London Stock Exchange Wants to Spend 27 Billion USD to Buy Refinitiv

LSE is negotiating to buy Refinitiv Holdings financial data analysis company for $ 27 billion including debt.

According to Reuters, the acquisition comes less than a year after US asset management company Blackstone Group acquired a majority stake in Refinitiv from Thomson Reuters information and media company. In the deal with Blackstone, Refinitiv is valued at $ 20 billion including debt. Thomson Reuters is the parent company of Reuters News, which currently owns a 45% stake in Refinitiv.

LSE said it plans to issue new shares to pay for the deal, which will make Refinitiv’s existing investors become shareholders of the LSE. In the company after the merger, Refinitiv’s current shareholders will hold about 37% and less than 30% of the voting rights. Refinitiv had a debt of $ 12.2 billion at the end of December last year, the result of the acquisition by Blackstone. LSE is expected to take over this debt if it can buy Refinitiv.

LSE said that the possibility of negotiating with Refinitiv is not certain. The source of information revealed if the two sides agreed to the transaction, the agreement will be finalized next week.

Thomson Reuters shares rose 4.5%, reaching a record high in Friday’s session in Toronto, after news of the deal was announced. This stock price has increased 62% since January 2017, when Blackstone and Thomson Reuters announced the Refinitiv deal.

Owning Refinitiv will help LSE expand its information services business – an area that this floor is aiming to become a more stable source of revenue compared to the main activities related to transactions.

LSE operates stock markets and derivative transactions including London Stock Exchange, Borsa Italiana, MTS and Turquoise. The company has a market capitalization of around £ 19.3 billion ($ 23.9 billion) and a debt of about £ 1 billion.

Refinitiv purchases can help LSE reduce the shock from market fluctuations that may occur in the case of Britain leaving the European Union (EU), ie Brexit, without agreement.

The worldwide sports monetary trade allows investors to buy groups like stocks

What could you say if we informed you that you may start to spend money on your favorite sports teams? At the same time as still in early ranges, the global sports monetary exchange (GSFE) is imparting investors and sports enthusiasts alike an possibility to place up actual coins behind their favored professional sports franchises.

Take a look at out AllSportsMarket.com to get began with the global sports activities monetary alternate. In this newsletter, we’ll outline how the global sports economic alternate works, why it’s so specific, and the way it’s some other interesting instance of ways enmeshed finance and sports activities having a bet are.

How Does the GSFE work?
The global sports monetary change is a charming blend of the fundamentals of the inventory marketplace and the concepts of futures bets. Ward and Nicholls aren’t huge sports activities bettors, and that they’ve made no public statements suggesting that they’ve ever dabbled with any sportsbooks. but, the similarities among investing in a team, and having a bet on them, aren’t as large as you might assume. if you want to examine extra about that, examine our article comparing the inventory marketplace and sports making a bet.

The essential principle behind the GSFE is that bettors “very own” a bit little bit of a sports team; via sinking money right into a group’s stocks, an investor certainly has a vested interest in a team.

The essential precept to preserve in thoughts approximately the worldwide sports economic trade is that it’s not a zero-sum recreation; you received’t outright win or outright lose any of your bets. rather, you’ll see increase and decline within the price of the stock you’re protecting.

Most customarily, a group’s win-loss ratio will dictate their quick-time period stock charge. factors a good way to have an effect on a crew’s stock charge are the long-run trades, how robust a crew’s draft is, and possession adjustments.

Business man with group of balls of different sports in hand at stadium

In light of any new information or maybe hunches, buyers can cross long or short on whichever teams they feel are poised for achievement and failure. if you assume the Vancouver Canucks are set to polish inside the destiny, you’ll need to buy inventory in them even as they’re inside the basement of the league. the mantra that every investor lives through is purchase low, promote high!

As with all market, your shares expenses may be suffering from many different factors, from a broader disintegrate of the marketplace to activities specifics to the group you’re preserving inventory in.

At the GSFE, traders can buy, sell, and quick shares of whichever group they preference. There are no regulations on this regard. In essence, buyers are trading in shares in their preferred teams, no special than if they were replacing shares in Apple. Exceptional of all, at the same time as the marketplace continues to be (extraordinarily) small, you don’t ought to pay very huge agents prices.

