Also, the U.S. Federal Communications Commission approved the $21.6 billion purchase of wireless carrier Sprint Nextel by Japan’s SoftBank and South Korea’s Samsung Electronics expects weaker than expected profit and revenue results, suggesting a slowdown in the high-end smartphone market. In addition, Cameron and Tyler Winklevoss, the twins known for their legal battles with Facebook’s Mark Zuckerberg, filed with the Securities and Exchange Commission to start a fund investing in the alternative currency Bitcoin.
- Regarding the U.S. economy – with the positive jobs growth and auto sales trend providing welcome news, the associated increase in interest rates will impact various sectors of the economy in different ways.
- Regarding the ECB and Portugal - these actions remind us that the financial crisis in the region is not over. Regarding Egypt – if conflicts continue, it is likely that heightened oil prices will persist.
- Regarding Softbank's acquisition of Sprint Nextel – this will likely lead to increased competition among wireless service providers in the U.S. market, which should be good news for many consumers.
- Regarding Samsung’s profit warning – this is another indication that the high-end smartphone market may be approaching saturation.
- Regarding the Winklevoss Twins and Bitcoin – with the twins owning about 1% of the Bitcoin market, creating this investment vehicle may make sense for them. For investors, it does not reduce the many risks associated with the Bitcoin market.