Tag Archives: twitter

Dollar Holds Steady After Rally

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: GBP Manufacturing Production @ 08.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Holds Steady After Rally

The dollar held steady versus a basket of major currencies today having retreated from the previous day’s two - week high. The dollar index was at 80.233, off a 1-1/2-week peak at 80.359 set on Monday but managed to hold on to most of the gains made following strong payrolls data last Thursday. The greenback’s lacklustre performance came as U.S. Treasury yields slipped from recent highs after Wall Street turned cautious ahead of the second-quarter earnings season starting this week. This helped support the euro, which held steady at $1.3605, after a low of $1.3576 on Monday after an unexpectedly big fall in German industrial output unsettled the common European currency. The disappointing data added to increasing signs of a weaker second quarter in Europe’s largest economy and fanned expectations the European Central Bank may have to loosen monetary policy further in the months ahead. The dollar eased 0.1 percent to about 101.82 yen, nudging away from a two-week high of 102.27 yen set last Thursday. Meanwhile, the Fed is thought likely to continue with its tapering of asset purchases and to start raising interest rates sometime next year.

Europe Shares Seen Slightly Higher With Upcoming Data & Earnings

European shares are set to open higher today on Tuesday with a series of data due for the euro zone and as investors contemplate the beginning of corporate earnings season. The FTSE is up 2 points at 6,82 and the German Dax 4 points higher at 9,910. Germany is set to receive foreign trade data which could set the tone for the day’s trading session. European stocks closed lower on Monday following weak industrial production data for Germany, which stoked fears of a slowdown in Europe’s largest economy. Investors have also been anticipating the upcoming earnings season with Alcoa - the traditional signal for the start of the season - due to release results in the U.S. on Tuesday evening. Traders are looking for profit growth from corporates to give them a reason to keep buying stocks and push benchmark indexes higher. Firms listed in the pan-European Stoxx 600 are predicted to grow 17.7 percent from the second quarter in 2013 with nine of the index’s 10 sectors set for an improvement.

Twitter Appoints Global Media Chief

According to reports, Twitter has appointed Katie Stanton its new media chief, positioning the former Google executive at the heart of its vital relationships with Hollywood and the global media industry. Twitter has reported lacklustre user and usage growth for the last couple of quarters, and its stock price has nearly halved in the last six months. Stanton will oversee Twitter’s continuing efforts to court TV networks, Hollywood studios and other media companies around the world.

That sums up today’s highlights! Stay in touch with us via our Facebook, Twitter, Google+ and LinkedIn pages for all the latest trading news! We hope you have a profitable day on the markets.

Gold Declines For Second Day In Advance of Fed Policy Meeting

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD CB Consumer Confidence @ 14.00 GMT

WHAT WE’RE WATCHING TODAY

Gold Declines For Second Day In Advance Of Fed Policy Meeting

Gold declined for a second day, trimming a monthly rise, on speculation that the Federal Reserve will further reduce U.S. monetary stimulus as it starts a two-day policy meeting today. Bullion for immediate delivery fell as much as 0.2 percent to $1,293.68 an ounce, trading at $1,295.70. Gold has advanced 7.8 percent this year in part as the tension in Ukraine spurred haven demand. With further sanctions for Russia looking certain, traders are likely to continue seeking safety in gold in the near term and if gold continues to rally, April highs at $1,331 will be the key level to look out for this week.

Euro Resilient Ahead Of Inflation Test

The euro traded at multi-week highs against the yen early today and held firm against the dollar following a surprisingly strong performance overnight as expectations for additional stimulus from the European Central Bank waned. The Euro reached a three-week peak of 142.18 yen, before slipping a touch to 141.97 yen. ECB President Mario Draghi told German lawmakers the central bank was still a long way off from implementing a bond-buying program even in the face of persistently low inflation. Still, traders said any downside surprise in the inflation numbers will weigh on the euro, especially since the market is positioning for a pick up in price pressure. German inflation figures are due later on Tuesday, ahead of the euro zone number on Wednesday. The euro was a touch firmer on the dollar at $1.3852 after recoiling from a two-week high of $1.3880, helping the dollar index recover to 79.696 from a two-week low of 79.548.

