Norway’s Oil Fund to Sue Volkswagen

Norway’s $850 billion oil fund is meaning to sue Volkswagen AG over its emission-cheating scandal that caused a recall of 11 million cars in the previous year.

The world’s largest sovereign wealth fund stated on Sunday that it plans to join the class-action lawsuits in Germany against the automaker, anticipated to be filed in the coming weeks.

Marthe Skaar, the fund’s spokeswoman said: “Norges Bank Investment Management intends to join a legal action against Volkswagen arising out of that the company provided incorrect emissions data.” The NBIM is assessed to have suffered big losses on its stake on VW after the scandal—a total of 4.9 billion crowns in the fund’s second quarter.

Skaar also added, “We have been advised by our lawyers that the company’s conduct gives rise to legal claims under German law. As an investor it is our responsibility to safeguard the fund’s holding in Volkswagen.”

The Norwegian wealth fund recently urged U.S. oil companies Exxon Mobile and Chevron to do more to report on climate change risks as well.

VW confessed that it had used sophisticated secret software in its cars to cheat exhaust emissions tests. This scandal led to the biggest earnings lost in VW history in 2015, prompting the company to set aside $18.2 billion to cover the costs.

“Something this big doesn’t just go away quickly and the costs are spiraling,” Joe Rundle, head of trading at ETX Capital, mentioned in a note. “And if the Norwegian fund is suing VW because the company’s actions led to losses on its investment, then it could open to door for other shareholders to seek redress.”

VW reached an almost $10 billion contract with the U.S. government in April to buy back or repair about a half million of its diesel cars and establish environmental and consumer compensation funds.

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Amazon to pull off digital wallet in India

After being named as the most trusted online shopping brands in India, Amazon announced its plan to create its very own digital wallet in the  country.

Amazon wants to build its own digital wallet to help its restrict access to customer data in the company’s ecosystem and monetize customer insights, the spokesperson of Amazon clarified.

In a statement released by the director of Amazon payment, Srinvas Rao, he said that the company will invest more on building the capabilities to attain their goal. He explained that developing a trusted, frictionless and ubiquitous payments ecosystem is seen to be critical for their customer-centric philosophy.

Initially, the e-commerce giant expressed its intention to land on online payments business as one of its domestic rivals in India had ventured in this sector already . Prior to this, Amazon purchased Emvantage last month. Emvantage is an online payment gateway in India.Similarly, the company’s digital wallet has been in operation in the United States since 2014, however, it was  temporarily closed for six months due to some reasons.

In terms of online payments, the e-commerce company has been looking at multiple acquisitions and it has been tying to figure out what it needs to do, a person knowledgeable about the issue said.

According to an expert, around 15 percent of e-commerce shipments can result into returns as cash-on-delivery (COD) still covers most of the Indian e-tailing transactions in India. During the last quarter of 2015, the number of digital wallet transactions reached 153.11 million compared to the 65.96 million in 2014.

At the moment, Amazon India caters its customers through gift cards as prepaid instruments powered by the QwikCilver Solutions based in Bengalaru.  Speculations said that the e-commerce may acquire the services of QwikCilver in developing its digital wallet system.

Meanwhile, in a survey conducted by TRA (Trust Research Advisory), Amazon was named as the most trusted online shopping brand in India. “When brands display creativity, they demonstrate an ‘intellectual’ ability to deal with the future better,” stated by TRA CEO N Chandraouli.

A representative from TRA told the press that Amazon has 36 percent trust pie out of the 2,500 respondents from 16 cities of India. Amazon is followed by Snapdeal and Flickart. Ebay, Shopclues, Naaptol and Myntra belonged to the top ten trusted e-shopping brands as well. Samsung mobiles was named as the most trusted brand in India.

Amazon’s recent business venture

In other news, Amazon is set to open its newest brick-and-mortar bookstore in San Diego confirmed by Amazon’s spokeswoman Sarah Gelman. The bookstore  is already the second physical bookstore of Amazon in the region.

