The end of the Iranian crisis

It seems that Iran will bearth soon and move on selling their oil in the global market as the White House press secretary Josh Earnest told reporters it is likely that negotiations with Iran aimed at reaching a final agreement on a comprehensive nuclear deal will likely extend past Tuesday’s deadline. The two sides reportedly remained at odds on the pace of easing longstanding economic sanctions once a deal is reached. U.S. president Barack Obama has until July 9 to present the deal to Congress for review. Western powers would like the sanctions against Iran to be removed gradually, while Iran president Hassan Rouhani has argued for immediate removal of the crippling restrictions.

But this news reflect negatively on the oil price today as the Crude futures fell sharply on Monday plunging to monthly low, as stalled negotiations regarding the Iranian Nuclear deal and the Greek Debt crisis continued to weigh.

On the New York Mercantile Exchange, WTI crude for August delivery fell 1.35 or 2.24% to 58.30 a barrel. At one point, Texas Long Sweet futures dipped to a session-low of 58.04, its lowest level since June 5.

On the Intercontinental Exchange (ICE), brent crude for August delivery dropped 1.28 or 2.02% to 61.98 a barrel. On Monday, brent futures traded between 61.36 and 62.96, moving lower for the fourth time in five sessions. The spread between the international and U.S. domestic benchmarks of crude stood at 3.68, slightly above Friday’s level of 3.63.

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The Eurozone shocked by the Greece

The world wild market seem to be on hold waiting for the end of the Greece drama and want to know how they going to solve that problem as soon as possible.

The time is passing and the investors eyes on the news coming up, but the European stocks dropped on Friday, as concerns over a potential Greek default weighed heavily on equity markets as negotiations stalled on Thursday.

During European morning trade, the EURO STOXX 50 declined 0.69%, France’s CAC 40dropped 0.63%, while Germany’s DAX 30 slid 0.43%.

Market sentiment was hit as negotiations between Greece and its creditors broke down once again on Thursday.

Time is running out for the Greek government to secure a deal to unlock bailout funds ahead of the looming deadline for a €1.6 billion repayment to the International Monetary Fund on June 30.

If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.

Financial stocks were broadly lower, as French lenders BNP Paribas (PARIS:BNPP) andSociete Generale (PARIS:SOGN) declined 0.58% and 1.10%, while Germany’s Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) slid 0.29% and 0.67%.

Among peripheral lenders, Italy’s Unicredit (MILAN:CRDI) and Intesa Sanpaolo(MILAN:ISP) dropped 0.85% and 0.66% respectively, while Spanish bank Banco Santander (MADRID:SAN) lost 0.88%.

Elsewhere, K+S AG skyrocketed 31.08% amid reports the German potash supplier is likely to reject a takeover offer from Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. because it deems the bid to be too low.

In London, commodity-heavy FTSE 100 declined 0.61%, weighed by sharp losses in the mining sector.

Shares in Rio Tinto (LONDON:RIO) and Anglo American (LONDON:AAL) tumbled 1.13% and 1.27% respectively, while Bhp Billiton (LONDON:BLT) and Glencore Xstrata (LONDON:GLEN) both lost 1.42%.

Financial stocks added to losses, as the Royal Bank of Scotland (LONDON:RBS) slid 0.49% and Lloyds Banking (LONDON:LLOY) dropped 0.73%, while Barclays(LONDON:BARC) and HSBC Holdings (LONDON:HSBA) retreated 0.81% and 0.89%.

On the upside, Tesco (LONDON:TSCO) Plc surged 2.99% after the U.K.’s biggest supermarket chain posted a smaller than expected decline in quarterly sales.

Alfa Romeo will compete again

In a beautiful and sporty desaign, Alfa Romeo promote for it is new model of Giulia Sedan as the Alfa Romeo fans awaiting a long-promised revival can take solace in the unveiling of theGiulia sedan, even though the effort is probably too little, too late for the sporty Italian brand to achieve its growth targets.

