Business Top Stories

Goldman Downgraded Nokia, Shares Shed 3%

On Monday, when the analysts of Goldman Sachs lowered the stock, the shares of Finnish’s firm Nokia dropped by 3%.

The analysts Hameed Awan and Alexander Duwan said through the note that due to the competition between Samsung, the tech giant of South Korea and Ericsson, the Swedish challengers, Nokia is facing risks of getting downgraded.

Nokia shares have performed so well in the past 6 months that it had expanded the tech sector of Europe by over 2%. After which the investors had started hoping that the involvement of 5G network will boost the revenues of the Finnish telecommunication firm. The analysts of Goldman said that the investors might have confidence in Nokia.

Analysts said that they believe that further more unity will be down sided. They mentioned by their new estimates that revenues of the lower network are going to slow down the profits of exclusive businesses and will have a direction of more traditional margin.

Goldman estimated from an analysis that both tech giants of China Huawei and Nokia have 23% each in the global market of the wireless network. While Ericsson has a 29% share in the global market. According to this, estimation is still behind these three companies as it has only 5% of the global share.

As the 5G wireless networks soon going to come in practice, Samsung is also moving forward to improve its position in the global market by providing equipment of the 5G network.

Goldman’s analysts said that Samsung is now added with the firm of South Korea and made a partnership with telecommunication operators Verizon for providing equipment of 5G network in United States. The analysts said that in upcoming years these acts will result in an increase of Samsung’s global market share which will be double of current margin and will increase the risks for Nokia.

Analysts said that they are already seeing Samsung moving towards success because it already has great quality and now it will be working with 5G operators Verizon who are famous all over the world.

Business Top Stories

Commerzbank Will Finalize On Merger Discussions With Deutsche

This week, the Commerzbank executive board is supposed to decide whether to strengthen the merger discussions with Deutsche Bank or back off from an agreement, Wirtschaftswoche, a German business weekly, highlighted this week. The magazine stated that Commerzbank’s management is planned to talk about how to continue in the merger discussions during its upcoming regular session. While supporting the news, Wirtschaftswoche cited the firm sources as well as an internal memo. Deutsche Bank and Commerzbank refused to comment on this subject.

Upon initiating official discussions with Deutsche Bank last month, Martin Zielke, Chief Executive Officer, Commerzbank, told bankers that the management is aimed at finalizing on whether to move forward with the unification in the upcoming 2–3 Weeks, two sources known with the matter proclaimed at the time. Paul Achleitner, Chairman, Supervisory Board, Deutsche Bank, proclaimed that the banks aspire to take more strong steps on the unification by late April 2019.

On a similar note, Deutsche Bank came into the news as the shares of Caterpillar, a bellwether for the worldwide economy, dropped this week as the bank downgraded the firm and other construction equipment. Deutsche Bank degraded Caterpillar to hold from purchase and slash its 12-month cost target to $128 from $152. In premarket trading, Caterpillar shares collapsed about 1.4% to $138.20.

Recently, in a note to clients, Chad Dillard, Analyst, stated that synchronized worldwide growth has collapsed. China Land Cycle will continue to grow weaker in spite of the single positive data point this week. According to Dillard, Europe is slowing more than anticipated and oversaturation is observed in the U.S. with construction equipment. In early 2018, many investors used the term “synchronized global growth” to describe an exceptional scenario where every key economy was developing at a brisk pace. That theory was found to be collapsed last year among trade battles between the U.S. and key partners, growing fears about a hard Brexit by the U.K. and a major slowdown in China economic development.

Business Top Stories

Truecaller Joins Hands With RedBus Smooth Use Experience

Truecaller, the phone directory app, has declared association with RedBus (bus ticketing platform) to provide digital ticketing experience to the consumers. Below the new association, RedBus will be accessible as a small app on the Truecaller app below the Payments segment.

The association will permit users to perform end-to-end booking payments from search to login, checkout & compare with login credentials of Truecaller, the firm claimed to the media. Apart from this, the Swedish company has incorporated its strong UPI platform in the application. This will let its consumers to perform payments squarely employing Truecaller Pay at the time of booking a ticket.