Aside from the bookstore, Amazon plans to open another  pick-up location in Ohio. The site will be called Amazon @Akron and will be located at East Exchange Street. Aside from the general public, Amazon@Akron targets the students from Univeristy of Akron.

Amazon’s recent rating and figures

Amazon traded lower in the session earlier at $5754.14, 0.41 percent drop. The stock opened at $581.07 with a session high of $581.40 and a session low of $571.06. Currently, the e0commerce juggernaut has a market capitalization of $269.7 billion and a price earnings ratio of 463.77.

The company has a consensus average rating of Buy from from forty-one stock analysts and a consensus price objective of $720.45. It has a 52-week high of $696.44 and a 52-week low of $365.65. Amazon has a 200-day moving average price of $584.70 and a 50-day moving average of $553.40.

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Alibaba shares edge higher, declares buying activities

Alibaba edged higher in the trading session earlier by 8.88 percent to $66.30, an increase of 5.41. The biggest Chinese e-commerce company has a market capitalization of 169.4 billion Chinese yuan. The stock opened at $64.42 with a session low of $64.04 and session high of $66.89.

Around 21,735, 387 shares of the company were traded on the session while its price earnings ratio is 16.26. The company has a one-year low of $57.20 and its one-year high is $95.06. Currently, the stock has a 500-day moving average price of $69.55 and a 200-day moving average price of $73.06.

The e-commerce company gained $5.33 billion as reported from their quarterly earnings report beating the expected revenue of the analysts of $5.02 billion. Similarly, the firm surpassed the expected earnings per share of the analyst when it disclosed $0.98 EPS for the said quarter.

Alibaba gained an average rating of Buy from thirty eight analysts while its average objective price is $93.92. On the other hand, ICON Advisers purchased 5,1000 shares of the company which gave the institutional investor a total of $1,215,000 worth of shares.  Other hedge funds raised their positions in the e-commerce company as well. For the fourth quarter, Private Asset Management, Diwa SB Investments and River & Mercantile Asset Management are just some of the investors which boosted their respective positions in Alibaba Group Holding.

Alibaba surprised the market when it announced its buying activities recently. The company confirmed that it has bought 32.9 million shares of Groupon which created an anticipation for a possible full acquisition in the long run.

According to the filing extracted from the Securities and Exchange Commission, the Chinese e-commerce giant bought a total of $101 million shares to Groupon or around 5.6 percent stake.

“We bought a very small minority stake in Groupon in order to share ideas between U.S. and China markets. This is a passive holding and if Groupon management would like to exchange experiences with us, we are prepared to share,” the spokesperson of Alibaba said.

“Alibaba has a reputation as a long-term holder, and we’re pleased that they take the same view of Groupon’s opportunity and execution as we do,” Groupon told the media.

 

A market analyst explained that this might be one of the strategic plans of Alibaba to slowly extend its market in the United States. He mentioned that the Chinese e-commerce company doesn’t want to have their own operations, so they are investing in other companies to help them learn and pave the way for more robust activity down the road. Alibaba has acquired stakes from Magic Leap, Jet.com and Lyft as well.

Meanwhile, as the news spread regarding the matter, the shares of Groupon edged higher about 40 percent after its recent jump of 30 percent. The U.S. based global e-commerce marketplace has a market capitalization of $2.3 billion and focuses more on its travel section and keep its traditional online shopping platform. It has slowly climbed after the drastic drop of 60 percent the previous year.

In other news, Temasek Holdings Pte has tied up with Alibaba as part of its plan to widen the investment of the company in the industries serving the middle class and on the illustrious technology of China. The Investment firm traded about 548, 769 American Depository Receipts of Alibaba. Temasek has bought $50 million of Alibaba’s shares on March 2011.

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Prices of Oil Drop as China Stocks Crises Get Worse, Merchants Hedge for More Declines

On Wednesday, oil futures declined once again as concerns over the Greek debt crisis and China’s stock market trouble exceed the unexpected U.S index drop, and traders foresee further declines

Front-month Brent crude was down by over 6 percent earlier this week to level seen last April and it was 38 cents lower at $56.47 per barrel at 0452 GMT.