Wall Street Divided Over Twitter’s Prospects

Not so long ago, Twitter vowed not to end up like Facebook. As it prepared to debut, the last thing the company wanted was a repeat of Facebook’s rocky IPO and subsequent sell-off. Now, ironically, Twitter’s inability to replicate Facebook’s success in mobile and online may be what is holding it back. Wall Street remains divided over Twitter as the company prepares to unveil its second set of quarterly numbers. Eleven of 31 investment analysts polled by Thomson Reuters rate it a “sell,” outnumbering the seven who deem it a “buy.” The rest have a hold rating or its equivalent. That’s a stark contrast with Facebook and Google, neither of which has a single sell rating to their name. A strong quarterly showing from Facebook last week reflected an ramped-up online and mobile advertising market that’s likely to have given Twitter a boost. Longer-term, investors remain divided over whether Twitter can ever be as mainstream as Facebook. Yet $26 billion, the company still trades at 37 times sales, against 19 for Facebook, which boasts almost six times as many users as Twitter. Indeed, bullish analysts argue that the company is on the verge of realising its larger potential. Five months after its debut, Twitter stock remains above $40, versus its $26 offering price. Twitter has always seemed better placed to make money off of its smartphone user base. Although rivals Google and Facebook dominate mobile advertising, Twitter’s ad machine may get a jump-start once it places targeted ads in apps, tailored for users and their interests, which will extend its ad reach far beyond its 241 million users. Many believe that Twitter is best-placed to grab a significant slice of huge TV ad budgets because of its growing presence as the “second screen” that TV audiences turn to online, to catch up on their favorite shows. Analysts expect Twitter to have lost almost $159 million, or about 3 cents a share, on revenue of $241.47 million in the January-March quarter, according to Thomson Reuters.

That sums up today’s highlights! Keep in touch with the investment team here at Banc De Binary via Facebook, Twitter, Google+ and LinkedIn for all the latest market news. We hope you have a profitable day on the markets.

Dollar Gains But Euro Weaker As ECB Considers Easing

Here’s Friday’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Event Of The Day: GBP Current Account @ 09.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Gains But Euro Weaker As ECB Considers Easing

The dollar gained against the euro on Thursday as investors bet the Federal Reserve will start hiking rates before Europe’s central bank, which has signaled it could loosen monetary policy soon. Fed Chair Janet Yellen said that the central bank could potentially raise rates after a period of about six months from the end of its bond-buying program. That puts the first hike as early as next spring and has surprised market participants. At the same time, the euro has been under pressure on rising expectations the European Central Bank will move to further ease monetary policy in an effort to stave off deflation. The euro EUR/USD changed hands at $1.3744, down 0.3% on the day. The shared currency has weakened since ECB officials this week signaled the central bank would consider negative deposit rates and a move toward outright quantitative easing. The U.S. dollar added slightly to gains after the Labor Department said the number of people who applied for first-time weekly jobless benefits fell by 10,000 to 311,000 in the week ended March 20, the lowest level in four months. Economists had forecast claims of 320,000.

Gold Near 6-Week Low; Heading For Second Weekly Loss

Gold recovered slightly on Friday after sharp overnight declines but the metal remained near six-week lows and on track for a second straight weekly decline, as improving sentiment over the U.S. economic outlook dented its safe-haven appeal. Bullion has dropped about $100 an ounce from a six-month high in the last nine trading sessions on strong U.S. economic data and comments by Federal Reserve chairman Janet Yellen that interest rates could rise in the first half of 2015. The sharp drop in prices in the last few days is expected to bring physical buyers back into the market and help gold prices consolidate although some analysts have expressed concern that there could be a further downside ahead for gold and that the metal will struggle in the face of weak demand and forecasted rising real interest rates in the U.S.

Is Social Media The Future Of Trading?

Stock prices are driven largely by mass psychology while social media enhances people’s ability to share opinions and news on a large scale. As more individuals join the social networks Facebook, Twitter, or LinkedIn, their role in spreading information will increase. Market information will be more easily shared amongst consumers of social media, decreasing the time it takes for potential investors to react to changing conditions. Simultaneously, the reaction time of potential investors to opinions will decrease. If there are rumours surrounding a stock or other investment and no factual information to check them with, social media users will consume the rumours as a substitute for fact. The mass psychology of the investing community will be more heavily dictated by social media. Looking to the future, traders will rely on social media for trading matters more and more.

That sums up Friday’s highlights! Keep up with all the trading news for the day via Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Just A Minute!

