Showing posts with label Banks. Show all posts
Showing posts with label Banks. Show all posts

2 January 2015

What Happened? 2014 Business News

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Business experienced the usual ups and downs in 2014 but it was the actions of high powered individuals that impacted entire nations.

Politics


Russia suffered severe economic sanctions for it's involvement in Crimea but it was the falling oil price, due to OPEC's decision not to cut production, that was the final blow making the most impact on Russia's oil driven economy along with the Rouple. The US government had a busy year with Ben Bernanke being grilled about the decisions leading to the AIG bailout and politics narrowly avoided another shutdown when a $1.1 trillion bill was signed at the last minute. Protests in Hong Kong's business district nearly crippled the region and ended up costing retailers millions while in South America Argentina defaulted on it's loans for a second time ignoring a US courts ruling.

In the world of taxes Frances ridiculous 75% tax on millionaires was dropped while in the States over 30,000 IRS emails previously thought lost were found regarding the accusation that the IRS was targeting individuals based on their political views. Parts of Europe implemented what was termed the Google tax in an attempt to squeeze more from foreign companies operating in Europe and finally it seems European nations really had it out for Google trying to have the internet behemoth split.

Companies


Some companies probably wished for a quicker end to the year with not one but two high profile incidents, MH370 and MH17, Malasian airlines stock took a massive knock and had to be suspended at one stage. GM was on Capital Hill due to the large number of recalls due to safety issues with their vehicles. The hacking of Sony Entertainment's network caused havoc with confidential documents being released in droves bringing speculation of possible sales of assets while a previously targeted company, Target, faced a lawsuit over last years holiday hacks that saw 110 million customer details stolen. Not everyone managed to escape their fate with more former Madoff aides heading to prison and Uber was in the spotlight after an exec wanted to snoop on a journalist to discredit her work.

It wasn't all doom and gloom with the technology world seeing Alibaba make it's grand listing with the largest tech IPO ever. Apple had an interesting year with successful new products like the iPhone 6 and it's new smart watch which isn't available just yet but it also ran into issues with an Apple employee class action lawsuit and was the unwilling participant in many "die-ins" staged in protest of police brutality. Burger King successfully acquired Canada's Tim Hortons in a move to cut it's tax exposure and minimum wages made the spotlight with Walmart claiming to do away with it.

Banks


Years after they sent the world economy into a tailspin the European Central Banks conducted a health test and found everything to be fine. However things weren't over with banks still facing billion dollar fines from the US and UK for their involvement in the Libor scandal.

JPMorgan faced a class action lawsuit over $10 billion of mortgage-backed securities and finally Barclays faced a suit by the SEC over "dark pools".

31 October 2014

Banks Behaving Badly

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This week saw all eyes on the banking sector with investigations galore. The tech industry also saw some action this week of a less dramatic kind.

Banks


The European Central Bank's health check was a success however the report did say "Banks face a significant challenge as the sector remains chronically unprofitable".

Things only got worse from there with Barclays Bank under investigation for bribing a member of the Saudi Royal Family in order to secure a rare banking license. Deutsche Bank braced itself for a $1bn fine from US and UK regulators for it's part in the Libor and Euribor scandal.

Further afield US prosecutors may reopen investigations into several big banks that were previously probed on suspicion they may have violated agreements under which the institutions settled prior cases against them. US and European banks are also stock piling billions for potential trans-Atlantic settlement of allegations they manipulated foreign-exchange rates.

Technology


The technology sector saw action with Twitter shares taking a tumble over concerns with user growth. Samsung was hammered with profits plummeting 60% due to increased pressure from smartphone competitors.

Facebook on the other hand saw it's earnings almost double on rising ad revenue. but it wasn't all good news with it's latest Acquisition $21.8bn WhatsApp making a loss of $138million. Microsoft ended up cutting 3,000 employees as part of it's larger plan to cut 18,000 staff.

Apple was in the news after one of it's suppliers, GT Advanced Technologies, says a deal with the tech giant went sour forcing it to file for bankruptcy. However it's wasn't all gloom for Apple with it's payment system showing 1 million activations within 72 hours.


9 May 2014

Technology Breaking Records & Banks Breaking Rules

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This week saw Alibaba file it's long awaited IPO bringing China to the technology forefront. Along with that we have the usual banks behaving badly and technology start-ups shaking things up.

Technology Titans


Alibaba filled it's IPO with a $1 billion fundraising target with more to come later. Alibaba's IPO could be the largest technology IPO in history topping Facebook's debut and has been making ripples across Silicon Valley due to Alibaba's immense reach and scale.

Yahoo, which holds 24% of Alibaba, traded 1% higher after Alibaba's began trading. Yahoo managed to amend it's deal to keep more shares with the original deal requiring Yahoo to sell a specified amount of shares when the IPO was launched.

In other technology stock news Apple's shares topped $600 for the first time in 18 months. Apple is now also the second largest online retailer after Amazon.

Banks behaving badly, again


US Attorney General Eric Holder has warned that no bank is "above the law" amid investigations into tax evasion and money laundering. Credit Suisse Group AG is in talks with the US Justice Department to resolve a tax probe which could cost as much as $1.6 billion.

Banks are also being sued on allegations of fixing the gold price. The suits, filed by hedge funds, private citizens and public investors claim the banks used their position to rig the price of gold to the banks benefit.

Start-ups shaking things up


Airbnb has been under governments scrutiny lately with regulators questioning whether Airbnb hosts paid the relevant taxes and in some cases claim they may be violating New York housing laws.

Ride sharing services like Uber and Lyft have hit a snag with insurers insisting drivers pay commercial insurance to ensure passengers are protected.

Public Relations 101


When teenagers are the voice of reason you know you have to rethink your approach. Coca-Cola and PepsiCo have removed a controversial ingredient from their products after a teenager started a petition online.

Target CEO has resigned after continued fallout from when hackers stole credit cards from 70 million accounts over 5 months ago.