Category Archives: Business

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Elon Musk collapses Tesla shares

Tesla CEO Elon Musk has collapsed the company’s shares ahead of Battery Day, the day of the presentation of new technologies related to batteries, which will be held on September 22. Writes about this CNBC.

While Tesla buys batteries for its electric cars from third-party manufacturers, for example, Panasonic. Analysts hoped the company would unveil its own battery pack on September 22, which would allow Tesla to maintain an edge over its competitors in the electric car market.

However, on the eve of Musk allayed the hopes of investors. The head of the company said that the technology unveiled on Tuesday will have a long-term impact on the production of the Tesla Semi electric truck, Cybertruck pickup truck, and Roadster sports car. “But what we show will not go into mass production until 2022,” Musk wrote on Twitter.

He added that while Tesla is increasing its purchases of batteries from Panasonic, LG, and CATL, and is also considering the possibility of purchasing them from other partners. However, even with the growth of battery purchases, the company still predicts its shortage by 2022, if Tesla does not establish its own production.

As a result of Musk’s statement on Tuesday after the opening of trading in the US, Tesla shares fell 6 percent, according to Nasdaq data. At the time of this writing, the cost of one paper was $424. Despite the drop, the securities still cost four times more than at the beginning of the year.

The Italian authorities wanted to get rid of the share in the oldest bank in the world

The Italian authorities wanted to sell a controlling stake in the troubled Banca Monte Dei Paschi di Siena, which is the oldest operating credit institution in the world. About this writes Bloomberg with reference to sources.

The Italian authorities from 2017 own 68 percent of the shares of the credit institution. According to the interlocutors of the agency, the Ministry of Finance is considering selling its stake in UniCredit. The parties have already held preliminary discussions on the idea, but the sale of UniCredit is only one of the possible scenarios. According to Reuters, the Italian authorities want to close the sale deal by the end of 2020.

To make Banca Monte Dei Paschi more attractive to the buyer, the Ministry of Finance is going to transfer 8.1 billion euros of problem debts of the state-controlled asset management company AMCO. In this case, the problem debt of Monte Dei Paschi will be reduced from the current 12 percent to 4.

The Italian government saved the world’s oldest credit institution in 2017 by buying 68 percent of its shares for 5.4 billion euros. The bank faced a capital hole of more than 8 billion amid low-interest rates in Europe, poor profitability, weak economic growth in Italy, and mistakes by top management.

Bank Monte Dei Paschi was founded in 1472 in Siena. It issued cheap loans to the least wealthy sections of the population of the city-state.

Banks launder doubtful money

A number of major banks, including Deutsche Bank and the Swiss branch of the British bank HSBC, appear to have entered into questionable transactions with customers already convicted of money laundering. This is evidenced by documents of the U.S. Agency for Financial Crimes FinCEN, which became public thanks to publications of journalists from ICIJ (International Consortium of Investigative Journalists). What measures can prevent vicious practices in which banks are complicit in concealing criminal fraud and corruption?

We need a European Finance Sheriff!

According to the newspaper Taz, such a practice should be fought against at the European level:

“We need European financial policy, the creation of which is insisted on by a group of MEPs headed by Green Sven Gingold — and harsher penalties! Anyone who, figuratively speaking, carries suitcases of money to criminals is guilty of obstructing justice and aiding and abetting. And if these charges cannot be brought against individuals, then the entire organization must be punished, and so severely that money laundering as a business model is no longer possible. But to deprive banks of their licenses, as required by the SPD, is just a populist chatter, because criminal banks, operating on a global scale, due to their influence and confusion of the device are protected from this.

Obstacle — bank secrecy

Gazeta Wyborcza notes with regret that little is known about this practice in Poland — and it is unlikely to be made public:

“A great many reports have already been written about why Russian oligarchs are trying to legalize their dirty deals in Latvia or Estonia. All these reports emphasize that the Baltic states are such an attractive place for such machinations precisely because they have a well-developed banking system, stable economy, and — most importantly — a powerful Russian diaspora… The problem is that the first two signs are also evident in Poland. So, is there any reason to believe that this practice is not implemented in Poland either? One of the FinCEN documents, available to our editorial office, confirms that money from the former USSR countries is also laundered on the banks of the Vistula. We just don’t know much about it: everything is under a reliable cover of financial and bank secrecy.