With a decline of 35 cents at $51.98, U.S. crude is lower by more than 8 percent for the week.

Since the beginning of July, open interest in options to sell U.S. crude $50 per barrel has declined by almost 15 percent. On the other hand, those to sell at $45 per barrel edged higher at 12.5 percent.

CHINA’S STOCKS CRISIS

China’s stocks declined further on July 8 in an intensifying crisis in which China’s Securities Finance Corporation stated that it will be providing liquidity to calm the “panic,” as over 500 Chinese-listed firms stopped trading.

CS1300 index of China has lost its value by a third since June in the steepest downward correction since the global crisis in 2008, obligating China’s central bank to claim that it will provide support security in the stock market and cover against systematic and regional financial risks.

HONGKONG AND SHANGHAI BANKING CORPORATION

On Wednesday, Hongkong and Shanghai Banking Corporation cut its 2015 growth gain for Asia excluding Japan to 6.3 percent from 6.5 percent.

“Things aren’t exactly going according to plan. The sharp drop in crude prices, policy easing and stabilizing demand… were supposed to give Asia a little breather over the last couple of quarters. Instead, local demand-whether construction in China, auto sales in Indonesia or real estate transactions in Taiwan – continues to slow.” HSBC added

GREECE’S DEBT

Greece’s problem with its debt also affects the commodities market. Creditors gave Athens until the end of the week to come up with reforms, in exchange for loans that will keep the country from being kicked out of the euro zone.

With the crisis in China’s stocks and Greece’s debt, huge change in the world’s stock market is expected to happen. The basic commodities such as oil and precious metals are affected and may experience volaility simultaneously. If you need some help in starting with your trading career, just visit our official website TradingBanks.com and open a live account. Let our trustworthy, professional brokers handle your transactions. TradingBanks reviews not only news on commodities, but forex exchange, stocks, and technology industry as we

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EUR/USD Almost Unchanged as Focus Turns to Greek’s Referendum

Euro remained steady against the greenback as investors stayed cautious ahead of the incoming Greek referendum on whether to accept the terms proposed by its international creditors or not.

EUR/USD hit 1.1100 during late Asian trade and subsequently stabilized at 1.1093. The forex pair were likely to find support at 1.1032 (the low of July 1) and resistance at 1.1171 (the high of July 1).

Hopes to reach a deal between Greece and the euro zone were quashed on Wednesday after Greek Prime Minister Alexis Tsipras advised voters to reject the terms of an international bailout deal.

Greek voters are expected to decide this coming Sunday on whether or not to accept the terms suggested by institutions, including the European Central Bank, the International Monetary Fund and the European Commission, who are managing the country’s now-expired bailout.

Tsipras said that a vote against the proposals would be giving him a stronger authority to agree a third bailout Greece’s creditors. Conversely, European leaders said the referendum is definitively a vote on whether to stay in the euro zone.

Greece became the first developed country to default on the IMF after a second bailout was reached last June 30.

The U.S. Commerce Department reported last Thursday that factory orders declined 1.0% in May, in contrast to expectations for a 0.5% decline.

On the other hand, the Labor Department reported that the economy added 223,000 jobs last June, compared to the expected 230,999 job growth, despite the fact that the unemployment rate declined to 5.3% last month from 5.5% in June.

Data also showed that the total number of individuals filing for initial jobless benefits in the week that ended on June 27 increased by 10,000 to 281,000, compared to the expected decline of 1,000.

Everyone is keeping a close eye on the incoming Greek referendum this Sunday as the results will affect the global financial markets. TradingBanks.com will follow the updates regarding the Greek referendum. TradingBanks reviews commodities, stock market and technology industry to help you with your trade.

