Money

NYSE: SPOT

Wednesday, 4 April, 2018 0 Comments

Shares in Spotify (NYSE: SPOT) opened at $165 yesterday, more than a quarter higher than the $132 guide price set by the New York Stock Exchange. By the end of the day, some 30 million shares had traded hands. After going as high as $169, they lost momentum to close at $149, making the Swedish company worth about $26 billion, well above the value of other tech firms such as Twitter. Spotify used an unconventional process to go public: instead of issuing new shares, early investors sold their holdings, which gave the firm’s early backers a chance to cash in on its growth.

Can Spotify make money by streaming music? Or will it have to expand its offers to include services such as travel? After all, it knows where you’re going and what you like to listen to on the way. While we wait to see how this one unfolds, Samuel Huxley Cohen has curated a 55-hour Spotify playlist of Bob Dylan songs in chronological order.

Spotify


Aladdin: They call it Collective Intelligence

Monday, 24 October, 2016 0 Comments

With $4.89 trillion in its care, BlackRock is by far the world’s largest asset manager. The platform that unites all the BlackRock information, people and technology needed to handle all that money in real time is called Aladdin. “BlackRock wouldn’t be BlackRock without it,” the company says. While must of us are distracted by things that don’t really matter, this Skynet candidate continues to increase its intelligence.


Payments: Facebook has a message for paij

Wednesday, 18 March, 2015 0 Comments

Facebook hired PayPal’s David Marcus last summer to manage its messaging products, and in the company’s July earnings call, Mark Zuckerberg implied that a payment product was coming. And here it is: Facebook users can tie their debit card to their account to transfer money to one another with Messenger. “The Messenger app now includes a small ‘$’ icon above the keyboard which opens a payments screen where users can type the amount they wish to send,” reports Kurt Wagner for Re/code. The feature will be rolled out on iOS and Android in the US before launching internationally.

paij All of this will be watched with interest, no doubt, in Wiesbaden, where the paij app is headquartered. When the European Web Entrepreneur of the Year Awards were handed out last year, the Female Web entrepreneur Award went to Sylvia Klein, founder and managing director of paij. “Strategic partnerships and system integrations will help paij to determine the future of mobile payment apps initially in Germany, Austria, Switzerland, and later Europe in general,” she stated. “In the long haul paij has the potential to establish a mobile payment concept taking on global challenges.”

The “long haul” has a short shelf life these days and it’s not just Facebook’s Messenger that’s ante portas. Apple Pay is shaping up to be part of that “global challenge” that paij will have to deal with. By the way, paij might need to move up a gear or two if it’s develop a convincing European battlespace strategy. The company’s last tweet was on 18 February, the most recent Facebook post was on 2 March and those to click the blog link on the company’s site get this alert:

Welcome to Parallels!

If you are seeing this message, the website for blog.paij.com is not available at this time.
If you are the owner of this website, one of the following things may be occurring:
You have not put any content on your website.
Your provider has suspended this page.

Obviously, paij needs to work on its messaging.


The genius of Grexit

Tuesday, 17 February, 2015 0 Comments

The word “Grexit” combines Greek’ and ‘exit’ and it refers to the possibility of Greece leaving the eurozone. The term was coined by Citi economists Willem Buiter and Ebrahim Rahbari in a February 2012 note and it has spread rapidly since then. One sign of its genius is that it no longer needs translating.

German: Grexit-Wahrscheinlichkeit steigt auf 50 Prozent

Italian: Grexit, l’Italia rischia 61,2 miliardi

Spanish: Ni Grexit ni Grecovery

Dutch: ‘Grexit is niet te vermijden’

French: La fantasme du “Grexit”

Estonian: Repliik: Geuro ja euro või grexit

Portuguese: Grexit: como seria a saída da Grécia do euro

Swedish: Grexit dåligt alternativ för EU:s skattebetalare


Watch out for the currency traps

Tuesday, 2 December, 2014 1 Comment

“We cannot go on with this euro. We must improve the European monetary policy and achieve equality of the dollar and euro interchange,” said former Italian Prime Minister Silvio Berlusconi at the Forza Italia party’s ‘No Tax Day’ rally in Milan on Saturday. “We must bring back our right to print money and establish monetary market exchange.”

Meanwhile, Tehran’s economy minister, Ali Tayyebnia, warned yesterday against “frenzied behavior” as Iranians dumped their rials. And in Venezuela, the dollar is now worth 1,700 percent more on the black market than the price the government charges those lucky enough to obtain it legally. Then, there’s the collapse of the ruble. This entire currency business is treacherous so it’s not surprising that when the Financial Times listed its Best books of 2014 at the weekend, the “trap” metaphor appeared prominently in the top titles reviewed.

