Monday Briefing: Pound Continues to Freefall

June 27, 2016

People speculated the pound would drop to a 30-year record low if a Brexit happened. In a post-Brexit world, that speculation has turned into reality as the pound has lost that much value and counting, as it continues to fall in Asia’s markets early today and rise to the top of Sentifi Attentions list. Coming off the shock last week, this week will see executions of emergency response plans from countries and central banks to shield themselves from the negative impact of Brexit. Read on to find what stories on Sentifi await the markets after the nightmare in the U.K.


1/ GBP: Continues to fall post-Brexit [1,639 messages in the last 24h]

Asia opens its market today only to see the value of the sterling get pounded further in the aftermath of Brexit. Countries and central banks are taking safety steps to face the impact of Brexit. Japanese Prime Minister Shinzo Abe will have a meeting with top economic aides to devise a response plan in terms of fiscal and monetary policy. The Bank of England has planned to pump £250 billion into the markets to ease the impact. Federal Reserves Chairwoman Janet Yellen has a speech scheduled at an ECB conference on Wednesday where she will discuss how the outlook of the U.S. economy and the plan for a rate hike will adapt.

2/ George Osborne: Speaks to the market about Brexit [1,526 messages in the last 24h]

George Osborne will be put to the test as he has to deliver reassurances to the financial markets about the stability of the U.K. economy and finance.

The Chancellor will have a speech at 7 a.m. U.K. time to discuss the elephant in the room and to promote positive thinking about the U.K.’s future. According to the Telegraph, he will present new measures to protect the national interests in the coming months. The U.K. economy is facing a storm that will threaten its financial and economic stability and could potentially hurl it into a recession.

3/ Network Rail: Government demands rail networks sell-off [484 messages in the last 24h]

The government is coming up with a plan that will break up the rail network and result in £10 billion of cost to the taxpayers. And Network Rail gets thrown into the mix against its will as the company owns much of the U.K. national railway system. It’s received a request from the government to sell off many parts of that system to different train firms.

4/ SolarCity Corp: Speculated to change the U.S. energy landscape [254 messages in the last 24h]

The U.S. energy landscape is seeing changes. Solar companies are taking market share away from electric utilities, and Tesla will make the solar threat even bigger with many advantages it could give SolarCity. Tesla could provide SolarCity with a foundation for a jump in technology and innovation, and even the necessary capital to boost.

5/ Cavium Inc: Analysts release projections on share [215 messages in the last 24h]

The company plans to release its next report earnings around August 3, which urges analysts to release their projections for future stock price movement. For now, the consensus price is $62.846, and the top one year target is $80.

6/ Kuka: Almost closes deal with Midea [209 messages in the last 24h]

Kuka and Midea are inches away from closing the takeover deal that will see an agreement to maintain existing headquarters, factories and jobs. It will last until 2033, and the deal is expected to sign in the coming days. The deal had previously started arguments among the German politics regarding the prospects of the deal, which caused Chancellor Angela Merkel to speak up that she wouldn’t block the deal but leave it open for any counter-bid from other German firms. Since then, no German or European firm has offered a counter-bid.

Midea will be soon to be an integral part of Kuka’s future.


7/ TransCanada: Seeks $15 billion from Obama rejection of pipeline [179 messages in the last 24h]

In a case where a foreign company uses trade deals to challenge U.S. policy, TransCanada is seeking $15 billion under the North American Free Trade Agreement for the rejection of the Keystone XL oil pipeline from the Obama administration. The president deemed the pipeline wasn’t in the national interest, and the company fought back by claiming the U.S. government delayed the final decision for seven years with multiple rounds of arbitrary and contrived analyses and justifications. The company also filed a lawsuit in a federal district court in Texas with an argument that Obama didn’t have the authority to block the project.

8/ World Bank: Avoids transparency and refuses to prioritize public interest [174 messages in the last 24h]

The World Bank is facing criticism for its lack of transparency on review of its environment and social protection policies, despite the fact that 69 civil society organizations from 26 countries had urged the bank to maintain transparency. Recently, the final draft of the World Bank safeguards package was requested to be publicly disclosed the same time that it was shared with the Board for review. Yet, the World Bank failed to do so thanks to Access to Information Policy that allows the document to be disclosed only after being submitted to the Board and before the approval date.

9/ Fresenius: CFO to replace CEO [171 messages in the last 24h]

CEO Ulf Mark Schneider has announced its resignation, effective on June 30, to pursue other opportunities. CFO Stephan Sturm has been appointed to be the new CEO, effective in July 1. Schneider held the chief executive position for 13 years, during which he helped quadruple sales and increase the growth of the company.

10/ Barnes & Noble Inc: Adds alcohol into its business model [145 messages in the last 24h]

Soon you will be able to dine at Barnes & Noble. (AP Photo/John Raoux, File)

In an attempt to compete against Amazon and to diversify, the bookselling company is creating a new restaurant chains division that will serve food and alcohol. It plans to open four concept stores with restaurants to extend its customer base and hopefully to revert to profits from multi-million-dollar losses.

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