It`s a digital detox day today.
Shiny Bull will be back on monday.
Author Archives: Ket Garden
Draghi speaks
Shares rose today following gains in Asia, while the Euro held steady on speculation the European Central Bank would ease monetary policy later in the day. The economy in the Euro zone is still fragile and the ECB was expected to keep interest rates on hold.
Emerging stocks and currencies were broadly higher as diplomatic talks to moderate the crises in Ukraine were set to continue. The European leaders are having a meeting in Brussels today. They will discuss Russia and warn them but not sanction them, diplomats said.
Fears of military confrontation is reduced, and the attention now has shifted to what ECB will do now. Investors are waiting for Draghi today. ECB may hesitate to buy government bonds, unlike other major central banks like U.S Fed and BoJ.
The problem in Europe is high unemployment rate and slow growth. Will all this end up in deflation? The Euro is now traded at $1,3720 and it is expected to hear dovish talking from Draghi later today.
When the risk in Ukraine is reduced, the dollar strengthened against the safe-haven yen. It went up half a percent at 102,7 yen. The dollar index rose, which measures the greenback against a currency basket.
Reports today:
| 08:15 AM ET | FOMC Member Dudley speaks |
| 08:30 Am ET | ECB Press Conference |
| 08:30 AM ET | Unemployment claims |
| 08:30 AM ET | Revised Nonfarm Productivity |
| 10:00 AM ET | Factory orders m/m |
| 01:00 PM ET | FOMC Member Plosser speaks |
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Filed under Emerging markets, Stock market
Market Update
Nikkei rose +1,20% after comments by Russian President Vladimir Putin eased worries about military action in Ukraine. We also saw a big bullish move in the U.S markets yesterday. It was so green and beautiful.
European shares are steady today and commodities like gold and oil is trading down today. It seems like the U.S markets will open up today. Not bad after the bullish race yesterday: Nasdaq was up +1,75%, while S&P 500 went up +1,53%. The DOW is trading at 16,395,88, up +227,85, which is up +1,41%. Wow!
It is difficult to predict the future for currencies and oil. That`s because it is all about politics. Investors don`t like war, and what Putin or Obama says or do will have a huge impact of the financial markets.
Reports today:
| 08:15 AM ET | ADP Employment Report |
| 10:00 AM ET | ISM Non-Mfg Index |
| 10:30 AM ET | EIA Petroleum Status Report |
| 02:00 PM ET | Beige Book |
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Filed under Commodities, Stock market
Stocks rebound
We are in a positive territory again. Stocks up and commodities down. Gold is down -0,81% to 1,339,30. Copper is down -0,41 to 317,45. Crude Oil (Brent) is down -1,27% to 109,79. But Silver is up +0,17 to 21,27.
What Putin and Russia did was expensive to Russia. The Russian stock exchange (MICEX) plummeted after Putin declared the right to invade Ukraine. MICEX fell $58,4 bln from friday to monday, but are trading up again today.
The cost of the Winter Olympic games was $51 billion, held in the southern city of Sochi. In other words; the decision to invade Ukraine was more expensive for Russia than the whole Winter Olympic games.
Now, Russian President Vladimir Putin has ordered troops to turn back to the base and stop all military exercises. That is music in the investors ears, wich is now less nervous and the stock market is turning up again.
CAC 40 is up +1,34%. FTSE 100 is up 1,08%. DAX is up 1,03% and FTSE MIB is up +1,71%. Warren Buffet say war is a buying opportunity, because money in it self will lose value. Other investors say commodities like gold is a safe-heaven bet.
Tesla (TSLA) don`t care about wars. Trading up +2,13% yesterday and seems to continue up today. Tesla is up +619,3% (1 YR). So far in 2014, Tesla is up 70,1%. What a great company. It seems like the new safe-heaven is Tesla!
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Filed under Commodities, Stock market, Stocks
AT&T in Europe
AT&T (American Telephone & Telegraph) in planning to start business in Europe. AT&T (NYSE:T) Inc is an American multinational telecommunications corporation, headquartered at Whitacre Tower in downtown Dallas, Texas. The company is founded by Alexander Graham Bell in 1876.
AT&T is the second largest provider of mobile telephony and the largest provider of fixed telephony in the United States. They also provides broadband subscription television services. The company is the third largest company in Texas, but the largest non-oil company.
ExxonMobil and ConocoPhillips is the two that is bigger than AT&T and as you know they are in the oil industry. As of May 2013, AT&T is the 21st largest company in the world by market value. It is the 13th largest non-oil company.
As of 2014, AT&T is also the 20th largest mobile telecom operator in the world. They have over 107,9 million mobile customers. As you may know, this is a big company, planning to expand in Europe.
The stock price reached a top in Jul, 16, 1999, trading at 59,188. Now, 15 years later, the stock price is trading at 31,93. The stock has declined for a long time now, and while the S&P 500 hits new all-time highs, AT&T is near 52-week lows. Down -9,2% in 2014.
Some investors say that T will not make you rich as an investor overnight, but it can be a great stock in a longer term. T offers a fair valuation. They have a solid dividend yield and a mild earnings growth. They have two unites: wireless and wire line.
Some speculators say that this company is near the bottom as the P/E ratio reached single digits and dividend yield passed 5,75%. P/E ratio is 9,61 and the downside should be limited, but we have to keep an eye on the earnings.
The British telecom giant Vodafone (VOD) reported disappointing results in the third quarter ended December 31, 2013. It was worse than investors expected. It seems like Vodafone don`t have the ability to grow revenue in Europe, but the stock is doing it better than AT&T.
AT&T announced that the company will not make an offer for Vodafone, but they are looking for a large acquisition in Europe because they experience the same as Vodafone does in Europe; limited growth in the United States. The reason why AT&T is careful in acquiring Vodafone is their poor performance in Europe.
They are all selling the same products; SMS, MMS, phone calls and online access. You can`t say you have a better SMS than your competitors. They`re all the same, which means it all comes down to one thing: price, and that is good for the customers.
Some of the operators are just selling online access and gives you SMS and MMS and all your phone calls for free. You pay only one amount, no matter how much you call or send SMS. But that amount is much bigger than online operators like Skype and WhatsApp.
Skype is for free and WhatsApp costs 1 dollar after 12 months. If you go for those free solutions, you still need the wireless company and that is where they will earn money in the future: Online business.
Reports today:
| 08:30 AM ET | Motor Vehicle Sales |
| 08:30 AM ET | Personal Income and Outlays |
| 08:58 AM ET | PMI Manufacturing Index |
| 10:00 AM ET | ISM Mfg Index |
| 10:00:00 | Constructiono Spending |
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
Filed under Stocks
Ket Garden
Business, Politics, Finans 