Traps


The economy: Everyone’s talking about it…

Thursday, 30 October, 2014 0 Comments

… buy who can explain it? Maybe a philanthropist and a filmmaker. Combine the wealth of Paul Allen, co-founder of Microsoft, with the creativity of Morgan Spurlock, director of Super Size Me, and you get We The Economy, a series of 20 videos that seeks to explain key economic concepts. Topics covered and questions asked include, “Why is the law of supply and demand so powerful?”, “What causes a recession?”, “Why do we have budget deficits and a national debt?”, “What happens when jobs disappear?” and “Is inequality growing?”

Here’s THE STREET by Joe Berlinger. The clip comes with a range of resources curated to deepen one’s understanding of how the stock market works.


Ian Rankin sums it up

Tuesday, 5 August, 2014 0 Comments

Back story: F1 boss Bernie Ecclestone pays to end bribery trial


The easing and ending of the Zimbabwe dollar

Friday, 14 September, 2012

When Zimbabwe achieved independence from Britain in April 1980, its revolutionary rulers decided to replace the Rhodesian dollar with the new Zimbabwe dollar (ZWD) at par and it was valued at US$1.54. But tyranny and turmoil soon replaced law and order as the “comrades” warmed to statism and inflation inevitably followed. By 2007, the ruin […]

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Those huge French Whales: Kerviel, Tourre and Bruno Iksil

Friday, 11 May, 2012

According to Société Générale, one of its traders, Jérôme Kerviel, engaged in unauthorized transactions in 2007 totaling as much as €49.9 billion, a figure higher than the bank’s total market capitalization. On 5 October 2010, a French court sentenced Kerviel to five years of prison, with two years suspended, full restitution of the $6.7 billion that was lost because of his speculation, and a permanent ban from working in financial services. Afterwards, the bank stated that the restitution was “symbolic”, and that it had no expectation the sum would be paid.

Talking of 2010, fans of high finance will also recall the multi-billion dollar accusations of fraud against Goldman Sachs for selling its clients toxic mortgage-backed securities that it had specifically designed to fail for the sole purpose of betting against them. Who got blamed for this scam? Fabrice Pierre Tourre. The fabulous Frenchman was the only person named when financial regulators charged the US investment bank with fraud.

Now it’s the turn of their compatriot Bruno Iksil to share the (dis)honour. Back on 6 April, The Wall Street Journal reported that Iksil, a trader at J.P. Morgan known in the market as the “London Whale”, had made large bets on credit derivatives. The bank said Iksil’s unit was meant to ‘hedge structural risks’. A week later, Bloomberg ran a story titled “JPMorgan’s London Whale Could Use New Nickname” that noted Iksil “had earned two unforgettable nicknames: (1) The London Whale, and (2) Voldemort, after the Harry Potter villain.” On the very same day, J.P. Morgan reported its first-quarter earnings and CFO Doug Braunstein said that the bank was “very comfortable” with the unit’s positions. Morgan CEO Jamie Dimon called media coverage on the matter a “tempest in the teapot“. That’s a “tempête dans un verre d’eau“, by the way.

Yesterday, J.P. Morgan said it had taken $2 billion in losses so far in the second quarter related to the London Whale’s trading. Dimon called the strategy “flawed, complex, poorly reviewed, poorly executed and poorly monitored.”
WSJ bottom line: “Asked what, in hindsight, he should have paid more attention to, Mr. Dimon deadpanned: ‘newspapers.'”


Patacombos for the PIIGS!

Thursday, 16 February, 2012

Because the PIIGS are prevented from getting their grubby trotters on the printing presses by the European Central Bank, all they can do is stand idly, impotently by as money flows out of their economies and into more stable havens. This is exactly how it was in Argentina a decade ago except that Buenos Aires proved more imaginative when faced with this dilemma. The Argentine treasury began issuing a raft of IOUs with exotic names: lecops, porteños, quebrachos and patacones, for example. These were greeted with disdain by the global money markets, but McDonald’s, that beacon of capitalism and proletarian cuisine, was more humane:

“The Buenos Aires outlet of burger behemoth McDonald’s is preparing to accept one-year bonds in payment for food, as a cash crisis grips the Argentine economy tighter with the continued lack of conclusion to talks between the country and the International Monetary Fund (IMF). The bonds, nicknamed patacones after a currency that became defunct 120 years ago, will be issued as part-payment of wages for the 150,000 state workers in Buenos Aires who earn more than US$740 a month… McDonald’s has launched a special new meal deal called the ‘Patacombo’, consisting of two cheeseburgers, French fries and a drink.”

In the end, the patacones didn’t do the business and at the beginning of 2002 Argentina defaulted on its international debt. The peso’s 11 year-old tie to the US dollar was rescinded and the country was plunged into an enormous financial and socio-economic crisis. Unemployment rose to 25 per cent and wages dropped to their lowest level in 60 years. Moral of story: PIIGS should think carefully about how they intend to pay for their Patacombos, or else change their diet.