For more than a decade, Fiat Chrysler Automobiles NV Chief Executive Officer Sergio Marchionne has been vowing to restore Alfa Romeo as a premier auto brand. The mid-sized sedan, which was unveiled Wednesday near Milan and will take on models like BMW’s 3-Series at some point next year, is the first serious effort to win more customers. Even so, uncertainty about follow-up vehicles and a thin presence outside of Europe means those ambitions are likely to go unfulfilled by 2018.

“Despite our love of Alfa’s past, we’re unconvinced by its future,” said Max Warburton, an analyst at Sanford C. Bernstein Ltd. The latest push “is going to swallow a significant sum of capital and has no chance of earning any money in its first product cycle.”

The Giulia and an Alfa Romeo sport utility vehicle due next year are critical tests for Marchionne. His plan is to produce upscale models to fill under-used and unprofitable factories in Italy. The brand, which currently sells two hatchbacks and a limited-runsports car, is supposed to anchor this strategy with eight new models by 2018 through investments of as much as 5 billion euros ($5.6 billion).

Facebook targeting the South African market

Let us face it. More Facebook, More data usage.

So if you provide access to the internet everywhere, everyone can enjoy the facebook and it’s applications.

That is why Facebook Inc. will offer customers of Cell C Pty Ltd. access to its free application in South Africa as the social-networking service seeks to add users in the continent’s most developed economy.

The service will allow Cell C users to see Facebook and about 30 websites offering information about healthcare and jobs without being charged for data, Markku Makelainen, Facebook’s director of global operator partnerships, said in an interview on Wednesday. It will be available from July.

“It’s a method for users who want to try out free basic services on the Internet, they can do it without any cost and then they can basically move up the ladder to paid services,” Makelainen said at Cell C’s Johannesburg headquarters. “We want to take away the fear of use. Less than half of the population is connected.”

Facebook Chief Executive Officer Mark Zuckerberg is pushing to bring online access to people who can’t afford it around the globe. More than 1.1 billion people worldwide don’t have access to the Internet, according to estimates by McKinsey & Co.

Customers of Cell C, the third-largest South African wireless carrier, will have free data access to the full version of Facebook’s application for two months before downgrading access to a more basic version of the service.

Crude Oil dropped under $60

Crude Oil lost it is yesterday gain as it rose up to $61.49, But in Wed fell to $59.81, as developments in Iranian nuclear talks and a continued decline in U.S. crudestocks weighed.

On the New York Mercantile Exchange, WTI crude for August delivery slid 0.76 or 1.25% to 60.25 a barrel. For the day, Texas Long Sweet futures wavered between 59.81 and 61.51 after falling sharply from near-session highs in U.S. morning trading. Still, Wednesday’s intraday high marked its strongest level in more than three weeks.

On the Intercontinental Exchange (ICE), brent crude for August delivery dipped 0.96 or 1.49% to 63.49 a barrel. Brent futures briefly ticked above $65 a barrel before dropping significantly in the European afternoon trading session.

Crude prices plunged after the U.S. Energy Information Administration said in its Weekly Petroleum Status Report that crude inventories nationwide fell by 4.9 million barrels last week, marking the eighth consecutive report of weekly declines. The draw reduced U.S. crude stockpiles to 463.0 million barrels, a level not seen for this time of year in at least 80 years. Analysts had expected a draw in the range of 2 to 3 million barrels following the American Petroleum Institute’s weekly supply report on Tuesday evening.

While the significant draw should be considered bullish for WTI crude futures, crude stockpiles typically diminish at this time of year during the peak of the summer driving season. Refineries operated at 94.0% of their operable capacity for the week ending on June 19, up slightly from 93.1% a week earlier, as disruptions from Tropical Depression Bill weighed.

