© Reuters. FILE PHOTO: Ericsson logo is seen at its headquarters in Stockholm, Sweden June 14, 2018. REUTERS/Olof Swahnberg/File Photo
OSLO/STOCKHOLM (Reuters) – Ericsson (BS:ERICAs) said on Tuesday the closing of its $6.2 billion Vonage acquisition was delayed to the end of July, from the first half of the year, due to a pending investigation by a U.S. national security panel.
The Swedish telecom equipment maker agreed to buy cloud communications firm Vonage in all-cash deal in November, as part of its efforts to broaden its 5G portfolio.
But, since then, Ericsson has faced a bribing scandal in Iraq that has led to the U.S. Department of Justice and the Securities and Exchange Commission (SEC) opening investigations against the company.
Several analysts had estimated that the probes could either delay getting approval for the deal from U.S. regulators or even derail it.
The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), an interagency panel that reviews foreign investments for potential national security risks.
“Given that the committee’s review is ongoing, we cannot comment on any specifics,” an Ericsson spokesperson said.
Ericsson also said both the companies were working closely with CFIUS and the deal has cleared all other requisite foreign and U.S. regulatory approval requirements. The deal is one of the largest in Ericsson’s history.
Morgan Stanley: bear market rally to continue
One of Wall Street’s best-known bears, Michael Wilson, thinks the S&P 500 will rise another 7% before turning down, so the bear market rally will continue for now, writes Market Watch.
After the Dow Jones, S&P 500 and Nasdaq Composite joined their strongest weekly gains since at least May last Friday, Wilson, who is chief strategist and head of U.S. equity markets at Morgan Stanley (NYSE:MS), told clients that there could be another 5% to 7% before the downward trajectory of U.S. stocks resumes during the latest bear market recovery.
Wilson has held a bearish view of the stock market for about 2 years and correctly predicted a sell-off this year.
Wilson explained in a research note sent out to clients on Monday that a pullback in the 38-50% drop in the stock market this year “would not seem like something unnatural, not consistent with the previous bear market rally.”
While growth concerns have triggered a sell-off in commodities and lowered inflation expectations, the fact that the U.S. economy is already slowing and heading toward recession means that any market rally is likely to be short-lived, and U.S. stocks are likely to eventually fall.
Wilson mentioned in the note that the bear market is not over yet, although it may appear otherwise in the next few weeks as the market takes the rate cut as a sign that the Fed can still manage a “soft landing” and prevent a meaningful revision to earnings forecasts.
U.S. stocks rose last week as investors now hope the slowing economy and falling commodity prices may inspire the Fed to raise interest rates less sharply. Federal funds futures, a derivative used by investors to bet on the pace of the Fed’s monetary policy changes, estimate with a high probability that the Fed will be forced to start cutting interest rates again as soon as next summer.
They also consider the lower peak in the federal funds rate: it will peak around 3.5% at the end of 2022 instead of 3.75% just a couple of weeks ago. Wilson also pointed out the drop in Treasury yields: the 10-year Treasury bond yield went from 3.230% to a low of 3.07% on Friday before rebonding again on Monday.
Wilson expects the S&P 500 index to fall to around 3,400 points if the U.S. Federal Reserve manages to get a “soft landing” for the economy — which Fed Chairman Jerome Powell said last week would be “a very difficult thing to do.”
Wilson expects that if the U.S. economy plunges into recession, the S&P 500 index will fall to around 3,000 points. In any case, Wilson believes that U.S. stocks are still highly valued because the risk premium — that is, the measure of compensation that investors receive for the extra risk of owning stocks instead of bonds — remains about 300 basis points higher than the 10-year Treasury bond yield, which is considered a “risk-free rate.”
Easing chip shortages to help Volkswagen in H2 – CEO
© Reuters. FILE PHOTO: Volkswagen logo is pictured at the 2022 New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Brendan McDermid/File Photo
BERLIN (Reuters) – Volkswagen (ETR:VOWG_p) sees a strong second half of 2022 and expects progress in catching up with rival Tesla (NASDAQ:TSLA) as easing chip shortages start to offset supply chain bottlenecks and rising costs, the carmaker’s CEO said on Tuesday.
