by | June 24, 2016 · 11:19 am

Britain OUT of the European Union

The day today is historic. The British people voted for a BREXIT! The pound plummeted and Prime minister David Cameron resigns. The British people backed “Brexit” and leave by 52%.

What a day!

The pound plummeted 7 percent  on its worst day on record. Thats nearly twice as much as the big drop on 1992s Black Wednesday when the currency dropped 4,1 percent.

 

brex

 

But what`s wrong with a weaker pound? A lower pound will help the British exporters which means exporters will be more competitive and sell more not only to european countries but to the rest of the world.

On the other side, prices can start to increase and it will be more expensive for the British people, and that will be a challenge for BOE`s inflation target.

Britain is still in Europe and will always be, but Brexit means they are out of the European Union system. That`s something different.

Prime Minister David Cameron will step down in October, and what the new Prime Minister must do is to negotiate with EU and other european countries and cooperate in EEA (European Free Trade Assosiation).

They are still a country in Europe but what they want is their own sovereignty and more control over their own currency.

Just take a look at Greece. After joining EU they have been in a very difficult situation, and they can’t print their own currency because of the Euro, so only that is making it difficult for them.

This is still early on stage one but you can already see that the pound have turned up again, and that`s how it will be. The turmoil will continue.

I think that BOE have a lot of things to do right now. They will do everything they can to keep the market in balance. This will also spread to the FED and ECB.

For all I know BOE have already added liquidity to the markets and Draghi and ECB will probably follow.

June 23 will be our independence day, Farage said.

JUNE 23, 2016, WILL NEVER BE FORGOTTEN!

 

BRIT

 

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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by | June 23, 2016 · 1:10 pm

Will Britain leave the European Union today?

 

Finally the day is here, June 23, 2016. The day all traders have talked about in months. The day when Britons go to the polls to decide whether to leave or remain in the European Union. Traders have talked about it because a Brexit will move the markets.

I don`t trust the polls because they are never perfect. In this case, we have seen remain in the EU to win against leave the EU camp. Until now. The wind changed, and Leave the EU camp went straight up last month.

 

Latest Brexit polls odds - UK EU referendum

 

Now, only hours before the Britain’s are finish to vote,  remain in the EU camp have been fighting back and lead with only 2%. So, who can change the game? About 10% doesn`t know what to do, which means they will make up their mind in the last hour.

The polls indicate the vote result is too close to call.

Traders I have talked  with expect Britain to remain, but if we wake up to a Brexit tomorrow I think the volatility will increase. Not only that. We will also see economic and political turmoil. The value of the British pound will plunge and BOE will touch the interest rate.

The British pound have already moved before the referendum, and the British pound had its strongest surge since the aftermath of the 2008 financial crisis. Its up 3% against many other major peers in one single week.

I think the British pound are skyrocketing because the traders belive Britain will remain in EU.

The Euro have consolidated since June 2014, when ECB President Mario Draghi introduced negative interest rates. The Euro have since then moved up and down of about $1,05 to $1,15. Right after Draghi introduced the bad news, the Euro dropped 20%. According to data from the Organisation for Economic Co-operation and Development, the Euro is 17 percent undervalued.

The leader of the leave the EU campaign, Former London Mayor Boris Johnson, told Sky News “This is our last chance to take back control and it`s worth fighting for, he said.

The voting booths opened at 7 a.m on Thursday, and a record 46,5 million Britons registered to cast ballots.

 

BRIT

 

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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by | June 21, 2016 · 12:43 pm

51% use social media for news each week and the growth has been enormous since 2013

Do you still read latest news on dead paper? Do you still watch TV for your latest news? If so, I can tell you who you are and how old you are. A new report from Reuters institute for the study of Journalism at the Universe of Oxford, claims that there is a generation divide when it comes to news consumption.

The research is based on a survey of more than 50,000 online news users in 26 countries around the world and it is the largest ongoing study of its kind. Author Nic Newman said “We really hit a landmark this year”, and for the first time, more than half of the DNR sample now uses social media for news each week, and the growth has been enormous since 2013.

51% use social media for news each week
12% say social media is their main news source
More 18-24`s now prefer social media (28%), as a news source, to TV news (24%)
44% of the DNR sample uses Facebook for news each week

No one is near the social media king Facebook with 44%. Next is YouTube (19%), although the video network plays a prominent news role in some countries. The report also claims that video news is growing more slowly than expected. Twitter is third with “only” 10%.

Press release graph 1 (1)

The report explores news consumption in : the US, UK, Germany, France, Italy, Spain, Portugal, Ireland, Norway, Sweden, Finland, Denmark, Belgium, Netherlands, Switzerland, Austria, Hungary, Czech Republic, Poland, Greece, Turkey, South Korea, Japan, Australia, Canada and Brazil.