Production, meanwhile, rose by 76,000 barrels per day in the 48 lower states to 9.187 million bpd. Industry observers are placing a close eye on output as the U.S. remains embroiled in a protracted battle with Opec for global market share.

Also, OPEC nations’ oil revenues dropped last year below the psychological $1 trillion mark for the first time since 2010, in the clearest sign yet of the economic impact of lower prices for oil-rich nations. 

The Organisation of the Petroleum Exporting Countries said on Wednesday in itsannual statistical report that its 12-members earned $964.6 billion selling their petroleum, down 12.7 per cent from $1.1 trillion in 2013 and the lowest amount since 2010. Oil export revenues hit a nominal record of $1.2 trillion in 2012, according to OPEC data.

Saudi Arabia earned the largest share of OPEC oil revenues, with $285 billion, followed by the United Arab Emirates with $107 billion.

Iran oil export revenue fell to $53.6 billion, the lowest since 2005, due to the impact of European and U.S. sanctions on its ability to sell petroleum.

Toyota driving the future

Toyota Motors, The giant automobile company came up with new model and new strategy for their shares as shareholders last week approved the issuance of 50 million new shares — and not just any new shares. The securities are a curious hybrid: They look like stock but behave more like convertible bonds. If you’re interested in the quality of corporate management, it’s an innovation worth watching.

The new “Model AA” stock, named after the Japanese auto company’s first passenger car, locks owners in for five years. The shares carry voting rights but aren’t listed on any exchange. At maturity, holders can sell the shares back to the company at the issue price or convert them to ordinary stock. During the lockup, Toyota will pay a guaranteed dividend that increases each year.

What does that have to do with corporate management? The idea, according to the company, is to raise patient money so Toyota can invest in the car of the future. “Patient” is the key: The firms’ managers see locked-up investment as an antidote to the short-termism of the stock market. Sheltered from some of the pressure to drive the share price up immediately and fend off activists — even at the cost of longer-term success — they will be able to look further ahead and do a better job.

So they say. Many investors have questioned that rationale, partly on grounds of timing, and their suspicions aren’t unwarranted.

A new Japanese law aims to encourage companies to sell large blocks of shares they hold in one another. Such cross-shareholdings have long allowed Japanese managers to shield themselves from activist investors, notably U.S. hedge funds. The new shares will partly offset the reform. Model AA shares are less suited to hedge funds and more to Japanese retirees, who’d be less of a nuisance to managers.

Toyota says it isn’t trying to bypass the new corporate governancerules. This would be easier to believe if the company planned to sell the new shares to international investors rather than just Japanese investors. Toyota could go some way to answering its critics by making that change.

But here’s the larger question: How much protection do the (supposedly) far-sighted managers of public companies need from their (supposedly) short-termist owners? Plenty of evidence suggests that short-termism is a real problem and that corporate-governance reform needs to address it. But it would be easy to go too far and give lazy, overpaid managers a quiet life.

There’s no clear answer, and that’s exactly why experimenting with different forms of financing is so valuable. If the hybrid concept works, it will give Toyota a long-term advantage, and as that becomes apparent, other companies could follow its lead.

The exact features of Model AA shares won’t be suitable for every company, but the innovation is welcome. Let companies experiment with different combinations of lockup periods, voting rights, dividends and rights to cash flows. Let shareholders choose how long they are willing to commit themselves in exchange for protection from short-term risk.

Crude Oil under $60 in Friday.

Oil price fell sharply today to $59 after the Saudi Arabia oil minister Ali Al-Naimi said in St. Petersburg that his country has roughly 1.5 million-2 million barrels of daily reserves and is ready to increase production if demand rises.

Crude plummeted on Friday as WTI futures closed below $60 for the first time in nine sessions, amid a dwindling U.S. rig count and bearish strategic positioning from Saudi Arabia’s energy minister.

On the New York Mercantile Exchange, WTI crude for August delivery plunged 0.88 or 1.44% to 59.95 a barrel. Texas Long Sweet futures traded in a tight range between 59.25 and a peak of 60.90. For the week, WTI crude declined more than 0.75% falling back slightly after surging 1.50% in the week ending June 12.