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Events Of The Day: USD Retail Sales m/m @ 12.30 & USD Unemployment Claims @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Retail Sales & Unemployment Data Releases

Economists expect to see an increase of 0.2 percent when February retail sales are reported today, better than January’s 0.4 percent decline. The retail “control” number is expected to be up 0.3 percent. This number relates to retail sales, minus autos, gasoline and building materials and could positively influence first quarter GDP. Besides retail sales, weekly jobless claims are expected today. The unemployment rate was at 6.7 percent last month. Traders will also be watching the testimony before the Senate Banking Committee, in particular, for remarks about the Fed’s current policy and the focus on financial stability since economic normality has not yet been restored. The hearing puts the focus on next week’s Fed meeting, the first to be presided over by Fed Chair Janet Yellen. How the Fed will back off from its unemployment target of 6.5 percent is of major interest to markets and is likely to be a topic next week. Fed officials have been backing away from their target of a 6.5 percent unemployment rate set as a level to begin considering a reversal of its low short-term rate policy, stressing that it is a target, not a trigger. The Fed has the chore of moving markets away from ‘quantitative easing’ to ‘qualitative easing.’ It’s widely expected to reduce its bond purchases, or quantitative easing program, by another $10 billion next week.

New Zealand Dollar Jumps Following Key Rate Hike

The Reserve Bank of New Zealand increased its key interest rate by 25 basis points to 2.75%, in line with expectations. The New Zealand dollar rose to an intraday high late Wednesday in New York following the decision, trading at 85.18 U.S. cents versus 84.52 U.S. cents a day earlier. The decision behind the rate hike was attributed to increasing inflationary pressures. According to the central bank, in the current environment it is important that inflation expectations remain contained and to achieve this, it is necessary to raise interest rates towards a level at which they are no longer adding to demand. The central bank said its key interest rate, the official cash rate, would need to rise by about 2 percentage points in the next two years for inflation to remain near its target of 2% in the medium term.

Apple & Twitter Amongst Leaders As Tech Stocks Rise

Gains across the board lifted the tech sector on Wednesday with advances from Apple Inc and Twitter Inc. Apple rose 52 cents to close at $536.61 while Twitter rose almost 1% to close at $54.50, showing no ill effects from what the company called a “service issue” that shut down the messaging and information site for most of an hour on Tuesday. Microsoft Corp. edged up by 25 cents a share to close at $38.27. Late Tuesday, the world’s largest software company said it appointed ValueAct Capital president Mason Morfit to the Microsoft board of directors. Microsoft also declared its annual quarterly dividend payment of 28 cents a share, payable on June 12. King Digital Entertainment Plc also garnered attention as the maker of the popular “Candy Crush Saga” mobile phone game set a range of $21 to $24 a share for its upcoming IPO , which is expected in late March. The Nasdaq Composite Index ended the day with a gain of 16 points to close at 4,323.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Just A Minute!

Here’s Thursday’s ‘Just A Minute’ bringing you a 60 second summary what’s happening in the markets today:

Main Trading Events Of The Day: Several today including ECB Press Conference @ 13.30; USD Trade Balance & Unemployment Claims @ 13.30 GMT

Earnings Reports: General Motors Co; Earnings per share forecast: 88 cents. LinkedIn Corp; Earnings per share forecast: 38 cents.

WHAT WE’RE WATCHING TODAY

European Central Banks Set To Meet As Asian Stocks Rebound

A busy day on the markets with monetary policy decisions expected later in the day from the European Central Bank and Bank of England. While analysts don’t expect any action from either bank, focus will be on hints about future policy direction. Asian equities rebounded on the back of upbeat earnings reports and as investors went bargain hunting after recent selling, but caution prevailed ahead of Friday’s U.S. jobs report. U.S. indices ended little changed yesterday as investors reacted to a mixed bag of economic data. Attention now turns to Friday’s important U.S. payrolls report with traders hoping for a rebound after December’s disappointing reading. Another weak report could dent investor sentiment, which has been hurt by the turmoil in emerging markets, slowing Chinese growth and a reduction in U.S. stimulus.

Gold Retreats Again as Silver Extends Advance

Gold retreats once again, falling from the highest in over a week as gains in equities and emerging-market currencies slowed demand for alternative investments. Silver extended an advance to head for the longest rally since December. Bullion for immediate delivery traded at $1,255.67 an ounce from $1,257.92 yesterday, when prices reached $1,274.74, the highest since Jan 27. Silver rose 0.1 percent to $19.9136 an ounce, a fifth day of gains capping the longest winning run since the period to Dec. 27. Gold advanced 3.2 percent in January, the first monthly gain since August 2013 as the MSCI All-Country World Index of equities sank 4.1 percent on concern that a rout in emerging markets would worsen. Silver yesterday jumped 2 percent, the most since Jan. 10 helping send its ratio to gold to the lowest in almost two weeks today.

