This week’s stories cover WeWork’s rocky IPO journey, fashion brands going plastic-free, and how Trump’s Twitter has impacted markets.  (1:26 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. WeWork to delay IPO?

Co-working company WeWork has reportedly been preparing for its initial public offering (IPO). While the company has grown rapidly, there are mounting concerns over its US$47 billion-dollar valuation.

Some market analysts have argued WeWork’s business model is too similar to other short-term office leasing companies, which don’t command the same sky-high valuations.

In addition to the market skepticism, a recent report suggests WeWork’s largest external shareholder Softbank has also urged the company to put its IPO on hold.

For those wondering why an unprofitable startup is valued at $US47 billion (based on last fundraising round), CB Insights authored a comprehensive report on how WeWork makes money – well worth a read.

 

2. Fashion to the rescue

Major fashion brands including H&M and Chanel have signed an agreement aiming to eliminate plastic packaging by 2030, become carbon neutral by 2050, plus other ambitious environmental targets.

Given the signatories collectively represent more than 30% of the fashion industry’s production by volume, and the industry itself accounts for ~8% of the world’s carbon emissions – the environmental impact could be significant.

Interestingly, LVMH, which owns brands such as Louis Vuitton, did not sign on to participate.

The pact fuels momentum behind increasing consumer demand for sustainable practices in not only fashion but various other industries with the potential to affect our future.

 

3. The Trump effect

Global financial giant JPMorgan recently created the Volfefe Index to measure how President Trump’s tweets impacted markets.

More than 10,000 of Trump’s tweets (since becoming president) were reportedly analysed, which found he has been increasing the number of tweets on topics that can move markets, particularly around trade and monetary policy.

For long term investors in the stock market, Trump’s tweets might be mostly noise; though some of his tweets may be worth reading.

 

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