Five most important news to start your day. These events are very likely to influence the market and trigger exchange rate fluctuations. Read to stay informed.
Tech Stocks Plummet
Five largest tech companies — Apple, Alphabet, Microsoft, Amazon, and Facebook — have lost over $120 billion in market capitalization since last Thursday. A landslide in share price has barely moved the .SPX index though. Until recently the stocks outperformed the market, also becoming one of the top choices for bullish investors. Now, when the downfall is more than obvious, money is being relocated to companies with higher dividend yield and more stable share prices.
The Future of Shale Oil
American shale companies have been getting a lot of attention — and investors’ money — recently. Technological advances in shale oil extraction and decreasing production costs caused another market boom. Certain investors, however, express negative sentiments. They believe the segment can easily overheat, being damaged by its own success. Aggressive oil extraction by an ever-increasing number of shale companies can cut the oil prices. Which in turn will make the business unfeasible, once again.
Air Bag Producer Takata to File for Bankruptcy
Takata Corp, a Japanese manufacturer of airbags is reported to file for bankruptcy later this month. Technical malfunction of its products and resulting expenses are reported to be the reason for bankruptcy. Key Safety Systems Inc, an American-based and Chinese-owned auto parts producer, is expected to purchase Takata’s assets under the agreement between the two companies.
Snap Shares Roll Back to IPO Prices
Snap shares lost 4.97% of its value and reached the pre-IPO price level on Thursday. Investors doubt the most recent competitor of Facebook will achieve long-term success and stable financial position. The company failed to surprise its shareholders with expanding revenue, showing limited potential for growth. SNAP shares are currently traded at $17.00.
The Bank of Japan initiated no changes in its monetary policy on Friday. Private consumption and overseas growth received a positive assessment. Export, an essential part of the Japan’s economic performance, is expected to expand and fuel further growth. The Japanese economy was lagging behind other OECD countries in the last few years.