Twitter Investors Twitchy Over User Growth Figures

Twitter yesterday reported its slowest pace of user growth in recent company history, lowering investors’ hopes that it can sustain its rapid pace of expansion and wiping out nearly a fifth of the company’s value in after-hours trading. Although Twitter posted better-than-expected fourth-quarter revenue of $243 million in its first results as a public company, investors were unnerved by the weak user growth, as well as a severe decline in timeline views. Some analysts warned that its valuation looked increasingly bloated. On a more positive note, the efficacy of its advertising business model which places ads inside users’ timelines every time they refresh appeared to steadily improve. Overall, the actual numbers are strong in terms of fundamentals, just not as strong as some people were hoping for.

That sums up today’s highlights. Remember to watch for those important earnings announcements later today. Keep in touch with us via Facebook, Google+ & Twitter for breaking news, educational information, trader tips and more. Trade only with the experts! We hope you have a profitable day on the markets.

Just A Minute!

Welcome to Tuesday’s ‘Just A Minute’. Here’s a 60 second summary of some of the key market activities today:

Main trading events of the day: UK Construction PMI @ 09.30 GMT & U.S. Factory Orders @ 15:00 GMT

Stocks to watch: Buffalo Wild Wings Inc, Hillenbrand Inc & Sirius XM Holdings. Twitter & LinkedIn shares edge higher ahead of reports later this week.

Other trading news: Gold holds advance as concern that global growth may be faltering sends equity markets lower and boosts demand for haven assets.

What We’re Watching Today:

Market Watch: More Selling Ahead

The S&P 500 broke below an important trend line yesterday, and technicians are seeing more selling ahead. Whether this means the start of a bear market remains to be seen but at the very least, there’s going to be a very severe, very sustainable and really quite an ugly correction. The S&P 500 is down 5.7 percent since the start of the year, and it fell 2.3 percent Monday. The S&P ended the day at 1741, and selling accelerated when it broke through 1770, a level it tested and held last week. According to the Stock Trader’s Alamanc, “A bear market requires a 30 percent drop in the Dow Jones Industrial Average after 50 calendar days or 13 percent decline after 145 calendar days. Reversals of 30 percent in the Value Line Geometric Index since 1965 also qualify.”

Eurozone:

Deflation fears: Will The ECB Pull The Trigger Again?

Another low inflation shock in the eurozone has increased the pressure on the European Central Bank (ECB) to act, with some economists arguing that a rate cut could be announced as soon as this week. The focus will be on ECB President Mario Draghi this Thursday following the central bank’s policy meeting, with economists expecting him to act sooner rather than later. Concerns that the 18-nation currency bloc was headed for deflation were boosted further on Friday, when official data revealed that inflation fell to 0.7 percent in January – below the 0.9 percent expected by economists, and significantly lower than the ECB’s 2 percent target. Although the ECB remains in a wait-and-see mode, it is likely that it will be forced to act and this is only a question of time.

Tech:

Investors Eye Microsoft Breakup

Microsoft’s new leadership could almost double the company’s valuation by parting with a good chunk of the businesses it uses to court consumers. Offloading units such as Xbox video-game consoles and the Bing search engine may be the change Microsoft needs to stimulate growth as it prepares to make Satya Nadella chief executive officer. Some analysts believe that Microsoft should go further by also splitting off Windows and smartphones to focus on providing services to business customers. Former CEO and co-founder Bill Gates is weighing giving up his title as chairman, but is likely to remain involved in product development. Stocks are cheap – keep an eye on them!

That sums up Tuesday’s highlights! We wish you a profitable trading week. Remember to keep in touch with us on Facebook, Google+ & Twitter for all the latest news, information, tips and more! Trade with the experts and become a superior trader!

Twitter mood can predict the stock market. TWEET!

Stock market prediction has attracted a lot of attention from scholars as well as businessmen over the years. But can the stock market really be predicted? Many expert traders claim to know how to predict whether it will rise or fall at any particular time, but there are few - if any - who can actually do it successfully.

