0 Have your say Spotify is set to sell shares on the open market for the first time today, in what is being seen as a test case for the viability of streaming businesses. The Swedish company will make its stock market debut Tuesday, casting a spotlight on its early lead in music streaming.Spotify has struck a chord with 71 million worldwide subscribers so far and is aiming to increase that number to as many as 96 million subscribers by the end of the year. By comparison, Apple’s nearly 3-year-old self-titled music streaming service has 38 million subscribers. A list of other formidable competitors that includes Google and Amazon also offer similar music streaming services, raising the possibility of Spotify being wiped out by far richer rivals. READ MORE: Netflix down as thousands hit by service outageSpotify’s early lead in music streaming has drawn comparisons to Netflix, which built upon its pioneering role in DVD-by-mail rentals and then video streaming to … [Read more...] about Spotify to make stock market debut amid uncertain outlook
Credit traders haven’t been this apprehensive about junk bonds for more than a year.A measure of credit risk for U.S. high-yield bonds reached the highest levels since December 2016, as jittery investors cut risk amid a stock market plunge. The cost to protect a basket of junk bonds against default rose as much as 12.7 basis points to more than 373 basis points on Monday afternoon in New York, according to data provider CMA.The biggest exchange-traded fund that buys the debt reversed last week’s recovery to return to levels near November 2016 lows. So far this year, investors have pulled more than $6 billion from the two largest junk-bonds ETFs.A 3.1 percent drop in crude oil made debt tied to energy companies including Weatherford International Plc some of the biggest losers of the day. The cost of buying protection against default rose for all types of junk bonds besides utilities.The fresh pain comes after junk bonds suffered their worst first quarter since the financial … [Read more...] about Stock Market Pain Bleeds Into Junk Bonds
Donald Trump has long bragged how his presidency has been a boon to the stock market. His recent attacks on Amazon.com Inc. are undermining that position.The S&P 500 plunged more than 2.5 percent Monday, headed for the worst start to a second quarter since the Great Depression. That’s a superlative Trump probably wouldn’t like, and Amazon has a big hand in it.The online retailer was the biggest drag on the equity benchmark Monday, a position its held for a week as it plunged 12 percent since Axios reported that the president was “obsessed” with regulating the company. That wiped about $75 billion from Amazon’s market capitalization.Taking that big of a bite out of a company the size of Amazon can’t help but hurt the broader market. Amazon alone has wipe almost 10 points off the S&P 500 -- it’s the fourth-biggest issue in the index at 2.5 percent. The hit is more than double the next biggest drag on the equity benchmark, which has fallen … [Read more...] about Trump’s Amazon Tweets Dent His Stock Market Bragging Rights
What's the most volatile investment you can put your money in? Until bitcoin made headlines last year with its dramatic price rise, many would have answered: frontier markets. Comprising nations that are just beginning their journey of economic expansion, these countries are those considered on the rung below the "emerging" markets of Brazil, India, China and Russia. The assumption has long been that investing in these less developed countries is riskier and more volatile – but data from FE, a financial analytics firm, suggests that may not be entirely the case. Robert Wilson of FE said frontier markets' high volatility is a common misconception. Data shows that companies in these countries have consistently been less volatile than emerging markets in the past 10 years. Using a score that measures fluctuations in average weekly returns, the frontier marketsindex scored 15, compared to 22.7 for the FTSE All-Share and 23.6 for … [Read more...] about Why the world’s fledgling stock markets might not be as risky as you think
A "more severe" stock market correction is coming, according to the boss of Allianz. Oliver Bate, interviewed on Saturday at the China Development Forum in Beijing, predicted a rout on equity markets was overdue. He told CNBC that markets had been “really been buoyant for a long time now” and that “valuations are extremely high, higher than you can actually justify based on fundamentals”. Mr Bate couldn’t give a precise timing for the correction, but he - and the Munich- based financial services giant Allianz - are convinced one is coming and that market risk is "severely mispriced". As a result Allianz is being "very, very careful". This might be an overly pessimistic view, considering the global economy seems to be in a pretty good place and given the correction markets have already seen since the start of February. But the global stock market rally has been running for a long time. In fact it’s been running for nine years, fuelled in part by … [Read more...] about Is a second stock market correction coming?