity markets continue making gains and they are within reach of their 2016 highs on Wednesday as the anticipation of solid U.S. growth and likelihood that Japan may consider an aggressive form of policy easing to boost their economy brightens investors outlook despite the damaged done by uncertainty from Brexit.
The Nikkei Stock Average was up 1%, paring earlier gains, while the yen changed tack to trade 0.6% stronger against the U.S. dollar. Earlier Wednesday, the Nikkei had recovered all its losses from before the Brexit vote when the index was up 1.6%.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose as much as 0.4% to 427.83, just below its year-to-date high of 428.22 hit on April 21.
Australian stocks added 0.5% and South Korea's Kospi .KS11 rose 0.6% New Zealand shares .NZ50 inched down 0.1% but were near a record high struck Tuesday. Shanghai .SSEC advanced 0.4%.
"A while ago, everything looked so uncertain on Brexit. But now that the UK looks set to have a new prime minister ... that is soothing investor sentiment," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
Britain's interior minister Theresa May is set to take over as prime minister on Wednesday.
Elsewhere, Philippine shares .PSI reached a more than 1-year high and Vietnam .VNI scaled an 8-year peak.
In commodities, oil prices dropped after industry group American Petroleum Institute (API) reported a surprise build of 2.2 million barrels in U.S. crude stockpiles last week.
Brent crude futures LCOc1 fell 1.2% to $47.90 after surging roughly 5% on Tuesday on broad improvement in risk sentiment.
Zinc CMZN3 touched a 13-month high of $2,210 a tonne and nickel climbed to a 10-month peak of $10,670 a tonne CMNI3. Aluminum and copper have also gained.
Wednesday, July 6, 2016
The UK Pound drop below $1.30 on Wednesday amid increasing anxiety about Britain’s vote to leave the European Union that force investors to put their money on safe haven assets.
“Sterling hit fresh lows against all of the major currencies and while there was no news to explain the move, the sharp sell-off sent fresh jitters across the financial markets, driving investors into the safety of the US dollar, Japanese yen and gold,” according to Kathy Lien of BK Asset Management.
At one point of trading the UK pound drop to $1.2798, its lowest level since June 1985, before it recovers. The British currency dropped 1.0% against the euro at 85.88 pence.
The euro strengthened slightly against the dollar, up 0.2% at $1.1097.
“The eurozone is hardly sheltered from the UK’s troubles and there could be a banking sector crisis brewing in Italy but for now, the greater concern is clearly Britain,” Lien said in a client note.
The dollar was little moved by the minutes of the Federal Reserve’s June 14-15 policy meeting, which showed Fed officials divided over US growth prospects as they kept rates on hold.
Omer Esiner of Commonwealth Foreign Exchange said the dollar stands to benefit from continued aversion to risk, but that the outlook for the Fed leaving rates unchanged through 2016 was likely to keep its upside limited.
“Even upcoming economic data, like the all-important payrolls report for June this Friday, may have a limited impact on the dollar as the Brexit story continues to dominate market focus,” he said.
Friday, June 24, 2016
Britain has voted to leave the European Union which is a historic decision that will have a huge effects in the world. The value of the British pound sunk as financial markets absorbed the news.
Financial institution took a beating as the prospect of a sinking pound eating into the profits of British companies as well as broader worries about the financial sector have battered the shares of the British banks HSBC and Standard Chartered.
In Hong Kong, the Hang Seng index are down by 5% pulled down by stocks in banks, which had fallen more than 6%.
But HSBC’s stock slipped almost 12%, and Standard Chartered’s plummeted more than 13%. Prudential also saw its shares sink more than 11%.
Shares in Indian and Chinese banks have dropped, too, and Japanese bank shares have experienced a rout as the yen has surged.
Morgan Stanley has already said it will consider moving its European headquarters to Dublin or Frankfurt in the event of a vote to leave. Markets are a factor in the cost of potentially streamlining operations in Britain and shifting operations to other parts of Europe.
The United Kingdom voted to leave the European Union, a decision that sent global markets into a tailspin early Friday.
The margin of victory was 52% to 48%.