Why? Because conventional economic theory, otherwise known as Efficient Market Theory, states that the movement of prices in a market follow a random pattern, making it impossible to predict with an accuracy greater than 50 per cent. This hypothesis, however, no longer holds much value, since numerous studies have shown that stock market prices are not entirely random, and may actually be linked to mass psychology and other related factors. If this is true, then there may essentially be a way to assess the mass consciousness for predictive signs.

Behavioural economics tells us that emotions can profoundly affect individual behaviour and decision-making. But does this apply to societies at large; can societies experience mood states that affect their collective decision making? Moreover, is the public mood correlated or even predictive of economic indicators? Researchers believe so, and have stated that they have found such a predictor buried in the seemingly endless chatter that springs from Twitterverse.

The recent excitement around the subject of Twitter trading stems from a paper by academics Johan Bollen and Huina Mao of Indiana University, and Xiao-Jun Zeng of the University of Manchester. The question they asked is whether any human states correlate with stock market prices, since it is not unfeasible that the rise and fall of stock market prices may be influenced by the public mood. Bollen and his team took 9.7 million tweets posted by 2.7 million tweeters between March and December 2008 and looked for correlations between the GPOMS indices and whether Dow Jones Industrial Average rose or fell each day. Their illuminating conclusion is that there truly is a correlation: calmness. The calmness index appears to be a good predictor of whether the Dow Jones Industrial Average goes up or down between 2 and 6 days later. According to the report: “We find an accuracy of 87.6 percent in predicting the daily up and down changes in the closing values of the Dow Jones industrial average.” Their report clearly found that gauging the investing public’s mood can be a startlingly predictive mechanism for the stock market. In order words, Twitter mood can predict the stock market.

How can it be explained? “One idea is that the stream of thought is representative of the mental state of humankind at any instant. Various groups have devised algorithms to analyse this data stream hoping to use it to take the temperature of various human states,” reports MIT Technology Review. Given the amount of irrelevant nonsense on Twitter, it’s natural to be highly sceptical of the strategy. But if you think through the logic, analysing Twitter data isn’t such a strange idea. A basic premise of behavioural economics is that the markets aren’t perfectly rational machines, but are expressions of human emotions like greed and fear. If you agree with that premise, and are looking for an immediate way to measure and keep track of those human sentiments, then Twitter is one of the greatest tools ever invented.

A decade ago, anyone who suggested using social media to predict market movement would have been looked upon as if they had landed from outer space. Richard Peterson, managing director of Santa Monica-based MarketPsych, experienced just such a reaction eight years ago when he stated that social media could be mined for data about what people are thinking and feeling, and that this could translate into powerful investment ideas. “People would say to me, ‘You’re crazy,’” says Peterson, who has a post doctorate in neuro-economics from Stanford University.

But with usage of social media like Twitter exploding in recent years, analysts now have a real-time reflection of popular sentiment. As a result, Peterson’s MarketPsych serves up data to hedge funds and research firms like Titan Trading Analytics. “The importance of social media aggregation, and how that might influence the price of a stock, cannot be ignored,” said the latter company’s CEO John Coulter. “We’ve chosen to use it as one of many indicators, providing traders with alerts on events and by flagging socially expressed emotions which haven’t been picked up upon by traditional news outlets.”

Nobody is laughing at Peterson today. Although he is glad that investment managers are now finally taking him seriously, on the downside there is more competition as more and more people are trying to unlock the secret of this trading strategy from the billions of tweets out there. The trick is how to sift through that data effectively and make some sense of the hundreds of millions of tweets generated every day. Peterson, for example, filters the data using 1,500 different factors and keywords to track global moods. His take on the markets: if the public is overly bullish, it’s time to be cautious. If it is extremely gloomy, on the other hand, it might be time to snap up a bargain.

If you feel inspired, take a moment, however, before you start examining your own Twitter feed for brilliant investment ideas. Unless you are armed with highly complex mathematical models and teams of analysts who can dive into social-media data and asses the global mood from billions of tweets, you are going to find it tricky, as an individual investor, to make any sense of the collective tweets of 100 million active Twitter users.

Nevertheless, social-media sentiment analysis is immediate and ongoing, and the Twitter-analysis trend seems to be just gearing up. “It won’t make you a millionaire overnight, but it does work,” says Richard Gardner, president and CEO of Scottsdale, Arizona-based Modulus Financial Engineering, which collects historic Twitter data for hedge funds and research firms to crunch. “The markets are moved by emotion, and I think this is going to be the future of trading. You can actually see global moods moving up and down in real time.”

