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March 12 – According to Iranian sources, Iranian Foreign Minister Araqchi and UN Secretary-General Guterres spoke by phone on the evening of March 10 to exchange views on the latest developments regarding the US-Israeli attacks on Iran. Araqchi emphasized that Iranian schools, hospitals, residential areas, and historical sites were all deliberately attacked, an act that blatantly violates international law and basic humanitarian principles. He stated that Irans retaliation against the US and Israel was within the framework of its legitimate right to self-defense, and that Iran considers protecting the lives of its citizens an inescapable fundamental responsibility. Guterres stated that the attacks on Iran by the US and Israel were a clear and undeniable act of aggression. He stressed the need to adhere to the principles of international law, prevent further escalation, and curb the spillover of the conflict.March 12 – Economies reliant on the Gulf region face considerable uncertainty. For example, the IMF stated that talks with Pakistan were extended, partly to allow for a “more comprehensive assessment of the impact of recent global developments on the Pakistani economy.” Shankar Tareja, an analyst at brokerage firm Topline Securities, said that since Pakistan imports most of its oil from Gulf countries, the continued surge in crude oil prices could rapidly increase its import bill and exacerbate inflation in this economy, which still relies on IMF financing.March 12th - US President Trump earlier praised the International Energy Agencys (IEA) massive release of emergency oil reserves, saying it would ease pressure on energy prices while the US sought to "get the job done" in its actions against Iran. However, this clearly failed to reassure the market. Darrell Fletcher, Director of Commodities Management at Bannockburn Capital Markets, stated, "This is exactly what I was worried about regarding the IEAs release—completely ignored by the market, and now prices are even higher. This may be sending the wrong signal. What do they know that we dont?"Market news: Australia will temporarily allow higher sulfur content in fuel oil.On March 12, the Bank of Korea stated in its semi-annual monetary policy report that the pressure on the won to depreciate will gradually ease this year as supply and demand conditions improve, noting that the current account surplus was larger than expected. Hwang Kun-il, a policy board member of the Bank of Korea, stated that to assess the uncertainty of the escalating conflict in the Middle East and its impact on the domestic economy, monetary policy should remain neutral for the time being, rather than forming expectations of any particular direction. He pointed out that in March, due to the Middle East conflict, uncertainty about the economic outlook increased significantly, and volatility in financial and foreign exchange markets intensified. Bond yield and exchange rate fluctuations were inconsistent with domestic economic fundamentals, and he added that the authorities would actively take market stabilization measures if necessary.

The CEO of Robinhood refuses a merger while the company's stock price rises

Aria Thomas

Aug 04, 2022 10:51


Wednesday, the CEO of Robinhood Markets Inc. (NASDAQ:HOOD) downplayed the likelihood that the company may be acquired following the news of job cuts to reduce expenses and reverse a decline in trading activity on its platform.


In response to a smaller-than-anticipated quarterly loss and the announcement of a 23 percent employee cut, shares of Robinhood rose almost 12 percent at Wednesday's close.


During an earnings call, Robinhood CEO Vlad Tenev ruled out a potential acquisition, claiming that the retail trading platform has around $6 billion available to acquire companies "that would help us accelerate our roadmap."


Analysts questioned whether Robinhood would strike a deal with rival retail brokerage Charles Schwab (NYSE:SCHW) or crypto trading platform FTX, whose founder Samuel Bankman-Fried acquired a 7.6 percent stake in Robinhood in May. Robinhood's share price has been under pressure in recent months due to falling equity and cryptocurrency markets.


Robinhood, headquartered in Menlo Park, California, reported a 44 percent fall in second-quarter revenue, as trading volumes fell from the previous year's frenetic pace, when regular customers utilized its program to invest in so-called "meme stocks."


Despite this, investors praised Robinhood's effort to reduce expenses through layoffs, which follows a 9 percent cut in full-time employees earlier this year. In addition, the company indicated that it will modify its organizational structure in order to foster more cost discipline.


During the conference, Tenev also emphasized that a potential recession, which would be the first experienced by the company's primarily young clientele, might potentially depress platform activity.


"This excessive inflation is accompanied by high interest rates, bear markets, and low stock prices, as well as a crypto winter. Consequently, there is less money available for consumption, savings, and investment "He asserted.


Tuesday, Robinhood posted a second-quarter net loss of $295 million. Analysts predicted a loss of 37 cents per share, according to data from Refinitiv IBES, while the business recorded a loss of 32 cents per share.


Analysts commended Robinhood's efforts to reduce its expenditure, saying that the move might be advantageous for the company's faltering stock price.


Analysts at Goldman Sachs (NYSE:GS) noted in a research note, "We expect that these expenditure reductions will likely lead the company to profitability in the near future, which might boost the stock price."


Investors have shied away from high-growth technology businesses so far this year due to a risk-off environment, increased finance costs, and slow e-commerce expansion, with Robinhood and other fintech firms taking the brunt of the loss.


In its initial public offering last year, Robinhood's shares were priced at $38 a share. Since the company's NASDAQ debut, the price per share has plummeted by more than 70 percent.


Similar to other high-growth technology businesses, Robinhood has not generated a profit since its market debut; yet, Tuesday's revelation was viewed by some analysts as an indication that the company is on an upward trajectory.


"Once the market digests the'shock' from the sheer volume of the layoffs, we think that investors' focus will shift to fundamentals and the path to profitability," Mizuho analysts wrote in a research note.


In the wake of last year's meme-stock scandal, which spurred many federal and state probes, Robinhood has been subject to intense scrutiny. Beginning in October 2021, U.S. Wednesday, Robinhood said that the Securities and Exchange Commission was examining the company's compliance with short selling regulations.

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