Skype set to float on US stock market
Skype is set to float soon on the US stock market.
Internet communication company Skype has registered to join the US stock market . The company based in Luxembourg plans to raise approximately 63 million GBP through the flotation of its stock. It is expected that the technology company will trade on the NASDAQ and will sell shares in the form of American Depository Shares. This is the type of share available to foreign companies wishing to trade and sell shares in the United States.
Skype’s leading software revolutionised the way that computers and mobile telephones can be used by users for free over the internet or for a cut price to house phones and mobile phones. There is increasing speculation over the price that shares will initially be offered as no specific release date or price has formally been announced by the company.
According to recent figures released, Skype had over 560 million registered users world wide in the first six months of 2010. These users logged on to Skype for over approximately 95 billion minutes of video or voice calls during that period. Skype revealed that a net profit of $13 million in the first half of 2010, however, the company had also made a loss of $417 million in 2009 due to legal issues over technology ownership. It will be interesting to see the initial offer set to be released soon.
Unemployment in Australia rises
Unemployment in Australia increases to 5.4% following national election.
Recent official figures released show that Australia’s rate of unemployment increased to approximately 5.3% in July 2010. This represents an increase of 0.2% from June 2010, approximately 24,000 jobs. An increase in unemployment was unexpected by analysts in Australia considering it’s economy was relatively unaffected by the financial crisis.
These figures are likely to have a negative political effect on the current government close to the national elections. However, some political and economic specialists attribute these figures to an unexpected increase in population figures and a subsequent larger potential workforce. The latest opinion polls in Australia show that the Labour party are currently in the lead, however, not by a large minority.
US House of Representatives passes key financial reforms
Financial reforms in the US have recently been passed in the House of Representatives to overhaul the financial system.
These reforms represent a large overhaul of the the financial regulatory system in the United States design to prevent any major future crisis such as the one that brought down so many banks and insurance companies recently. The bill will also have to go to the Senate before President Barack Obama can officially and legally sign in into law. The bill for the financial reforms was passed in the House of Representatives, by 237 votes against 192 votes.
Financial reforms were a key part of President Barack Obama’s presidential campaign and pledged in 2008 to make this one the key issues if he was to be elected to office. The bill will go the Senate around mid-July and is expected to be very close regarding whether it will be passed or not. It is possible that some Republicans who do not agree with certain aspects will attempt to stop the bill and try to make further changes. The new legislation will create a new governmental agency with the aim of overseeing consumer lending and outlining new regulations. The hope is for a more transparent financial system that will prevent a major financial crash in the future.
Trade in China
China announces recently that it will consider allowing the Yuan to rise against foreign currencies such as the US Dollar and the GBP.
Amid increasing concerns from Western economies, China has indicated that it will consider allowing the value of the Yuan to rise. No specific pledges have been made, however, the Chinese central bank has stated that it plans to make the mechanism for exchange rates more flexible than it has been.
Critics of the Chinese central bank have often highlighted that the Yuan has in effect been pegged to the USD for several decades. This is a move which has led to accusations that China is trying to protect its exporters and increase economic growth as rapidly as possible despite rises in the currency’s value.
The announcement by the Chinese central bank has been welcomed around the world, such as by the President of the United States Barack Obama and the International Monetary Fund. The US has been particularly vocal regarding China’s control over its currency value and repeatedly claimed that these steps were anti competitive and contributed to huge trade surpluses.
Despite no time frame provided by the Chinese government, these are constructive announcements likely to ease criticism and increase political cooperation with China.
Exports in Finland showing growth
Economic reports suggest that Finland’s economy has slipped back into a recession.
During the first quarter of 2010, Finland’s economy fell back into a recession despite making a recovery in the previous months.Finland’s economy relies heavily on the export of goods from the country, especially in terms of telecommunication technology. Many large exporters around the world such as Germany have also been heavily affected by the financial crisis.
The Finish mobile phone company Nokia has been heavily affected by reductions in global trade as consumers opted to save during the recession and avoid luxury goods such as the latest technologies in mobile phones. Official reports released by the Finish government however indicate that exports have now made a recovery since the first quarter of 2010. Exports in Finland rose around 8% in April to 3.6 bn GBP, the largest period of growth in exports since late 2008.
The World Economic Forum recently announced in its review of countries that Finland is has the sixth most competitive economy in the world. This is good news for Finland and the European economy as a whole. Global reports suggest that many Northern European economies are returning to normal as many have announced tight new budgets in public spending.
