Posts belonging to Category global economy



Tesla: 1,800 Model 3 reservations a day

The waiting list for Tesla’s new Model 3 is growing fast

Tesla (TSLA) said Wednesday it is now averaging more than 1,800 net reservations each day for its cheaper electric car, following an event last week to hand over keys to the first 30 Model 3 vehicles. Tesla did not provide an updated figure for its total waiting list. At the event last week, Tesla CEO Elon Musk said the reservation number was over 500,000. On a conference call with analysts Wednesday, he clarified the number was actually 455,000, including cancellations.

The strong demand is a mixed blessing for Tesla as it grapples with scaling up production to make good on deliveries for its first mass market car. Tesla said it remains “on track” to hit its production goals. Tesla expects to produce 1,500 Model 3 vehicles in the upcoming third quarter, 5,000 vehicles produced per week by the end of this year and 10,000 per week by the end of 2018.

http://cnn.com…   Thu.,  03  August 2017

Bitcoin and Bitcoin Cash

Orders for bitcoin cash are ‘exploding’

On Tuesday afternoon, bitcoin split into two in an event known as a “hard fork” that has divided the virtual currency’s online community.

Two competing strands of bitcoin emerged after some of its leading backers disagreed on the best way to take it forward.

The price of the cryptocurrency fell by around 4pc to around $2,700 (£2,000) after the fork, while the predicted price of Bitcoin cash rose from just over $200 to about $370, but traders are still unsure what will happen when the dust settles.

http://www.telegraph.co.uk…   Wed.,  02  August 2017

Brexit exodus for Investment banking jobs

70,000 roles may be relocated from the City of London post-Brexit

A banking exodus from London will be costly. International lenders may need to shift as many as 40,000 investment banking jobs to the European Union to maintain activities on the continent after Brexit, according to financial consultants Oliver Wyman.

Banks may also have to pump as much as $50 billion in extra capital into EU subsidiaries “to support new European entities,” analysts at Oliver Wyman said in a report published on Tuesday.

Oliver Wyman is not alone in predicting a banking exodus. The Centre for London estimated last month that as many as 70,000 roles may be relocated from the City of London post-Brexit, while EY last year predicted 83,000 financial services jobs could be lost. Brussels think tank Bruegel made a more conservative forecast of 30,000 jobs lost.

http://www.oliverwyman.com…   Tue.,  01  August 2017

Brexit: Japan’s biggest bank moves investment operations to Amsterdam

Hundreds of MUFG staff could be leaving the UK

Japan’s biggest bank is reportedly set to move its European investment operations from London to Amsterdam because of the uncertainty posed by Brexit. MUFG could move hundreds of its 2,100 London employees to the Dutch capital, sources told the Financial Times.

Other banks are also looking to set up new offices in various European cities because of Brexit. The UK’s withdrawal from the EU is likely to have a significant effect on the financial services industry in the UK – along with numerous other areas – as companies in Britain will no longer be able to operate within the EU framework.

This could potentially block access to clients and significantly interfere with business. Amsterdam is already home to MUFG’s retail and corporate banking operations.

http://www.independent.co.uk…   Mon.,  31  July 2017

Foxconn unveils $10 billion plan to build LCD display plant in US

Trump announces that Apple’s top supplier is building a $10 billion factory in Wisconsin

Taiwanese electronics manufacturer Foxconn Technology Group announced at the White House Wednesday its plans to invest $10 billion to build a massive display panel plant in Wisconsin that could employ up to 13,000 workers but would require up to $3 billion in subsidies from state taxpayers.

“America does not have a single LCD plant to produce a complicated system. We are going to change that,” Foxconn chairman Terry Gou said at a news conference. “It starts today with this investment in Wisconsin.”

Foxconn is a major supplier of Apple iPhones and other Apple devices and comes a day after President Donald Trump told the Wall Street Journal that Apple CEO Tim Cook promised him the company would build “three big plants, beautiful plants” in the U.S.