In fact, the consistent with Ward the GFSE is built upon ” the precise same structure that was used while the ny inventory trade first opened in 1817.” presently, there are over 614 particular shares to be had to purchase.

Every other exceptional feature particular to the GFSE is that on every occasion the crew they’re invested in wins, they’ll get hold of a small dividend.

In case you suppose that all of us can replicate this change, think once more. Ward and Nicholls have locked down 100s of patents, in over a hundred and forty one of a kind international locations. For now, their sports group inventory trade is secure from infringement. Similarly, the global sports activities monetary alternate works intently with the Securities change fee (SEC) to keep to expand their market. Working with a framework and thoroughly unique concept, Ward and Nicholls frequently collaborate with regulatory our bodies to perfect their market shape, and to make sure that their investor’s protection and safety.

Bitcoin Price Is Fluctuating More Than Ever

Over the past few weeks, the price of virtual currency Bitcoin has fluctuated greatly, soaring to nearly $ 14,000 on June 26 before returning to about $ 9,000 on July 2. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value.

According to Naeem Aslam, head of market analysis of ThinkMarkets FX, an increase over the $ 10,000 mark of Bitcoin on June 21 has sent a strong signal to retail investors that Bitcoin has returned. This is the first time this virtual currency has surpassed the price of $ 10,000 since March 2018. Some other virtual money like Ethereum, XRP, Litecoin and EOS also increased, CNN said.

Lennon Sweeting, institutional investor manager for Coinsquare Capital Markets, said major investors are taking advantage of the short-term volatility of the virtual currency. Some big investors are still holding lots of Bitcoin and can have a big impact on the market.

Analysts say that the recent unexpected volatility of Bitcoin has some fundamental causes. According to Aslam, the social network Facebook plans to release virtual currency called Libra is a cause. He said it would not be surprising to see Amazon e-commerce company or other technology and retail giants want to enter the virtual money market.

However, Facebook’s Libra is also controversial, especially when the social network is still addressing the question of turning roles in global elections over the past few years and the spread. of fake news on its platform.

Sweeting said many investors were excited about the effects Libra brought to Bitcoin. However, he stressed that the difference between blockchain and Bitcoin is worth noting. The Libra push is likely to promote the widespread adoption of blockchain but does not mean the same thing for Bitcoin virtual currency.

Football festival, global stock market will fall points?

Trading volume fell sharply

During the 2010 World Cup held in South Africa, many matches were played at the same time as the trading hours of many stock markets around the world. According to ECB statistics, there are 15 large stock markets including: Germany, England, France, Italy, Spain, Denmark, Netherlands, America, South Africa, Argentina, etc., there are 3 points worth Note the following:

(1) In the market of some countries, for every game with a national team (such as England, France) participating, the average number of orders reduced by 45%, the volume of trading shares decreased by 55%. .

(2) The market is affected by the matches. Specifically, after a match, each country’s stock index fell an average of 5%. This reduction was statistically significant at lunchtime after the morning session, and many investors did not pay attention.

(3) The global stock market’s temperature is contrary to the World Cup matches, in more than 20% of the time the games are played, global stocks fall. Investors seem to be willing to spend more money on alcohol and popcorn than focus on price lists during this time.

Another 2007 study also showed that during the World Cup, a defeat of the national team could make that national stock market drop sharply the next day.

Slight increases in the stock market of the winning country

After the World Cup, markets with national teams that have won the championship have always gained points since 1974. The only external case for Brazil in 2002, the rest of those markets rose immediately after that to the average. 3.5% and maintained for 3 months.

The stock market of the losing country lost points

In the Goldman Sachs report, 7 out of 9 stock markets of the losers in the final also suffered a “sharp decline” with an average decrease of 5.6% in the following three months.

Another study, entitled ‘Love for Sport and Profit from Securities’, lists statistics from 1100 matches and stock market yields of 39 countries, showing that each team has a In the qualifying round, the country’s stock market fell 0.5% the next day.

There are no serious consequences for the value of stocks or the country’s economy, but simply the mood of investors affected. That’s why the World Cup defeats have more serious consequences than the European Championship or other sports such as baseball, basketball, cricket, rugby … Especially, the most serious impact in “crazy football” countries like Argentina, Brazil, England, France, Germany, Italy and Spain.