On the Intercontinental Exchange (ICE), brent crude for August delivery fell 1.23 or 1.91% to 63.03 a barrel. Brent crude also fell for the week, plunging more than 2.5% from its level at Monday’s open. The spread between the international and U.S. domestic benchmarks of crude stood at $3.08, slightly below its level of $3.25 on Friday morning.

In U.S. afternoon trading, crude prices extended earlier losses after oil services firm Baker Hughes (NYSE:BHI) said the U.S. oil rig count fell by four last week to 631, marking the 28th consecutive week of weekly declines. U.S. oil rigs are now at their lowest level since August, 2010. The pace of decline, though, continues to slow as last week’s draw represented the smallest reduction since December.

Industry observers have placed less emphasis on U.S. rig counts in comparison with recent years, as U.S. shale producers continue to remove inefficient rigs while maintaining output. A controversial decision by Opec in November to keep its supply ceiling above 30 million barrels per day triggered an arms race of sorts with the U.S. for global market share.


Is Greece seeking Russia’s help ?

The close look to Greece case, you can tell ” there is no way to solve that problem “, because the money going out of the bank without returning.
But maybe the new deal with the Russian government will help and provid some support.

Also, The ECB will review Greece’s emergency funding for its lenders again on Monday, a European Union official said, after the limit on the cash was raised on Friday for the second time in three days.

The Governing Council increased the cap on Emergency Liquidity Assistance in a telephone conference, other people familiar with the matter said, without specifying the amount of the rise. All the people asked not to be named because the discussion was private. An ECB spokesman declined to comment.

The ECB’s decision to revisit the ELA discussions on Monday is a signal to Greece that its situation is serious, the official said. European leaders will hold an emergency summit the same day, though concern is rising that talks on Greece’s bailout program will fail to avert a government default that tips the nation’s lenders into insolvency.

“The ECB’s decision to increase the ELA allowance today suggests that the Greek banking system will receive whatever support is needed to allow the political process to work through to the end of the EU leaders’ summit,” said David Mackie, an analyst at JPMorgan Chase Bank in London. “Unless Greece reaches a deal by the end of Monday, capital controls look likely to be needed next week, as Greek banks reach the limit in terms of collateral availability.”

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Digital hot war between Russia and USA

Years ago we’ve been concerning about the what they called it the Cold War between Russia and the United States of America and the constant nonviolent state of hostility between them.

But recently, The digital war getting hotter in new dimension between them as the Russian companies are increasingly buying homegrown software to avoid international sanctions, posing a challenge to the likes of Microsoft Corp. and Oracle Corp. in the country’s $3 billion local market.

OAO Sberbank’s life insurer in February started an online service running local operating system Rosa-Linux using an open-source PostgreSQL database, skipping alternatives from Microsoft, Oracle and International Business Machines Corp. Late last year, OAO Gazprom’s oil division completed testing of GeoMate, its own software used to analyze geological data and designed to replace applications from companies including Emerson Electric Co.

About three-quarters of an estimated 157 billion rubles ($2.9 billion) in Russian software spending last year went to imports. That share will probably fall by several percentage points in 2015, according to researcher IDC. President Vladimir Putin’s government has laid out a plan to cut foreign program reliance to less than 50 percent by 2025.

While it’s difficult to fully wean off imports, “companies are switching to local software in those business processes where they can,” said Elena Semenovskaya, a Moscow-based analyst at IDC.

That presents a hurdle for SAP SE, Microsoft and Oracle. The three had combined sales of 59 billion rubles in Russia last year, according to State Duma estimates. Even without Putin’s domestic preference, the country’s software market will probably shrink by 10 percent this year as the economy slips into recession, while a weaker ruble also makes foreign programs relatively more expensive, IDC said.