It is the first departure from the alliance since the EU was formed 43 years ago. It could prompt other member nations to follow the U.K.'s lead and reverse a decades-long drive for European unity.
Monday, June 20, 2016
With the positive news that the polls are leaning towards Britain remaining in the European Union, the United States stocks sharply rose.
Asian stocks also traded higher and indexes in Europe were up as the latest opinion polls and betting markets suggested it was more likely that Britain would stay in the E.U. Britons vote in a referendum on the matter on Thursday.
The British pound rose sharply, and investors dumped ultrasafe assets like American government bonds, gold and utility stocks, sending those prices lower. Machinery and consumer companies jumped, and energy companies rose with the price of oil.
- Standard & Poor’s 500-stock index up by 12.03 points, 0.6% to 2,083.25.
- The Nasdaq composite up by 36.88 points 0.8% to 4,837.21.
- The Dow Jones industrial average up by 129.71 points, 0.7% to 17,804.87.
- Boeing gained $2.93, or 2.3% to $132.75
- Honeywell up by $1.14, or 1% to $117.06.
- General Electric up by 23 cents to $30.83.
- Amazon up by $7.62, or 1.1% to $714.01,
- Priceline up by $32.72, or 2.5% to $1,341.96
- Nike rose 65 cents, or 1.2% to $54.36.
- Benchmark United States crude oil rose $1.39, or 2.9% to $49.37 a barrel
- Brent crude gained $1.48, 3% to $50.65 a barrel in London.
- Chevron up by $1.04, 1% to $102.61.
- Marathon Oil up by $1.32, 10% to $14.48, company agreed to pay $888 million for PayRock Energy.
Bond prices dropped as investors moved money out of ultrasafe assets. The yield on the 10-year Treasury note rose to 1.68 percent from 1.61 percent late Friday.
The FTSE 100 in Britain leapt 3 percent and the CAC 40 in France rose 3.5 percent. The German DAX was up 3.4 percent. Japan’s benchmark Nikkei 225 index surged 2.3 percent. The South Korean Kospi climbed 1.4 percent and in Hong Kong the Hang Seng added 1.7 percent.
In other energy trading, wholesale gasoline added 8 cents, to $1.58 a gallon. Heating oil edged up 5 cents, to $1.53 a gallon. Natural gas rose 12 cents, to $2.75 per 1,000 cubic feet.
Gold slipped $2.50, to $1,290 an ounce. Silver rose 10 cents, to $17.51 an ounce. Copper added 4 cents, to $2.09 a pound.
The pound rose to $1.4684 from $1.4361. The dollar fell to 103.86 yen from 104.21 yen and the euro rose to $1.1305 from $1.1277.
Thursday, June 9, 2016
Oil has recorded near 10-Month high as U.S. crude stockpiles decline, U.S. oil inventories fell 3.23 million barrels last week. It was also affected by disruptions in producing countries like Canada and Nigeria.
Futures were stable in New York, it just recorded an earlier increase of 0.9%, after settling on Wednesday at the highest since July 15. Crude stockpiles dropped by 3.23 million barrels last week to the lowest in two months, the U.S. Energy Information Administration said on Wednesday. A new wildfire prompted Canadian oil producers Cenovus Energy Inc. and Canadian Natural Resources Ltd. to shut production.
Crude has surged more than 95% from a 12-year low in February amid unexpected disruptions and a steady slide in U.S. output, which is under pressure from the Organization of Petroleum Exporting Countries’ policy of pumping without limits. Militant attacks have hobbled production in OPEC member Nigeria.
West Texas Intermediate for July delivery traded 12 cents lower at $51.11 a barrel on the New York Mercantile Exchange as of 9:23 a.m. London time, having risen as much 44 cents to $51.67. Total volume traded was about 20 percent below the 100-day average. The contract rose 87 cents, or 1.7 percent, to close at $51.23 on Wednesday, the highest since July 15.
International Brent crude oil futures hit a high of $52.86 a barrel, and were up 23 cents at $52.74 a barrel at 0700 GMT. U.S. crude hit a fresh high of $51.67 and was up 33 cents higher at $51.56 a barrel.