The Wisconsin-based Foxconn plant will focus on display panels used in televisions and other devices. Last year, Foxconn bought Japanese electronics maker Sharp Corp.

http://www.usatoday.com…   Thu.,  27  July 2017

US/China trade war

Trump challenging China’s industrial policies

The top U.S. trade negotiator said late on Tuesday that President Donald Trump is determined to challenge China’s use of unfair subsidies and “non-economic” industrial policy to build up export industries that are costing American jobs.

U.S. Trade Representative Robert Lighthizer, in a rare media interview, said that the Trump administration would work to hold China’s practices to the rules of the World Trade Organization, an organization that he has criticized for being ineffective in enforcing fair trade.

Speaking on the syndicated “Kevin McCullough Radio” conservative talk show, Lighthizer said there was “no question that China has an industrial policy that is designed to create jobs and wealth in China.”

http://www.reuters.com…   Wed.,  26  July 2017

Oil price down

OPEC faces ‘mission impossible’ in sustaining oil prices

IHS Markit’s Victor Shum predicts Brent crude prices may settle around mid to high $40s per barrel as OPEC’s compliance to production cuts falls.

http://www.cnbc.com…   Mon.,  24  July 2017

Morgan Stanley beat Wall Street’s profit expectations

More trading revenue than the rival Goldman Sachs

Morgan Stanley beat Wall Street’s profit expectations on Wednesday, reporting gains across most of its businesses and producing more trading revenue than rival Goldman Sachs Group Inc, a rare feat. The sixth-largest U.S. bank by assets reported an 11 percent rise in second-quarter profit, generating more revenue from giving corporations advice, underwriting securities, trading equities and managing customers’ money.

The one dark spot, bond trading, fell 4 percent, much less than at Wall Street rivals that reported earnings in recent days. The $1.3 billion in revenue from that business topped Chief Executive Officer James Gorman’s $1 billion quarterly target and beat Goldman’s $1.2 billion.

Morgan Stanley shares jumped 3.9 percent to $46.95 in morning trading.

http://www.reuters.com…   Thu.,  20  July 2017

Netflix profits up 56%

Original content splurge pays off

A year ago Netflix added more than 130 countries to its service. On Wednesday, it announced a 56 per cent rise on profits and a global customer base of 93.8 million people. Netflix added a record 7.05 million new customers in the three months to December 31, 2016, beating its forecast of 5.2 million for the quarter. The split between international and US members is also narrowing (Netflix added 5.1 million in the quarter) bringing the total to 44.4 million – or more than 47 per cent of its total membership.

A lot of that success is down to investments in original programming. Netflix spent $5 billion (£4 billion) in 2016 on shows such as The Crown, Luke Cage and Stranger Things. It produced 600 hours of original programming in 2016, which it says will increase to 1,000 in 2017. Budgets for original shows will be increased to $6 billion to cope with the extra demand, Netflix said.Annual revenue in 2016 was $8.83 billion with a profit of $186.7 million. Quarterly profits were up 56 per cent year-on-year to $67m. The better-than-expected results sent Netflix’s share up eight per cent in after-hours trading.

http://www.wired.com…   Tue.,  18  July 2017

Legal marijuana, a very profitable business

Nevada sold out of legal marijuana so quickly, the government used a ‘statement of emergency’ to bring in more weed

On July 1, Nevada locals and tourists visiting from out of state waited hours in line in triple-digit temperatures to become the first in the state to purchase legal recreational marijuana. Less than two weeks later, the 47 retailers licensed to sell the drug are running out of supply. The Nevada Tax Commission, a subsidiary of the state Department of Taxation, has passed a new regulation to address the shortage in a unanimous vote.

The commission found that the current pool of stores licensed to distribute marijuana is insufficient to support the market. It will reopen applications and allow dispensaries previously operating in the medical marijuana program to vie for a spot in the recreational market. The regulation come as a response to a “statement of emergency” issued by the department and endorsed by Governor Brian Sandoval late last week.

http://www.businessinsider.com…   Fri.,  14  July 2017