Cisco to Plunge on the Release of NSA Spying Tools, 7% Layoff

[This market update and analysis is taken from: FSM News.]

The stock of Cisco Systems Inc. (NASDAQ: CSCO), the largest networking company in the world, is poised for a significant decline due to the mysterious release of spying tools created by the US National Security Agency’s elite group of hackers and the massive 7-percent job cuts.

Impact of NSA Hacking Tools Leak on Cisco

A cache of highly sophisticated hacking tools codenamed Buzzdirection, Epicbanana, Egregiousblunder, and Extra Bacon, among others appeared online just recently, and Cisco products were deemed vulnerable to these. ExtraBacon particularly targets Cisco Adaptive Security Appliance firewall.

This latest news can be considered as an international scandal as the multibillion dollar tech corporation’s networking equipment are used by countless of critical state agencies and large companies all over the world. With these hacking tools leaked out into the internet for all to see, anyone from a basement hacker to a professional spy could gain access to them now. Until these cybersecurity flaws are patched, many computer systems, especially those utilizing Cisco products, may be in jeopardy.

Oil Soars Higher as Saudi Hints Production Cut

On Friday, the price of oil has surged significantly, extending overnight gains after Saudi Arabia announced its plans to coordinate with other major oil producers to stabilize prices.

The recent comment of the world’s biggest oil producer has been interpreted by most market participants as a move to limit the production of oil. 

By 06:45 GMT, Brent crude futures were valued at $46.12 a barrel, receding from a three-week high of $46.66 posted in the day, though still 8 cents higher from its previous close.

U.S. West Texas Intermediate (WTI) crude was up 21 cents and is currently trading at $43.70 per barrel.

According to a recent update, Saudi Arabia and Russia, two of the world’s largest oil producers, has agreed to make a move to counter a slump that has severely hit economies, markets and companies. The oil producers would talk about a potential action to stabilize oil prices in a meeting in Algeria next month.

“Talk of production cuts in the oil markets saw prices surge overnight,” said ANZ bank on Friday.

The oil prices surged more than 4 percent on Thursday in response to the Saudi Arabia’s minister’s comments, which were interpreted as a positive development in a market suffering from an oversupply.

“Oil traders were spurred into action by the comments” a market strategist said.

Oil prices have been moving in a tight range recently as most market players and analysts were divided on what major producers, especially those who are members of the Organization of the Petroleum Exporting Countries (OPEC), would do to re-stabilize the oil market. 

OPEC has announced earlier this week that its members will meet on the sidelines of an energy conference in Algeria next month, from Sept. 26-28, after the cartel failed to reach an agreement at a meeting earlier this year.

“Markets remain highly skeptical over the potential for coordinated action to balance oil markets, with the failure to reach an output freeze deal earlier this year still fresh in the mind. Nevertheless, the knee-jerk reaction that followed sent crude prices rallying,” said PVM in a note.

Saudi Arabia, the world’s number 1 oil producer, is pumping insane amounts of oil – 10.67 million barrels per day in July – causing some market players to question the kingdom’s sincerity.

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Dollar Rebounds after Blow from US GDP Data

In the report of a lower-than-expected growth data in the US, the greenback had fallen last Friday. Today, however, the greenback managed to bounce back, nursing its losses.

On Monday, the dollar tended its losses from lows it reached after the announcement of a downbeat US growth data report before the weekend.

In a note by Marc Chandler, the global head of currency strategy at Brown Brothers Harriman, it was written that “the US dollar advance was stopped in its tracks by the disappointingly weak Q2 GDP figures.”

The dollar index was higher at a meager 0.1% at 95.578, recovering from its Friday trough of 95.384, the lowest level last seen on July 5.

Meanwhile, the euro nudged higher 0.1% to $1.1176 while the sterling climbed 0.2% to $1.3251. Investors turned their attention to the Bank of England’s decision on Thursday.

The Australian dollar was trading higher at $0.7608.

Elsewhere, non-farm payrolls report for July will be released on Friday. In a poll by Reuters, economists predict an increase of 175,000 jobs, lower from June’s 287,000 gain. Jobless rate is forecasted hovering steady at 4.9%.