“We are earning more than ever,” Chief Executive Herbert Diess said at a works meeting, adding Volkswagen is ramping up electric vehicle volumes in its biggest markets in Germany and China thanks to easing semiconductor shortages.
This should allow the carmaker to narrow the Volkswagen-Tesla gap this year and meet its goal of becoming market leader by 2025 if it seizes the moment while the U.S. electric car maker burns cash on large investments, the CEO said.
“Elon (Musk) has to ramp up two highly complex factories in Austin and Gruenheide at the same time – as well as expand production in Shanghai. That’s going to take strength out of him,” Diess said.
Reliance Chairman Mukesh Ambani steps down as director of telecom arm
© Reuters. FILE PHOTO: Mukesh Ambani, Chairman and Managing Director of Reliance Industries, arrives to address the company’s annual general meeting in Mumbai, India July 5, 2018. REUTERS/Francis Mascarenhas
BENGALURU (Reuters) – Reliance Industries Chairman Mukesh Ambani has stepped down as director of Reliance Jio Infocomm Ltd, the conglomerate’s telecom arm said on Tuesday.
Reliance Jio said https://refini.tv/3Nrs773 it has appointed Mukesh’s son and non-executive director Akash Ambani as the chairman of its board. Akash has been involved with the telecom unit since its launch in late 2016, where he started as a director.
India’s telecoms sector had been upended after the entry of Jio, which triggered a price war that forced some rivals out of the market and turned profits into losses.
Jio, which started out offering mobile teleservices, has been aggressively investing in services like internet broadband and forging ties with handset makers to launch low-cost smartphones and providing 5G services.
Copper price chart fluctuates at previous closing levels
Copper prices chart are fluctuating slightly near the level of the previous close as investors estimate a lot of factors,...
Natural gas price in Europe per 1,000 m3 hits $2,100 on the exchange
Natural gas price Europe per 1,000m3: September gas futures contracts (benchmark TTF) were trading at $2,100 per 1,000m3 on Monday,...
Portugal and cryptocurrency: 12 companies await permission to operate
Portugal and cryptocurrency news: Central Bank is considering 12 applications submitted by companies that intend to provide cryptocurrency services in...
Vitalik Buterin: Transition to Ethereum PoS algorithm could make crypto payments popular again
During the Korea Blockchain Week 2022 conference, Ethereum co-founder Vitalik Buterin said that the network’s move to Ethereum PoS algorithm...
Hodlnaut news: cryptocurrency lender halted cryptocurrency withdrawals
Urgent Hodlnaut news: Cryptocurrency lending site Hodlnaut has unilaterally frozen cryptocurrency withdrawals. This is reported in the blog of the...
World food prices chart: World food prices have plummeted
Why are worldwide food prices rising? First, because of the current world situation. But world food prices fell sharply in...
Are hedge funds bad? Investors are disappointed in hedge funds
Are hedge funds bad? This year is sure to be one of the worst years in hedge fund history. In...
Chinese economy 2022: China will give up first place in the list of the largest importers of raw materials
Chinese economy 2022 news: China’s commodity-buying companies will be adversely affected by government debt and demographic problems. Over the next...
Positive news from the U.S. labor market has raised fears of further FED rate hikes this year
FED rate hikes and inflation this year are at record highs. The U.S. jobs data released on Friday were truly...
The strength of the U.S. dollar delayed the recession announcement
The jobs report was released at the end of last week’s work week. Economists were confident that 258,000 jobs were...
The US market today maintains growth. Inflation Ahead
The main U.S. index closed the week near the highs of recent months, the highest prices since early May. The...
Price of gold falls on expectations of further US Federal Reserve rate hike
Price of gold falls: the price of the precious metal on Monday morning slightly decreased on the prospects of further...
Goldman Sachs oil price forecast 2022: Oil price forecast worsens in Q3 and Q4
Current Goldman Sachs oil price forecast 2022: Analysts (NYSE:GS) believe another drop in Brent prices has been driven by low...
