This week’s stories look at JPMorgan’s plan to introduce JPM Coin, Amazon trying to be greener, and the potential acquisition of Osram. (3:15 min read)

This information does not take into account your personal objectives, financial situation or needs. You should consider if the relevant investment is appropriate having regard to your own objectives, financial situation and needs.


1. JPMorgan gets serious about blockchain

There’s been a lot of buzz around JPMorgan’s recent announcement confirming the company has developed its own digital currency – JPM Coin.

While the advancement has been labelled as a cryptocurrency by some, it’s far from it in practice.

This leap in blockchain adoption is significant for the US bank, particularly since they manage over $2 trillion in assets.

What does it mean if you’re invested in stock markets?

JPM Coin is a prime example of large institutions putting blockchain technology to good use: to facilitate more efficient, secure and faster transactions.

While blockchain became more widely known as a result of the crypto boom, it’s these private sector applications which are helping validate its far-reaching potential.

Companies with the ability to adopt blockchain effectively will have the upper hand moving forward, especially if they deliver cost and time savings to customers in the process.

What does it mean if you’re invested with AtlasTrend?

Much like JPMorgan’s CEO, we’ve been mostly critical of cryptocurrencies like Bitcoin due it being a highly speculative investment.

However, we have always remained acutely aware of the many useful applications of its underlying technology – blockchain.

We continue to be on the lookout for companies using the technology in an innovative, commercially-viable way.


2. Amazon enters the green economy

The world’s largest online retailer has committed to target 50% of all shipments being carbon neutral by 2030.

Amazon’s latest project – referred to as “Shipment Zero” – is part of a wider, impact-driven mission for its entire global infrastructure to run exclusively on renewables.

As early as this year, the company will also start to publicly report on its carbon footprint.

What does this mean if you’re invested in stock markets?

There is an ever-increasing impetus on large companies to disclose their environmental impact, no matter the product or service offered.

You could liken it to an environmental license to operate, and is likely to have vast commercial consequences for those who lag behind.

Investors should keep a close eye on these companies, as the expectation to deliver financial returns and serve a social purpose slowly becomes the norm.

What does this mean if you’re invested with AtlasTrend?

We believe in supporting companies who measure their impact and report on it transparently.

Companies which go a step further and build their products and services around solving universal challenges (like climate change) are also worthy of investment attention.

We built the Clean Disruption Fund on this very premise, and think the cleaner, greener investment trend will only continue to grow over time.


3. Osram enters talks for a potentially lucrative takeover

Osram Licht AG is in talks with Bain Capital and Carlyle Group LP about a potential takeover of the German lighting manufacturer, a move that would take the business private less than 18 months after Siemens AG sold off the last of its stake.

The two U.S. buyout firms are considering a joint acquisition and are conducting due diligence with a bid likely to be made at the end of March.

What does this mean if you’re invested in the stock market?

Takeovers of companies are relatively common place in today’s stock market and involves a party taking a controlling stake (usually 51% or more) in a listed company.

Companies takeover other corporations for a multitude of different reasons which include enhancing their business abilities, gaining a larger market share and competitive advantage, diversifying their products and services, cutting business operation costs and changing leadership.

Osram shares surged 14% to €40 on the new announcement, their biggest gain since November, valuing the company at about 3.9 billion euros (US$4.4 billion).

What does this mean if you’re invested with AtlasTrend?

At AtlasTrend, we don’t typically invest in a company just because it is likely to be taken over. However, since our investments tend to be in companies that are experiencing strong growth, it is not uncommon for them to be attractive takeover targets at some stage.


Join AtlasTrend to stay ahead of the curve, get expert investment insights and explore our managed funds by starting your 7-day free trial. Uncover all the international shares we’re investing in. Cancel anytime.

Sign up to AtlasTrend for Free

About Kent Kwan

Kent Kwan is a Co-Founder of AtlasTrend, an investment platform that makes it easy for anyone to learn and invest in trends impacting our world. Kent has over 17 years experience in financial markets including as Chief Investment Officer at Arowana International Limited, and roles at JP Morgan and Macquarie.