The US market is always down after every World Cup

A study by Israeli experts said the average post-World Cup US stock market plunged 2.6%, calculated over 14 of the last 15 World Cups. This may seem unusual, because Americans prefer rugby football. However, one-third of transactions on the US stock market are carried out by foreign investors. So after every World Cup round, with the number of national teams going up, there are some foreign investors sad.

Movements of stocks are very different on stock exchanges

Statistics on STMicroelectronics (STM) shares traded on Italian and French stock exchanges showed different up / down trends of this stock on both exchanges when impacted by football matches.

Normally, a firm’s stock will have the same direction of increase / decrease on international exchanges. However, in the 2-1 World Cup victory against South Africa, STM shares fell sharply every time South Africa scored but did not happen in the Italian market. Similarly, after Italy lost to Slovakia, STM slumped on the Milan stock exchange, but not in Paris.

Facebook’s “seismic” virtual currency

Facebook, on June 18, said it would release the Libra virtual currency, scheduled for official trading from early 2020. Described as a global financial-monetary infrastructure, Libra was affirmed by Facebook’s leader “not created for the purpose of replacing major central banks”. However, this currency is evaluated by analysts to create a global seismic in the financial industry.

With more than 2.4 billion Facebook users every month, Libra has the ability to change the face of the financial market, according to The Guardian. Bloomberg in the recent article said that if successful, Libra could turn Facebook into a ‘big player’ in the financial industry.

Compared to the rest of the money market built on blockchain technology, Libra has two distinct characteristics: how to manage and operate.

Unlike other virtual currencies that are also based on the Blockchain, Libra is not created by “digging”, but this currency is issued based on a real amount of collateral. Simply put, this digital currency is created in the same way that central banks around the world issue paper money.

In the newly published White Paper, Facebook claims Libra is a “stable currency”, due to its value attached to real assets. Basically, the only way to increase the number of circulating Libra is that users use other currencies, such as US dollars, euros, yuan or yen to buy Libra and this amount is considered “assets.” guarantee “the amount of Libra this person owns.

“Facebook introduced Libra at the moment as a turning point for the company’s operations and the money market,” said Mark Mahaney, an analyst at RBC Capital Markets. “In terms of size and importance, we believe this new financial platform may be similar to the time Apple introduced the IOS operating system for developers more than a decade ago.”

The amount of Libra collateral will be placed in banks or invested in low-risk lucrative assets, such as US government bonds, but the profits are not distributed to Libra owners. used for the operation of this currency management organization, such as funding for research activities or social activities.

This pre-system is also managed by an organization called Libra Association – an independent, non-profit organization based in Geneva, Switzerland. The organization has two main functions: authenticating transactions using Blockchain Libra and managing Libra volumes related to social purposes.

Companies that contribute at least $ 10 million are considered to be founding members of Libra Association, and there are now 27 technology companies that claim to be partners with Facebook, including some big names like Paypal, Ebay, Spotify, Uber, Lyft, Visa, Mastercard …

However, with the influence of social networks of 2.4 billion users, Facebook may face many barriers before bringing Libra to consumers.

According to Bloomberg, the new announcement from Facebook immediately faced opposition in Europe, with a call to adopt stricter regulations.

French Finance Minister Bruno Le Maire said Libra should not be considered a replacement for traditional currencies. At the same time, the head of the French financial agency called on the group of 7 central bank governors to prepare to report on this project right in the July meeting.

“Libra has undoubtedly become a legal currency,” Le Maire said in an interview with Europe 1. “This is an impossible and impossible problem.”

In the context that Facebook is suffering from numerous criticisms of privacy violations, the new move in the financial sector also draws attention from regulators and privacy advocates worldwide. gender. According to The Guardian, the US and UK authorities have expressed concern about the plan to encroach on Facebook’s financial sector.

In May, members of the US Senate Committee on Banking, Housing and Urban Issues wrote to Facebook CEO Mark Zuckerberg asking for questions regarding privacy and regulations. finance.

“It is important to understand how large social platforms use data available in ways that affect the financial life of consumers,” the content of the letter is written. “More importantly, understand how large social platforms use financial data to profile and select target customers.”

Facebook plans to release GlobalCoin cryptocurrency in 2020

Facebook’s virtual money is expected to help users pay across borders safely and at a cheap cost without a bank account,.. .

