Kandeo Fund

Moody’s Downgrades Spanish Banks

admin — Fri, 18 May 2012 15:46:09 +0000

Distress continues in Europe. On Thursday Moody’s downgraded sixteen Spanish banks including BBVA and Santander, two of the biggest financial institutions in the country. The ratings agency mentioned the reduced ability of Spanish government to support them in a crisis. According to Moody’s “The Spanish economy has fallen back into recession in first-quarter 2012, and Moody’s does not expect conditions to improve during 2012”. The credit downgrade is a worrisome sign for investors and may cause a rise in the borrowing costs.
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The Smart Campaign Launches MF Library

admin — Fri, 18 May 2012 15:42:24 +0000

The Smart Campaign is a global initiative to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry. Last week it announced the launch of a client education resource library. A group within its task force has compiled a comprehensive list of client education materials that are in use in contemporary MF Industry. The resources come from a diverse group of regions and institutions and include a wide range of mediums (for example brochures, post cards, capsules, videos and cartoons). The library is still in development and will continue to expand in the next months.
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“De facto” Devaluation in Argentine

admin — Fri, 18 May 2012 15:39:33 +0000

Aldo Pignanelli, a former Argentine Central Bank president, warned that if economy follows on the current course a “de facto devaluation” is round the corner. “The situation is unsustainable in the long term: 4.50 Pesos and 5.50 Pesos for the official and the parallel dollar will end having a great impact on the level of prices”, he said. He blames the government of Cristina Fernández de Kirchner for the current situation (Argentina is the country with the highest inflation in the region) and calculates that by the end of the year the US Dollar will be trading at 5 pesos in the official market and 6 pesos in the parallel market.
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Facebook: The Third Largest IPO in History

admin — Fri, 18 May 2012 15:36:56 +0000

On May 17th Facebook, the biggest social network of the Internet, priced its Initial Public Offer (IPO) at US $38 a share. Financial experts calculate that at that price the company will raise US $16 billion, the largest technology IPO in history and the third largest IPO ever (Visa raised US $19.7 billion in 2008, and General Motors raised US $18.1 in 2010). Facebook is expecting the Securities and Exchange Commission to declare its offer effective before it can sell the shares to potential buyers. The clients may include large institutional investors, mutual funds and hedge funds.
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A Possible Greek Exit From the Euro

admin — Fri, 18 May 2012 15:34:20 +0000

The European Central Bank and the European Commission are making contingency plans for a possible Greek exit from the euro, according to a note published by BBC News. Karel De Gucht, trade commissioner, considers that the plans could minimize any “domino effect” in Europe. “Today, whether within the European Central Bank or the European Commission, services are studying emergency scenarios where Greece cannot manage” he asserted. On Thursday Fitch Ratings Agency downgraded Greece’s credit rating mentioning the heightened risk that the country may have to leave the eurozone.
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Spain Takes Over Bankia

admin — Thu, 17 May 2012 22:00:57 +0000

The rumors published in our site kandeofund.com have been confirmed. The Spanish government took over Bankia, the country’s fourth largest lender, in a deal that will give the state a 45% indirect stake. Uncertainty over the cost of Spain’s banking reform hit the Euro and the global markets. A huge rescue may put Spain’s fiscal solvency into question and the survival of the Euro zone could be at stake. Spain has already bailed out seven smaller saving banks but Bankia’s rescue is the biggest. Prime Minister Mariano Rajoy announced “We will deepen the process of cleaning up the banks”. He has promised not to use state funds to rescue the banks but mounting doubts are shaking international markets.

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Anonymous Attacks Virgin Media

admin — Thu, 17 May 2012 22:00:57 +0000

The British communications company owned by Sir Richard Branson was forced to take its website offline for an hour during a hack attack orchestrated by Anonymous as a protest against the company’s efforts to block access to The Pirate’s Bay, a file-sharing page. In a statement Virgin Media considered that “As a responsible ISP, Virgin Media complies with court orders but we strongly believe that tackling the issue of copyright infringement needs compelling legal alternatives, giving consumers access to great content at the right price, to help change consumer behavior.”

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Sony Reports Record Loss

admin — Thu, 17 May 2012 22:00:36 +0000

In the fiscal year ending in March, Sony, the Japanese multinational conglomerate, considered one of the leading manufacturers of electronic products, lost a record of US $5.7 billion. This way, the company finishes its fourth straight year with a loss. Panasonic Corporation is also in trouble: it is expected to announce US $10 billion in annual losses. This week Sony’s shares slipped to its lowest level in 25 years. Its television division has lost money for the past eight years. In despite of this situation the company predicts a US $376.5 profit this current fiscal year.

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Facebook Launches its App Store

admin — Thu, 17 May 2012 22:00:29 +0000

The successful company created by Mark Zuckerberg has launched a new app store to offer mobile programs that operate using the social network. In the near future developers will have the ability to charge a fee for apps sold. The company admitted that growth in mobile use could hurt future advertising revenue. The app center will be rolled out in the next week. In a statement the company explained: “If users increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected.”

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New Rules in China’s Twitter

admin — Thu, 17 May 2012 22:00:28 +0000

Sina Weibo is a Chinese micro-blogging website considered and hybrid of Twitter and Facebook. It is one of the most popular sites in China, in use by over 30% Internet users. This month the site will introduce new rules. The rules include what topics users can and cannot post. They aim to stop users from publishing content that spreads rumors “disrupting the social order”. A new user contract due to come into effect in May 28 also states that users should not use “oblique expressions” to get around the restrictions. Chinese authorities are putting pressure on social networks to manage what users are saying. A committee of users and experts will be tasked with enforcing the new contract.

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