Why is oil rising in price today after a decline last week
Why is oil rising in price? The price of October futures on London’s ICE Futures Exchange for Brent amounted to...
The Balance: Bitcoin bearish trend hasn’t stopped Americans from investing more in cryptocurrencies
Analytical resource The Balance posted a report stating that 39% of U.S. investors have become more invested in cryptocurrencies, despite...
Cumberland: institutional investors give bitcoin growth predictions as high as $32,000 as early as 2022
US market maker Cumberland conducted a survey of institutional investors and found that most respondents were making bitcoin growth predictions...
Is dogecoin a good investment? Elon Musk: Dogecoin is much faster than the Bitcoin network
Is dogecoin a good investment? The CEO of Tesla again spoke out in support of Dogecoin. He stressed that the...
Voyager Digital is restructuring and preparing for sale
Cryptocurrency broker Voyager Digital said it is preparing a plan to restructure and resume cash withdrawals from the platform According...
Mike McGlone: Ethereum and Bitcoin oversold
A senior commodities strategist at Bloomberg Intelligence believes that according to technical analysis of the market, leading cryptocurrencies are selling...
Chainlink protocol developers refused to support next Ethereum fork
Ethereum is preparing to switch to PoS, and the community expects forks of the second cryptocurrency to appear on the...
PredictIt news: CFTC shuts down PredictIt prediction market in US
Important PredictIt news: The U.S. Commodity Futures Trading Commission (CFTC) has issued an order to shut down one of the...
Is bitcoin mining profitable today? Bitcoin mining difficulty drops for third month in a row
Is bitcoin mining profitable? The difficulty of mining bitcoin began to drop precipitously as the largest-capitalization cryptocurrency’s price fell below...
WazirX news: Indian authorities froze assets of WazirX
WazirX news: India’s economic intelligence agency froze assets of Binance-bought WazirX after allegations of money laundering Indian authorities have seized...
US recession and stock market. Thomas Barkin, Fed: Recession is virtually impossible
The U.S. recession and the stock market are closely linked. The key U.S. stock market indices – Dow Jones, NASDAQ...
Euro rate chart: the euro is not going into a trap
No matter how much FOMC officials try to convince investors of the Fed’s commitment to aggressive tightening of monetary policy,...
European stock market news: Europe started to lag behind the rise in U.S. stock prices
Current European stock market news: U.S. stock futures rose slightly Friday, helped by tech stocks as investors prepare for the...
Dollar rate today live: What is happening to the dollar today?
As you know, the dollar exchange rate has been lagging lately. We all wish wars would end as quickly as...
U.S. stock market capitalization 2022: Morgan Stanley advises against buying U.S. stocks
U.S. stock market capitalization by 2022 leaves much to be desired. The key U.S. stock market indexes – DOW Jones,...
EUR/USD: European Union’s main currency problems
EUR/USD: The pair stayed in the flat, as investors refrained from making big bets before the U.S. labor market data...
Asian stock market charts: Major Asian indicators are up 0.88%
What’s happening on the Asian stock market charts right now? The major Asian indicators are mostly up 0.88%. Some indicators,...
- Coronavirus9 months ago
Biden administration still seeking agreement from Mexico on return of asylum seekers
- Cryptocurrency9 months ago
NFT World Records: CryptoDragons Sold Out 500 Eggs in Its Primary Pre-Sale in Тhe Тwinkling of аn Еye!
- Economy9 months ago
Analysis-Europe’s big payday remains elusive even as inflation surges
- Cryptocurrency8 months ago
In the Wilder World, Staking and Liquidity Mining Have Arrived
- Cryptocurrency9 months ago
Crypto.com is the #1 app in the Google Play Store in the US
- Cryptocurrency9 months ago
The Next Web 3.0 Social Media Will Be Built on Solana
- Stock Markets4 months ago
WeLion Cooperates with Nio to Produce Semi-Solid Battery
- Forex9 months ago
Dollar Consolidates After Strong Gains; Tapering Could Be Speeded Up