Connect with us
Uber 2018 Uber 2018

Global Affairs

Breakfast Briefing: Kalanick’s Truce, GE Tanks and Bitcoin Bounces Back

 4 min read / 

Bitcoin Bounces Back

Bitcoin fell once again before rebounding during yesterday’s trading.

Editor’s Remarks: Following the cancellation of the SegWit2x hard fork last week, bitcoin has taken a beating on the markets. Meanwhile, bitcoin cash, which split from bitcoin earlier this year, has gained popularity due to its larger block size that results in faster transactions and nearly hit $2,500 last week. Bitcoin gold, another hard fork from the original blockchain, was released on November 12th and was trading at $270 at the time of writing, down from a high of $496 on Sunday. However, following a nearly 30% drop over the weekend, bitcoin gained around 15% yesterday and is presently trading above $6,000. The most recent fall follows similar movements over the summer, which saw bitcoin pull back 40% on two separate occasions before storming ever higher.

GE’s Share Price Tanks

The conglomerate halved its dividend and announced a restructuring program.  

Editor’s Remarks: General Electric’s management revealed plans to overhaul the group’s strategy in an update yesterday and the company’s share price was punished for it. Shares fell 8% to fresh lows of $17.50 after CEO John Flannery announced that the dividend would be slashed this quarter due to the group’s poor cash position. A wider restructuring plan is expected to involve potentially huge job cuts and disposals of up to $20bn worth of assets. Some of the group’s sales have significantly weakened and there is a rising sense that GE has failed to move with the times, given that it is still struggling despite global economic growth being strong.

Nexon Hits All-Time High

The Japanese gaming company has seen its stock price double over 2017. 

Editor’s Remarks: After Nexon doubled its operating profit forecast and announced a new acquisition, its share price leapt 10% to a new all-time high. Nexon, which makes online games for both PC and mobile platforms, has decided to acquire Pixelberry Studios, a Californian company that produces story-based smartphone games. The acquisition is designed to bolster Nexon’s mobile offerings and its logic is supported by the fact that Pixelberry is generating strong revenues with attractive margins. Nexon has recently been focusing on building updates for its existing games and has a shortage of new offerings in its product pipeline; it is hoped the acquisition will change this.

SoftBank-Uber Deal on the Mend

SoftBank signed an agreement over the weekend that stipulates the structure of its planned $10bn investment in Uber.

Editor’s Remarks: Travis Kalanick, the ousted CEO of Uber, made the headlines again recently after it emerged that he was the main obstacle to SoftBank taking a large stake in the ride-hailing app. The Japanese conglomerate is unwilling to invest in Uber until Benchmark, a prominent VC firm that is one Uber’s earliest backers, resolved its ongoing lawsuit and disagreement over voting rights with Kalanick. Benchmark has now agreed to suspend its lawsuit against Kalanick, while the former CEO has acquiesced to Benchmark’s demand that he seek board approval for any board appointments he makes. SoftBank hopes to buy a 14% stake in the company and could leave the table if it is not offered at least this much.

Pound Falls Yet Again

The sterling fell following reports that a number of Tory MPs planned to challenge Theresa May’s leadership.

Editor’s Remarks: The pound fell 0.7% and 0.6% against the US dollar and the euro, respectively, after it was revealed that a group of Conservative MPs were planning to sign a letter of no-confidence in the prime minister. Theresa May’s authority over her own party took an enormous blow after she lost her parliamentary majority in last June’s snap election. Her cabinet has also suffered lately due to the resignation of two high-profile ministers, Michael Fallon and Priti Patel, over conduct issues. The recent fall in the pound comes after a nearly 1.5% drop against the dollar on November 2nd when the Bank of England announced it was increasing interest rates.

Have your say. Sign up now to become an Author!

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Send this to a friend