EconomyVN - After months of negotiations, US Media Verizon Group officially acquired Yahoo.

Verizon acquired Yahoo for $4.8 billion

After months of negotiations, US Media Verizon Group officially acquired Yahoo, which is a famous multinational technology company including chat services, email, and portal Yahoo search, via a takeover deal costs $4.8 billion. This merger marks the end of a 21-year history of the existence of Yahoo. This process is expected to be completed early next year.

The global M&A value can reduce $1,600 billion if Brexit negotiation delays.

According to the latest report of the law firm Baker & McKenzie, the value of the business mergers and acquisitions (M&A) on a global scale can be reduced to $1.600 billion in the next 5 years, if UK does not soon negotiate the conditions to leave the EU (Brexit). But experts said that the consequences of Brexit will focus on the UK and Europe, will not entail a new financial crisis.

US: Second quarter economic growth lower than forecast

The US Commerce Department said its second quarter GDP was only 1.2%, lower than the experts' forecast of 2.6%. The main reason was that the US enterprise stopped new investments in production. Expenditure on the construction or purchase of equipment of enterprises continued to decline. Many predict that, if the US economy is still sluggish, the Fed will be difficult to raise interest rates this year

Number of flight booking to France fell by more than 15% after the Nice terrorist

The number of travelers booking flights to France in two months fell by 16% after the horrific terrorist attack in Nice on 14th of July. This is the latest survey result issued by ForwardKeys travel company. Particularly, in Nice - the top tourist city, the number of tourists are expected to drop to 20% over the same period last year.

Thong Le

Published in News

European banks amount to spend to maintain operations in the UK will rise sharply when UK left out of the European Union (EU), also known as Brexit, according to a study by Boston Consulting Group (BCG) was quoted by the Financial Times posted.

Specifically, according to BCG, European banks will have to spend more to 30-40 billion euros in the UK subsidiary to maintain operation after Brexit. So it means operating costs of European banks in the UK each year will increase from 8% to 22%. 

The costs increase too high so more likely will lead to no less the Bank would cease some operations in Britain. Certainly, the foreign banks will encounter a lot of difficulties during the late Brexit by previous regulations, just they have a license to operate in one of the 28 member countries, they will have the freedom to operate in all the other Member States.

Hitherto, the focus of the attention of public opinion still is Bank of America, because they often consider London as a gateway to Europe. However, BCG's research report focuses on about 60 European Bank currently having one or more branches in the UK, included some of the most prominent names such as Deutsche Bank, Commerzbank, BNP Paribas, Santander, Societe Generale or some small banks like Erste, Novo Banco or Piraeus.

"Everybody says much about the Bank of America but in fact, European banks will impact more severely. In fact, Europe is not too important to the American Bank because it brings from 20 to 30% of their profits. But with European banks, UK is very important because with some banks sometimes 70% of their business activities currently housed in Britain", one of the senior researchers at BCG, Mr. Philippe Morel said.

Late Brexit, the first thing that European banks will need to do is apply for the license to operate in the UK, they had not thought of this for decades. In addition, they will also have to be bound to increase capital at the request of the governing body of the British banking industry, just like what happened in the United States.

Activities of the European Bank in Britain will be divided into operations in the UK and in Europe. As the calculations of BCG, the only German banks have to add about 10 billion euros and at least will have to increase capital by 10 billion euros. For the EU-wide banking industry, they will need to add at least 30 to 40 billion euros.

Tonny Le

Published in World economy

EconomyVN - In wednesday's trading session, crude oil prices on the US market dropped to the two-month low after new data showed that gasoline stocks and other energy products increased by US record highs, according to the Wall Street Journal updates.

In recent weeks, WTI light sweet crude price in the market fluctuated in the range from 45 to 50 USD/barrel and it has many gains because investors expect gasoline stocks fell.

However, figures released by US Energy Information Administration (EIA) announced on Wednesday that while crude stocks fell slightly, the reserve of gasoline and other energy products such as diesel hike, in the recent week rose 7.1 million barrels to 1.38 billion barrels, a record high in weekly EIA  26-year data.

Notably, stocks of gasoline and energy products rose too sharply at the time of peak consumption of Americans as well as the summer has just started. It showed the oil excess throughout from 2014 to the present has been producing various kinds of finished products.

On New York market, light sweet crude August delivery WTI fell $2.05 or 4.4% to $44.75/barrel - the lowest level since day 10th of May, 2016.

On London market, Brent crude oil futures fell $2.21 or 4.6% to $46.26/barrel.

Also on Wednesday, gasoline August futures fell 3.6%, diesel prices fell 5.6%, the minimum since May, 2016.

Many analysts warn that in some locations, storage space for refined products could fill up. When storage tanks run out of room to store products, producing companies can reduce strongly to attact more buyers.

"We have very little space left on the East Coast. It's going to be spilling over the top of the tanks. We're marching toward a crisis" vice director at Herbert J. Sims & Co., Donald Morton said.

On the same day, International Energy Agency (IEA) reported that stockpiles of crude oil and energy products of developed countries in the world rose to a record high in May, 2016 and continue to grow again in June, 2016.

IEA identified that supply excess will continue to grow strongly and put tremendous pressure on oil prices. "The tone of the IEA report certainly is quite negative," analyst at Deutsche Bank, Michael Hsueh said.