According to BBC sources, Facebook plans to release its own cryptocurrency called GlobalCoin in the first quarter of 2020, after internal testing later this year. This cryptocurrency will be released in dozens of countries around the world, helping users to make payment transactions securely and at cheaper costs without having a bank account.

To be able to launch, this virtual money will need to overcome many technical and logical barriers. Last month, Facebook’s chief executive Mark Zuckerberg met with central bank governor Mark Carney to discuss the opportunities and risks of issuing virtual currency. Facebook also works with the US Treasury and money transfer companies like Western Union, to discuss legal and operational issues related to crypto.

Facebook plans to release cryptocurrency for the first time at the end of last year. Accordingly, Facebook will partner with banks and brokers to allow users to convert dollars and other legal currencies into virtual currency. ? Facebook is also negotiating with online providers to accept this virtual currency, in exchange for lower transaction costs.

In March, Barclays’ Internet analyst Ross Sandler forecast GlobalCoin cryptocurrency could bring in revenue of up to $ 19 billion by 2021 in Facebook.

GlobalCoin marks Facebook’s second attempt at virtual currency, nearly 10 years later, Facebook Credits – cryptocurrency allows users to buy products on the system of this social network. Facebook Credits was “killed” after only 2 years of operation due to the failure of liquidity.

However, to launch GlobalCoin, Facebook has many problems to be solved in the context of the scandal of user data and regulations from authorities in recent years. The question posed by officials is how Facebook’s cryptocurrency will work and how the company will protect its customers and their personal information.

Information about GlobalCoin helped price many cryptocurrencies on the market increased on 24/5. Bitcoin rose 5% in value, trading at about $ 7,960, Bitcoin Cash and Ethereum copper both rose 7%, and Litecoin increased 11%.

London Stock Exchange Is Ready to Use Blockchain Technology

The stock exchange over 300 years old in the British capital is one of the oldest stock exchanges in the world. In the digital age, the floor is thinking of deploying new technologies like blockchain.

According to CNBC, Nikhil Rathi, CEO of London Stock Exchange, suggested that the blockchain, which is the technology to record data on a distributed computer network instead of focusing, could have applications in the stock exchange in England.

You can certainly visualize distributed ledger technology with applications during the release process. I can imagine the technology used to settle. Rathi said the London boss said that he found many different types of interesting ideas from rival exchanges and would follow up on which ideas the market was most interested in.

For example, the Swiss SIX platform is seeking to launch a platform based on the blockchain to speed up the transaction process, while the Gibraltar Stock Exchange launches a digital version of many securities, such as corporate bonds.

The London Stock Exchange recently bought a minority stake in Nivaura, which announced that they issued the world’s first automated cryptocurrency listed bonds. The floor said they tested the issuance, receipt, and transaction of shares with Nivaura in the managed “sandbox”. However, they did not say whether testing would be implemented in a real environment.

Many financial firms say they see great benefits for the industry from blockchain technology but are separating themselves from pre-coding. The first blockchain was created to make the public ledger for bitcoin transactions. For example, JPMorgan said it would roll its own cryptocurrency into USD and set aside for large payments. JPMorgan CEO Jamie Dimon meanwhile is the critic of pre-coding, calling bitcoin a fraud.

Rathi said that despite his support for competition and innovation in the capital market, some extreme manifestations in pre-coding made him a bit cautious. Cryptocurrency prices plummeted after a dizzying price rise in late 2017, early 2018. Bitcoin once reached $ 20,000 in December 2017, currently priced at $ 5,300-5,400, according to Coinmarketcap.

FIFA World Cup Affects The Stock Markets

According to many years of statistics, the FIFA World Cup has a big influence on the mood of stock investors.

The number of transactions declined sharply

During the 2010 World Cup held in South Africa, many matches were played at the same time as the trading hours of many stock markets around the world. According to ECB statistics, over 15 large stock markets including Germany, England, France, Italy, Spain, Denmark, Netherlands, America, South Africa, Argentina, etc, there are 3 points worth noting:

  • In the market of some countries, every game has a national team (such as England or France) participating, the average number of orders is reduced by 45% and the volume of trading shares is reduced by 55%.
  • The market is affected by the matches. Specifically, after a match, each country’s stock index fell an average of 5%. This reduction was statistically significant at lunchtime after the morning session and many investors were not paying attention.
  • The heat of the global stock market goes against the World Cup matches. In more than 20% of the time the games were played, global stocks fell. Investors seem to be willing to spend more money on alcohol and popcorn than focus on price lists during this time.