Commenting on the association, Head of Payments and VP at Truecaller, Sony Joy, claimed, “We are incredibly eager about this association with RedBus, the market disruptors and leaders of a complete mean of transport. We think we can merge Truecaller’s scale of distribution, RedBus’ expertise, and seamless BHIM UPI transactions on Truecaller Pay, to make the experience a delight for our users. This is extraordinary to us since this is first of many such associations for mini-apps where our dream is to offer super-even payment experiences on a series of scenarios with a high possibility for development.”

On a related note, Truecaller earlier claimed that it is now offering consumers the alternative to record voice calls with the help of the app. The firm discussed about this functionality in one of the support pages, offers data on how one can record calls and what edition it might operate on.

“Call recorder is lastly here. It is a function request which we look at daily so it is not a question to not include it, you ask it and we give!” claimed the company support page. The firm states that all the calls will be stored in the smartphone and is not stored on servers of the company.

Business Top Stories

Reliance Jio To Purchase Haptik For Rs 200 Crore

Reliance Jio is allegedly purchasing Haptik—one of the biggest conversational AI platforms in the world—for more than Rs 200 Crore, the media claimed. A media report claimed that the payment is likely to be concluded this week. Mentioning a firm paper, the report stated that “Reliance Jio and Swapan Rajdev & Aakrit Vaish (Haptik founders) have inked a Business Transfer Deal”.

When made contact, Haptik refused to offer an official answer on the report. A spokesperson of Reliance Jio claimed that the firm does not answer on market rumors. However, industry sources claimed that the agreement is expected to be in an early phase.

If the news turns out to be real, Jio, with its broad reach, will be in a redoubtable position to challenge Google Assistant and Amazon Alexa—both developing fast in the market through “connected” IoT (Internet of Things) devices and smart home speakers. Reliance Jio spearheaded the subscription fight in January last year with an inclusion of 93.24 Lakh users all over the nation, the highest amongst the entire telecom service supplier.

Latest data issued by the TRAI (Telecom Regulatory Authority of India) displayed that the user base of Jio was almost 29 Crore. Having increased 10 times in income in only a single year, Haptik’s clients and partners comprise HDFC Life, Edelweiss Tokio, Coca-Cola, Amazon Pay, Samsung, ICICI Bank, Goibibo, Tata Docomo, and ClubMahindra amongst others.

On a related note, Haptik earlier declared its association with Amazon Pay to drive payments for its 5 Million subscriber base. Employing Haptik, users can pay bills, book flights, and buy local offers. All these payments can now be made with the help of Amazon Pay. This makes Haptik the first application in the nation to enable 3 major sectors using Amazon Pay—Recharge, Flight Booking, and Bill Payments.

Business Top Stories

Sony Might Slash 50% Of Its Smartphone Department By 2020

Sony is supposedly gearing up to pull up some of its shares in the handset business. As per media, the major tech producer is aiming to slash almost 505 of its handset labor force by 2020. The possible layoffs can leave almost 2,000 individuals without a job, although the firm is likely to shift some of those labors to other departments. Media reached out to the firm related to the layoffs.

The reported slashes at Sony might be should not come as a shock. The Japanese tech behemoth has never been capable of getting a proper ground within the sector. The firm’s handsets have fallen almost completely out of favor. While almost 1.6 Billion handsets exported last year, only 10 Million of them were Sony handsets, as per the media reports. In spite of the grappling sales, the firm launched a new flagship handset, the Xperia 1, at MWC 2019.

The speculated layoffs will not be the first time the firm has decreased its handset department. The firm cut off 2,000 workers in 2009 after shutting down 4 plants where it made handsets. It cut 1,000 extra jobs from the division in 2015 in reaction to fewer earnings.

On a related note, only months after Activision slashed off 8% of its labor force, EA is the newest AAA games publisher to declare its personal job slashes. The firm behind Apex Legends and FIFA is letting go 350 people (almost 4% of its labor force) from publishing, marketing, and other regions, as per media reports. Those impacted have allegedly been known of looming slashes since October and will be offered severance package. Andrew Wilson (EA boss) claimed to the media that the decision might rationalize decision-making in the impacted divisions and enhance customer support. “This is a hard time. The modifications we are making will affect almost 350 people,” Wilson claimed.