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One Response to “Financial News Wed May 30th 2012 – Bank Union, Zuckerberg Loss, Apple iTV”

1. 

   admin
   

   30. May, 2012

   The European Commission said yesterday, euro zone countries, should consider creating a “banking union”, that would allow the 17 euro zone members, to distribute the burden of bank failures. This new rescue fund would help recapitalize distressed banks, without burdening a singular government’s own finances. Currently, distressed banks would have to request help from their own government, which in terms raises that government’s deficit and debt. Vulnerable euro countries like Italy and Spain, would particularly benefit from such institution, as higher borrowing costs and a weaker euro, are putting a lot of strain on their banking system. Germany, the EU treasurer, has so far strongly resisted any collective European banking union and guarantee system, as well as bailout funds, unless a country is willing to undergo a. EU/IMF austerity program.
   After all the initial excitement and frenzy over the Facebook IPO, considered one of the most anticipated and most highly valued IPOs of IPO history, it seems like ticker FB is losing its footing, and making Mark Zuckerberg drop a couple of steps down on the billionairies index. In a matter of two weeks, the stock’s losses amounted to 24%, making Facebook, one of the worst- performing large IPO in the past decade, and Mark Zuckerberg’s wealth tumbled from $16.2 billion to $14.7 billion. Looks like the valuation was way to high after all and that many of the initial investors were not planning to hold on to the stock for long in the first place. We still love Facebook though and we will stand by you through the good times and the bad and the very bad!
   Rumour has it, that after entertaining us with such trivial toys like iPhone and iPad, Apple Inc. might be looking to conquer the TV Space next, with a revolutionary iTV. And in an even more controversial move it appears, that CEO Tim Cook would like to see Apple products being manufactured in the US! Industry insiders have mentioned that Apple might be on the verge of unveiling a TV-based device, late 2012 or 2013. Whether that new mysterious device, that we all simply can’t wait to get addicted to, will have the potential to shake up the cozy television content and distribution industry the way the iPod and iPhone disrupted our music and mobile world, remains to be seen.