Pssst…Do You Want To Know A Secret?

If you haven’t yet heard of it, you may need to listen more closely as social media site Whisper.sh has taken off in a big way in the 18 months since its inception. It now boasts three billion page views a month.

The site allows users to post ‘secrets’ or thoughts anonymously, through the use of pictures with bold eye-catching quotes at the top, in a similar way to internet ‘memes’ – which are described as units for carrying cultural symbols or ideas that virally spread across the internet. Users tend to use the mobile app for an average of 20 minutes a day, checking content between 8 and 10 times a day, and are aged between 17 and 28, and the majority, around 70 percent, are female.

Jeremy Liew of Lightspeed Venture Partners, the first investor in popular photo messaging application Snapchat, is excited about Whisper’s incredible growth and invested $3 million in Whisper in April this year. “Three billion page views a month is a shockingly big number for a company only 18 months old,” Liew has claimed.

Where Whisper differs from Facebook, Twitter and Pinterest, is that while these sites encourage people to post things they are proud of, like party pictures and holiday snaps, Whisper is where users go to spill the secrets they would normally only tell to a close friend. Other users can post supportive comments, and users can respond to one another. Presently, users are able to download the app free but have to pay to send messages to other users.

Do you have a secret? Shhhh….

The Explosive Rise Of Chinese Social Media

Regular readers of Coffee Break may recall recently reading about the phenomenal growth of China’s Tencent and its mobile messaging app. It seems that emerging economy, China, continues to go from strength to strength…especially where the internet is concerned.

For both Chinese internet companies and users, these are undoubtedly good times. While the government continues an unprecedented crackdown on outspoken liberal bloggers, e-commerce sites are thriving with about 10 percent of China’s retail sales now conducted online. About 600 million people have internet access in China, with 450 million smartphones and tablets in regular use. None of the leading Chinese internet companies are state-controlled, and those listed overseas have a combined market capitalisation approaching $300 billion.

Sina Weibo is a Twitter-like site, with more than 500 million registered users. Even British Prime Minister David Cameron has signed up, albeit ahead of a planned diplomatic visit to China. It is popularly used as a news feed and as a way to follow celebrities, opinion-makers, and even government press offices commenting on the daily news. Meanwhile, popular musician and heartthrob Li Yundi also took to Weibo last week to introduce fans to his new girlfriend which at the time was the most-read post on the site!

With so many news junkies tuned into Weibo, traditional cost-per-click advertising and ads imported from e-commerce sites such as Taobao.com have high growth potential as an advertising-based business model. Tencent Weixin as we previously reported, also goes from strength to strength as it could potentially charge for subscriptions to online games, specialised news services, or further value-added services such as e-coupons to be used in online stores.

Predictions are looking rosy for players in the Chinese internet market as they continue to build significant global businesses of increasing value. It seems that monetising Chinese social media knows no bounds!

Nasdaq Secures Listing for New American Airlines Group Inc. Post Merger

As American Airlines (AAMRQ) and US Airways Group Inc. (LCC) have been finalising the details of their mergers, American stocks exchanges and indices have been battling it out on gaining the new listing, with Nasdaq emerging victorious at the end, a huge victory after the index recently failed to secure Twitter Inc. (TWTR)’s Initial Public Offering.

The new firm will operate by the name American Airlines Group Inc. and have AAL as its trading symbol, a statement revealed today. A U.S. antitrust lawsuit was settled this week between AMR Corp. and US Airways, eliminating last obstacles as AMR Corp. will receive a bankruptcy exit ruled by a judge on 25th November.

Nasdaq’s confidence has been boosted once again with the listing of the new American company after last year’s unsuccessful attempt at securing Twitter, the greatest and most important IPO in the technology sector since Facebook Inc. On its first day of trading, 7th November, Twitter, which chose to trade on the New York Stock Exchange, sky-rocketed 73 percent.

Ed Stewart, a US Airways spokesman with Fleishman Hillard Inc. said today that “while Nasdaq has historically had a reputation for being a tech-centric exchange, it has done a great job of attracting other industries and is simply a better fit for the new company and the direction we want to go,”

American and US Airways anticipate the completion of their merger in December. The merged airline will distribute control between AMR bankruptcy creditors, who will own 72 percent of the new shares, and the existing US Airways holders, who’s share amounts to the other 28 percent. AMR’s headquarters in Fort Worth, Texas, will serve the new company in the same capacity as well.

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