Another 2007 study also showed that during the World Cup, a defeat of the national team could make that national stock market drop sharply the next day.

The slight increase in the stock market of the winning country

After the World Cup, markets with national teams that have won the championship have always gained points since 1974. The only external case for Brazil in 2002, the rest of those markets rose immediately after that to the average. 3.5% and maintained for 3 months.

The stock market of the losing country lost points

In the Goldman Sachs report, 7 out of 9 stock markets of the losers in the final also suffered a sharp decline with an average decrease of 5.6% in the following three months.

Chinese Stocks Fell Sharply as The Government Reduced Demand Stimulus

China’s stock market on April 25 saw the biggest drop in the past 6 weeks due to the growing concern of investors about the government’s ability to cut economic stimulus measures.

According to Bloomberg, the Shanghai Composite Index closed with a fall of 2.4%, bringing the total decrease from the beginning of the week to 4.5%. With such a decline, this week could become the strongest week of the index since the beginning of the year.

Stocks of telecommunications, technology, and consumer goods were not essential to lead the fall of the whole market. For every 10 stocks that have declined, there will be 1 gainer. Along with that, the exchange rate of the RMB against the US dollar dropped to the lowest level since the beginning of the month.

The mood of Chinese securities investors worsened from last week. After a meeting of the Politburo, the market raised rumors that the Government will cut measures to support the economy.

Earlier, growth stimulus measures have become the factor that led Chinese stocks to increase the world’s strongest since the beginning of the year. In the past year, Chinese stocks plunged due to the slowing economy and the US-China trade war.

In recent days, there are many forecasts that the US and China are about to come to a trade agreement. However, this assessment is not enough to lift the psychology of Chinese securities investors.

Strategist Zhang Gang of Central China Securities said that concerns about the possibility of policy shift are negatively affecting the market. Investors can hardly find any industry stocks that help them earn money at this time, so they feel an urgent need to leave the market.

The decline of Chinese stocks took place despite PBoC claims there was no change in monetary policy stance and no intention of tightening or easing policies. Northeast Securities strategist Zhengyang Shen commented that it seems that investors are rushing to sell stocks to take profits, taking into account changes in expectations of government stimulus measures.

US Stock Market This Week Increased Sharply

The US stock market closed near a record high on Friday after the country’s biggest bank – JP Morgan Chase announced better business results than expected.

According to Reuters news agency, with this rally, the S&P 500 is now less than 1% of the record high set in September last year. After the sell-offs at the end of last year, all three major indexes of US stocks in the first quarter of 2019 had the strongest increase in nearly a decade. However, this April, the market moved to a sideways trend before entering the first quarter business reporting season.

As one of the opening companies for the reporting season, JPMorgan Chase offers revenue and profit margins far beyond analysts’ forecasts. These figures help ease investors ‘previous concerns about the potential decline of listed companies’ profits. At the close, JPMorgan Chase gained 4.7% leading the rise of banking stocks.

Analysts now forecast the Q1 earnings of S&P 500 firms to fall 2.3% over the same period last year and improved compared to last week’s forecast. This will be the first time to reduce quarterly profits of Wall Street listed companies since 2016. However, among the S&P 500 companies that have announced their business results so far, there are 79, 3% gave results beyond the forecast.

Walt Disney shares rose 11.5%, reaching the highest level of all time, becoming the biggest boost for the rise of Dow Jones and S&P 500 after the company offered the price for online video transmission service. soon to be deployed. Netflix, Walt Disney’s rival in online video streaming, slipped 4.5%.

Closing the session on Friday, S&P 500 increased by 0.66%, reaching 2,907.41 points; Dow Jones increased 1.03%, reaching 26,412.3 points; and Nasdaq rose 0.46% to 7,984.16 points. Both Nasdaq and Dow Jones are currently about 1.5% lower than the record close.

For the whole week, the S&P 500 increased by 0.5%, Nasdaq increased by 0.6%, and Dow Jones fell by 0.1%. This is the third consecutive week of the S&P 500 and Nasdaq. Financial stocks were the biggest gainers this session, with an increase of 1.9% thanks to the positive business results report of JPMorgan Chase.