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Market Summary 28/11/18

Wenqian Zeng 28th November 2018   Falling prices of Bitcoin After trading of a peak of $19,000 in December 2017, Bitcoin’s trading price has now plumeted to just $4,600, a drastic fall of nearly 70% this year1 .This likely indicates the end of Bitcoin, as many investors lose confidence in the cryto currency.   Judging …

Market Summary 21/11/18

Wenqian Zeng 21st November 2018   Brexit: May shall return to Brussels This weekend, Theresa May will head to Brussels for another Brexit negotiation. The UK and Brussels have already drafted the terms of UK’s exit from EU, however a deal must be written between UK and EU in time for Sunday’s summit of European …

Greek banks: Where are they now? (Financials)

Shrey Srivastava 22/11/18 The most severe economic depression for any country since the United States in the early 20th century (Chatham House, 2018) was the recession faced by Greece following the 2007-2008 financial crisis. Looking at the impact on some of the largest private banks in Greece, it remains clear that the road ahead is …

Michael Kors’s purchase of Versace: a Pandora’s box

Cong Minh Nguyen 22/11/2018 Michael Kors purchased Versace with $2.12 billion on 25/09/2018, including net-debt. The Wall Street Journal regarded the deal as “a rich one”. This premium price is 117 times more than the Italian luxury fashion house’s 2017 profit of only $17.5 million. There are uncertainties about how the two in this ‘abnormal …

Chip War – US and China

Wenqian Zeng 16/11/18 US chipmaker Micron Technology (MU) has accused China’s advanced manufacturing enterprise Fujian Jinhua Integrated Circuit Co (JHICC) of stealing trade secrets 2. Following that, it has been announced that from 29th October onwards American companies are restricted to sell any crucial technology to JHICC (Pham, 2018). With the chip industry now being …

Ahren Innovation Capital

Wenqian Zeng 16/11/18 A group of 8 Cambridge scientists including Nobel Prize laureates Sir Venki Remakrishnan and Sir Gregory Winter have partnered with an unique venture capital fund: Ahren Innovation Capital with the mission to “support transformational companies at the cutting edge of deep science and deep tech” (Ahren innovation capital, 2018). Founder and CEO …

Raab resignation tanks pound:

Shrey Srivastava 16/11/18 Dominic Raab is the most prominent in a series of resignations of senior Conservatives, following Theresa May’s proposed Brexit deal with the EU. [1] The news comes after Jeremy Corbyn confirmed that the Labour Party would not support the deal [1]. Further backlash has included the MP for North East Somerset Jacob …

Buffett optimistic on US financials:

Shrey Srivastava 16/11/18   The $736bn (GuruFocus, 2018) asset manager Berkshire Hathaway has recently revealed that it has taken a $4bn stake in JPMorgan Chase, worth about 1.1% of their outstanding shares [1]. Berkshire has also invested billions of dollars into other US banks [2] to expand its huge long bet on the US financial …

JP Morgan is now in Warren Buffett’s Portfolio

Cong Minh Nguyen 16/11/2018 Warren Buffet only invests in what he himself is able to understand. For years, JP Morgan was associated with derivatives that Mr Buffet regarded as “financial weapons of mass destruction”, with the “London whale” fiasco of 2012, even regulators were so wary that they placed a secret restriction on the big …

BREXIT Chaos and potential tightness of tech startups:

Cong Minh Nguyen 16/11/2018   On Thursday, Theresa May made the solemn promise to fight for her Brexit deal despite the chaos within her party. The negotiated plan would help Britain maintain economic ties with the EU; meaning continued backlash from Brexiteers. Despite significant political loses from the resignation of Esther McVey and Dominic Raab, …