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All Eyes on Greece’s July 5 Referendum

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Euro Edged Higher on Signs of Progress in Greece Debt Deal

Greek Government Disagrees with Creditors’ Proposals

Euro Slips Lower After Greece Default

As confirmed by the International Monetary Fund, Greek government failed to repay the €1.6 billion debt last Tuesday. IMF said that Greece can only obtain further funding after the debts are settled. Last Tuesday, Greece asked for a last-minute extension, which the fund said will consider “in due course.”

The default by Greece will add to fears over the country’s fuel and wealth doubts over the condition of Greek banks and the assets used for European Central Bank loans.

Yesterday, the Greek government requested a debt restructuring and new two-year bailout program—the country’s third in five years. Conversely, the newest proposals occurred too late to stop Greece’s existing bailout agreement from expiring.

Euro zone finance ministers held the talks shortly on Wednesday to discuss the recent Greek proposals but German Chancellor Angela Merkel ruled out additional negotiations until after Sunday’s referendum in Greece.

Greek Prime Minister Alexis Tsipras called for a sudden referendum to be held on July 5 with regards to the terms proposed by lenders for extending the country’s bailout. European leaders said the referendum is about the vote on whether to remain in the euro zone.

EUR/JPY was a bit changed for the day at 136.47, while the EUR/GBP declined by 0.2% to 0.7886.

Meanwhile, the dollar is slightly higher against the yen, with USD/JPY edging up by 0.11% to 122.63.

A report from the Bank of Japan last Wednesday explains that the outlook among large manufacturers climbed in the three months to June, implying that the economic recovery is gaining grip.

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Oil Retreated Worldwide, Analysts Point to Greece Debt Default

Price of oil dropped on Monday, tracking a sell-off in global equity markets and the euro due to concerns over a Greek debt default.

Brent North Sea crude for August delivery shed $1.71 to trade at $61.55 per barrel in London midday trade.

Investment analyst Daniel Ang of Phillip Futures said that the weakening euro “could see crude prices continue to drop, similar to what we have seen at market open.”

A stronger greenback makes dollar-priced crude more expensive for buyers holding the European single currency, reducing demand.

Meanwhile, dealers are waiting to see if major world powers and Iran can close a deal in curbing the nuclear program of Tehran by the end of June. This move will allow Western powers to lift sanctions that will result to more Iranian crude flowing into the already overstocked international market.  

At the talk in Vienna, a senior U.S official said that there was no chance of nailing down the accord by today, but admitted “it’s fair to say the parties are planning to stay past to keep negotiating.”

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Alibaba Affiliate Launches Online Bank despite Obstacles

Alibaba Group Holding Ltd’s financial affiliate launched Internet bank MYbank on Thursday, aiming for small and medium-sized Chinese enterprises that had a hard time obtaining credit from major financial institutions.

Alibaba-linked Ant Financial Services Group owns 30 percent of MYbank which has 4 billion yuan ($644 million) of registered capital and will propose loans of up to 5 million yuan, which is equivalent to $805,503.

An Ant Financial spokeswoman said it’s only qualified to take in deposits when regulators approve a facial recognition technology that would allow its customers to remotely access bank accounts.

            According to the Executive Chairman of MYbank, Eric Jing, “MYbank is here to give affordable loans for small and micro enterprises, and we are here to provide banking services, not for the rich, but for the little guys.”

MYbank’s target clientele means it will pose instant threat to China’s big state-owned lenders, who have witnessed deposits dissolved by Alibaba-related wealth management product Yu’e Bao. This wealth management product is China’s biggest money-market fund.

Credit conditions are strongly applied for SMEs, since banks avoid companies who were worst hit by an economic slowdown. Customers such as farmers and smaller businesses are also avoided by state-owned banks because of the struggles in assessing their credit worthiness and because they have small percent to offer as collateral.

As some analysts think that MYbank would face risk, the analyst of Macquarie, Matthew Smith said, “The biggest risk for them is more than likely going to be credit costs, and will they be able to properly assess the risks? It’s not clear, if they grow too aggressively, potentially the answer would be no.”

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