Last Week in Numbers: Tesla To Go Private?
Tesla’s founder, Elon Musk, revealed on Twitter that he is considering taking Tesla private at US$420 per share. On the same post, he said that funding has been secured, causing the share to jump to close at US$379.57 on Tuesday. But analysts and investment bankers have reacted with skepticism saying, Musk, with his net worth of US$22 billion, would find it difficult to raise the US$72 billion to make the deal happen. There are also big logistical and legal challenges when it comes to buying out smaller shareholders.
Meanwhile, blue-chip property companies in Singapore did well over the second quarter of 2018. CapitaLand Limited (SGX: C31) posted a 4.4% increase in profits on the back of contributions made from newly acquired properties. City Developments Limited (SGX: C09) reported an 80% surge in net profit to S$204.8 million, due to higher profits from its development projects. But with the effects of the additional property cooling measures put in place in early July, there might be a slow down in residential unit sales and new residential development projects in the near future.
A new app was launched this week that allows users to pay in more than 150 currencies when overseas or shopping online without incurring currency conversion or transaction fees. The app, a collaboration involving EZ-Link, You Technologies Group and Mastercard comes with a contactless Mastercard prepaid card, which enables users to pay at over 30 million Mastercard merchants worldwide. Users can also store up to 10 currencies in their wallet.
China reported a US$28.1 billion surplus with the US in July, marginally below June’s US$28.9 billion. However, it was still 11% higher than the corresponding period last year. China’s global trade surplus also fell from US$41.5 billion in June to US$28 billion in July. In total, exports surged 12.2% in July, while imports jumped 27.3%.
The above comes as the trade conflict between the US and China heats up. On July 6, US imposed 25% tariffs on US$34 billion on Chinese imports, with Beijing retaliating in kind. US officials have now said they would add another 25% levy on US$16 billion worth of imports starting on August 23. It remains to be seen what sort of impact the new tariffs will have on trade.
Singapore celebrated its 53rd birthday on Thursday, 9 August. Around 25,000 spectators attended the National Day Parade, with many more lined along the Marina Bay area to catch a glimpse of the fireworks and processions. Among the highlights of the show were the Red Lions, who jumped from 3,800 meters in the air, the highest ever for an NDP, and an aerobatic display by the Singapore Air Force. A total of 21 aircraft from the Republic of Singapore Air Force took part in the display.