In this weekly series, we break down seven different things every person needs to know from the world of finance news. We're taking complicated stories and making them simple, easy to understand, and quick to read. Perfect for the man who wants to be in the know, but doesn't have the time to obsess over global markets.
1.) US Companies Reported Disappointing Profit Numbers
- Apple, American Express, Microsoft, Caterpillar and IBM all disappointed in some form or another--leading the US stock market to sell off this week.
2.) Update On Greece
- Greece was lent money by the European Union and paid back some of its loans to its creditors.
- It also passed reforms through its parliament that pave the way for more loans from Europe--the crisis appears to be over, for now.
3.) Toshiba Scandal
- Toshiba was found to have massively overstated its profits for a number of years in a scandal that has rocked the usually staid corporate Japan.
- The CEO resigned.
4.) GoPro Is Absolutely Killing It
- GoPro posted profit numbers strongly beating expectations, showing how innovation – its new cameras – can lead to outstanding profit growth.
5.) Apple Might Be Getting In The Automotive Game
- Apple hired a top executive from Fiat Chrysler, further spurring rumors that it is working on an electric car to rival Tesla.
6.) Obamacare Is Shaking Up Private Healthcare
- Health insurer Anthem is acquiring its competitor Cigna in a huge megamerger (it’s a $54bn deal).
- Obamacare got upheld by the US Supreme Court and it’s leading to big mergers in healthcare insurance.
7.) England Is Concerned About Inflation
- The Bank of England indicated that it is concerned about inflation and will likely follow the US Federal Reserve in raising interest rates later this year or early next year.
- Higher interest rates generally act as a headwind to stock prices.