Minh Phong

Published in Commodities
Tuesday, 12 July 2016 19:43

Crude oil oscillates at 2-month minimum

In Asian trade on Tuesday, crude oil prices compare their losses, while keeping a minimum of two months due to increasing US crude oil drilling operations as well as supply growth elsewhere, firmly defend the view that the rebalance of the crude oil market will take longer than expected.

In New York, August delivery sweet, light crude oil futures lost $0.09, trading at $44.72. September delivery Brent crude costs at $46.25 per a barrel.

In spite of small revenues, both fell more than 3% from the previous week.

Crude oil prices will continue to go down as market participants still concerned the increase of exploration activities in USA will impact crude production.

On Friday, news from industry group Baker Hughes has demonstrated that the number of rigs drilling for oil in the US rose again by 10 to a total of about 351. Factly, the number of rigs is considered as a real sign of future crude output.

Thông Lê

Published in Commodities

Report of the US Department of Labor announced last week, showed that in June the US economy added only 287,000 new jobs, higher than the 175,000 forecast of analysts. Although employment growth was the highest in the past 8 months, but wage growth was not achieved as expected and the unemployment rate increased from 4.7% to 4.9% as more people join into the labor market.

The dollar rose against major currencies immediately after the US employment report was published. However, USD dollard then retreated back as investors said the jobs data in June does not change the Fed's cautious plan on raising interest rates. In 08/July trading session, the US dollar index measuring the strength of the dollar against a basket of currencies fell 0.3% to 96.33 points.

The price of gold on world market also fluctuated sharply following the US job report. Immediately after the non-farm report of America was announced, the price of gold fell by 20 USD to 1.335 USD/ounce. However, the downward adjustment of the dollar helped gold price to rise again. In addition, concerns about the impact of Brexit still spread, this made precious metal prices rebound sharply and closed at $ 1.366/oz, up 7 dollar against the previous closing price and marks the sixth increase week of gold price.

The focus of market this week focused on the results of the meeting of the Bank of England (BoE) announced on Thursday, July, 14th. This is the first meeting of the BOE after Britíh people voted to leave the EU in a referendum held on 23/06. The majority of British people supporting the decision to leave the EU has caused commotion on the world market. The market volatility has peaked when the exchange rate of the British pound against the US dollar fell to the 31-year record low.

The majority of analysts are predicting that the BoE will cut interest rate from 0.5% to 0.25% in this session, but there are people who still believe that this will only happen in August. The recent political arena in England is highly volatile, policy makers at the Bank of England may step into the period of remaining policy until the claims concerning Brexit from government are formally launched. If the BoE cut interest rates, the pound will continue falling and set new lows. In this case of no action from this agency, GBP/USD will see a bounce back from the 31-year low.

CURRENCY

BUY

SELL

TARGET

STOP LOSS

Gold

 

1372

1356

1380

EUR/USD

 

1.1090

1.1010

1.1130

GBP/USD

 

1.3030

1.2880

1.3110

AUD/USD

 

0.7580

0.7500

0.7620

USD/JPY

 

101.00

100.20

101.40

 

Published in Trading strategies

In Wednesday's trading session, oil prices rose along with stock market, many commodities and other currencies, according to the Wall Street Journal.

On New York market, light sweet crude WTI futures in August, 2016 rose 83 cents or 1.8% to $47.43/barrel. On London market in the same period Brent prices rose 84 cents or 1.8% to $48.80/barrel.

According to WSJ's analysis, since British vote for leaving the European Union (EU), the oil price usually fell amid investors sold strongly stocks and commodities to buy these assets considered as safe such as gold, US dollar.

However, when this trend has changed, oil prices rose along with the stock market and other commodity prices, this happened during Wednesday session.

The stock market rose because new signs showed that the US economy is growing well. Institute for Supply Management (ISM) announced index of non-manufacturing sector in June, 2016 increased to the highest level since November, 2015. S&P 500 rallied immediately after that news.

During yesterday's session, dollar and gold rose, but gains has slowed as trading time gradually ended. Chairman of Excel Futures fund, Mark Waggoner said in Wednesday he did not receive more orders to buy gold but they get a lot of orders to buy other goods, which suggests that investors' demand for gold temporarily cooled.

"According to my forecast, the impact of Brexit coming to an end, the market will pay more attention to other factors in near future," said Mark Waggoner.

Market sentiment is also more stable, British pound after falling to 31 year low has increased slightly, US dollar depreciated. USD index fell 0.2% on Wednesday.

Bank of England (BoA) announced officially to decrease the compulsory reserve rate to encourage banks to extend credit for UK businesses.

Experts forecast US crude stocks fell 2.3 million barrels last week, though still down but this rate is lower than the decline of 3.4 million barrels in the same period last year.

According to the US Energy Information Administration (EIA), compared with the same period, average of oil production in the US fell from April until now. The average reduction is 800 thousand barrels/day. This is considered as a possible factor supporting oil prices.

According to Mr. Fadel Gheit, senior analyst at Oppenheimer & Co funds, one other supporting factor is that level of 40-50 USD/barrel is not enough to encourage energy companies to boost production again, this possibility can only occur when oil prices stabilized above $50/barrel. Therefore, oil prices would have to rise above $ 50/barrel, then could decline as companies take advantage of expanding production.

Thông Lê

Published in News

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