Category Archives: Stock market

Stocks plummet on China tariffs and Trump tweets

Trump escalates the trade fight between the U.S and China and rips Federal Reserve President Jay Powell. Trump tweeted earlier today that «Starting on October 1st, the 250 Billion dollars of goods and products from China, currently being taxed at 25%, will be taxed at 30%.

…..Additionally, the remaining 300 Billion dollars og goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. And all that led to a Market chaos on Friday.

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.
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The retail apocalypse will continue

Walgreens announced yesterday that they will close 200 US stores. A company that was founded 118 years ago. But Walgreens is not alone. About 12,000 stores are expected to close in the U.S this year.

According to CoStar Group, retailers closed a record 102 million square feet of store space in 2017, but that number was smached in 2018 by closing another 155 million square feet. To sum up; that`s thousands of stores.

So far this year, 29% more stores closings announced than last year, according to Coresight Research. They tracked the 5,864 closings in 2018, which included all Toys R Us stores and hundreds of Kmart and Sears locations.

This year, Sears are planning to close another 21 stores while Kmart will close «only» 5 stores in October. Kmart closed 48 stores earlier this year. That`s nothing compared to Walgreens’ 200 stores. Or Fred`s 442 with another 129 stores.

We have to keep in mind that some of the retailers also are opening new stores while closing locations at the same time. But……

The pain will continue for years to come. According to UBS, if the e-commerce penetration continue to rise up from its 16% level to 25%, about 75,000 stores need to be shuttered within a few years.

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.

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JPMorgan Chase & Co will report earnings while we are entering a rate-cutting cycle

The banks are in focus this week as they will report earnings with JPMorgan Chase coming out with their report Tuesday morning before the open. JPMorgan has outperformed its peers and their growth has been 18% per year last three years.

Last two years, JPMorgan Chase has beaten Earnings Per Share estimates 100% of the time. They have also beaten revenue estimates 100% of the time.

Analysts expect JPMorgan to earn $2,50 per share in the second quarter on revenue of $28,91 billion. JPMorgan earned $2,22 in the second quarter last year.

JPMorgan is different from Well Fargo which is also reporting earnings on Tuesday. JPMorgan Chase has moved up over 10% over the past year while Wells Fargo has faced a lot of obstacles, inkluding lack of their own CEO.

The banking industry is scary to me at the moment, and the most dangerous bank in the world is in Europe. Dutche Bank has been a desaster for a long time and the company are on the edge. A collapse could send the whole world in a negative trend.

We are also entering a rate-cutting cycle which is not good for the banks either. The margins will shrink and the earnings will decline while the rates are falling and the spread between the rates on loans and the rates paid out on deposits shrinks.

Morgan Stanley and Citi both downgraded the industry as a whole because of this development with rates, but JPMorgan is still a favorite.

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.

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Huawei launched the world`s fastest 5G foldable phone Mate X on Monday

Samsung wont be alone on the market for foldable phones. Yesterday, Huawai launched the worlds fastest foldable 5G phone and the price for this awesome product is $2,600. Its a stiff price but its worth it.

You can supercharge the foldable phone called Huawei Mate X for 85 percent battery time in only 30 minutes, and so far Mate X looks like a better phone than Samsungs Galaxy Fold. It is thinner with the Folcon Wing design and have a bigger screen. Samsung will start selling Galaxy Fold on April 26, while Huaweis Mate X will be on the market in the middle of 2019.

Samsung and Huawai will not be the only one on the foldable market as we already know that other Chinese companies are on the way with their version of a brand new foldable phone. Huawei is a leading global provider of information and communications technology (ICT) infrastructure and smart devices and they are building a fully connected, intelligent world.

The synergy with a phone and tablet unlocks future potential to enhance your life everyday. Mate X has many sophisticated cameras and incredible power. You will have more power to work on projects, watch movies and play all your favorite games.

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.

 

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Euro Area`s main import partners are the United Kingdom with 10% and China with 12% of total imports

A no-deal Brexit is not only bad for the United Kingdom but also for the Euro Area. They will both loose on it and that`s why a win-win should be a goal for them both. Populist-Italy is already into a recession, and other Euro Area-countries can follow.

Main imports in Euro Area are energy, manufactured goods and machinery. Main import partners are China with 12 percent of total imports and United Kingdom with 10 percent. Imports rose 1,9 percent in December 2018, while exports fell 2,5 percent in the same period.

According to Comtrade`s database, United Kingdom take most of their imports from Germany. 14 percent of their import comes from Germany and a no-deal Brexit means less German cars sold in the U.K. Total value of German imports came in at $89.23B in 2017.

9,5 percent of the import comes from China and 9,4 percent comes from the United States. Both of them outside of the Euro Area. The value of the import from China was 59,78B, and 59,75B from the U.S in 2017.

When it comes to export, the U.K`s biggest trading country is the United States which account for 14 percent. Second is Germany with 11 percent with France on third with 7,6 percent. Total value of exports to the U.S is $59,09B. Germany; $46,64B.

As you can see, the U.K are in balance with the U.S but when it comes to Germany they buy twice as much as the sell to the Germans. In other words they have a trade deficit with Germany. A no-deal Brexit can end up with less BMW and WV cars and more Tesla`s in the U.K.

German factories will lose money and market shares while other brands and countries will prosper. We will face a radical shift in the trade balance.

56 percent of the U.K exports goes to Europe while 40 percent goes to Asia and America. The economy is slowing down and the British economy grew by 0,2 percent on quarter in the three months to December last year. In comparison; the U.S economy advanced an annualized 3,4 percent.

The U.K trade deficit decreased to GBP 0,32 billion in December of 2018. Imports declined 1,6 percent to GBP 55,85 billion and exports fell at a slower 1 percent to GBP 52,62 billion. Balance of trade reached an all time low of -5749 GBP million in October of 2013.

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.

 

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