BUSINESS NEWS FEBRUARY 15TH, 2016
AT&T TO START FIELD TESTING 5G
AT&T said it plans to test its first 5G network in Austin Texas, an announcement that puts AT&T neck and neck with its competitor, Verizon. 5G networks are expected to deliver speeds up to 100 times faster than traditional 4G networks. However, according to a panel held by the CTIA Association in Washington last week, we may not see the effects of 5G until 2020. AT&T’s resistance comes from the precedent set by Sprint several years ago, when they invested too early in a 4G network that no one else had adopted.
IS THE BIG SHORT 2 ABOUT TO HAPPEN?
The Big Short, an Oscar nominated picture about investors who bet against the market in 2008, may be a reflection of what is happening right now. With stocks taking a beating in the New Year, investor Brent Lamensdorf is betting against the market. His fund, HDGE, is up 18% while the Dow is down 9%. Lamensdorf has been using the short selling technique in order to make a huge profit. He says that we should expect a 14-20% drop in the coming months.
OIL CLIMBS AS PRODUCERS MEET
Oil gained about 2% on Monday after news that Russia, Venezuela, Saudi Arabia and Qatar would meet in one of the largest producer gatherings since OPEC met in early December. WIth oil prices in the rut, this meeting between oil rich countries is a sign of OPEC’s renewed efforts to pick the prices back up. However, despite a growing consensus that something needs to be done, according to the Nigerian Oil Minister, Russia has repeatedly refused to cooperate with OPEC.
BOEING SEES NEW POTENTIAL IN ASIA
South Asia has now become a well of potential for airplane manufacturer Boeing, as they have requisitioned 3,750 new aircraft worth $550 billion. Approximately 76% of that massive sum will be reserved for single aisle aircrafts and Boeing 737’s. Since 2010, air traffic in Southeast Asia has grown by 9% and is projected to increase another 7.7% over the next 20 years.