Director of Reuters Institute for the Study of Journalism (RISJ), Dr David A L. Levy, said in the foreword that the report is the fifth annual report that explores the changing environment around news across countries and you can read more about it at http://www.digitalnewsreport.org

Digital-born companies like BuzzFeed and The Huffinton Post are growing and The Huffington Post is the second most-consumed online news source in the U.S and the third popular in the U.K.

But do people trust the news? In the Unites States, news media is trusted by a third (33%) of users, but its worse in Greece with its lowest at 20%. Finland are at the top with 65%. It remains to see good quality Journalism and people’s willingness to pay for it.

 

asphalt

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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by | June 16, 2016 · 9:00 am

Oracle can be in the midst of a tectonic shift to the Cloud

Microsoft acquired LinkedIn for $196 per share, and this will not be the last deal in the tech industry I think. The M&A will continue, but who are in the position to push the M&A activity any further?

Blue chips are. So are Oracle Corporation which is scheduled to report fourth quarter of fiscal 2016 earnings results on Thursday, June 16. The company have had a lot of problems lately but what can we expect now?

 

365459-CloudWorld-612

Oracle lost its high-profile copyright fight with Google, and they are named in a $3 billion suit by the former HP Enterprise. Hewlett-Packard claims Oracle «breached a clear contractual obligation to HP and acted in bad faith, with the intention of driving hardware sees from HPs Itanium to Oracles sun servers.»

The two used to be business partners but a split deepened when Oracle Corporation acquired HP rival Sun Microsystems and later hired HP ex Mark Hurd as co-president. On top of that; former senior finance manager is suing, saying she was terminated in relation over complaints about accounting practices in its cloud services business.

Management pushed Svetlana Blackburn to «fit square data into round holes» to make the business look better, she claims. The stock have been declining since 2014, but BofA/Merrill Lynch views the quarter as a turning point in the cloud segment.

The cloud business is still «only» 6,5 percent of total revenue, but this business segment is growing. The stock price look undervalued with the price just below $40, and many investors are waiting for the stock price to breakout from its consolidation between $35 – $45.

Oracle is the world`s largest provider of enterprise software and a leading provider of computer hardware products and services. Oracle the database software giant in the midst of a tectonic shift to the Cloud.

Cloud is beginning to come into play. Last quarterly results authorized cloud transition with step-like increases in Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) sales growth rates. It`s difficult to see how their gross profit can decline as their SaaS/PaaS revenues probably will increase in fiscal year 2017.

Oracle is coming off a better than expected third quarter in which they beat on the bottom line but missed sales estimates. The continued transition from licensing, where revenues are booked upfront, to a cloud subscription model, where it is realized month to month, will hurt top line growth as witnessed this past quarter.

Oracle enjoys a leading position in enterprise and database management systems. They are also gaining ground in the rapidly growing cloud sector, which is one of the fastest growing sectors in technology and that has without doubt benefitted Oracle.

Its expected to see an earnings of $0,82 per share on $10,5 billion in revenue, and thats one penny higher than Wall Street on the bottom line and in-line on the top. YoY comparisons are now projecting a 5% increase in profitability with sales actually decreasing 2%.

Oracle reports on Thursday, June 16.

asphalt

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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by | June 14, 2016 · 9:00 am

Microsoft will integrate LinkedIn into Dynamics and Microsoft Office 365

LinkedIn is a small company compared to Facebook, and the stock had fallen out of favor after a cautious outlook earlier this year. The stock plummeted more than 40% in just one single day in February this year.

That was then. Now, the went straight up on good news, and the stock skyrocketed 46% in one day. Investors jumped in on the news on monday. Microsoft announced that it has agreed to acquire the professional networking platform in an all-cash deal worth $26,2 billion.

 

lnkd

 

Microsofts CEO Sataya Nadelia said The deal would «bring toghether the worlds leading professional cloud with the worlds leading professional network», and LinkedIns CEO Jeff Weiner will remain at the helm of the social network.

Microsoft is paying $196 a share for LinkedIn.

What company could be better than LinkedIn in terms of their position and opportunity for growth? The price Microsoft paid was fair, and this acquisition will make LinkedIn more valuable under Microsoft`s umbrella than a standalone company.

Microsoft is still one of the worlds biggest companies, and this acquisition was brilliant. Its not difficult to see what Sataya Nadelia is thinking. He will probably integrate LinkedIn into Microsoft Office 365 and Dynamics.

Marketers and professional networks will still use the platform and integrate it in their sales process. They will be more willing to pay for training and to keep on building marketing campaigns their new CRM.

Microsoft will improve the Dynamics CRM software and Office 365 enterprice offerings, and there is no doubt that Microsoft is interested in more market shares in the CRM business. They want to build out their Customer Relationship Management to compete with Salesforce.

A few weeks ago, Microsoft was the first bidder for Marketo which is part of the automated marketing space. And they have enough cash to buy them all. But they are not interested to spend some cash on this acquisition. They will make a loan to avoid a 35 percent tax bill.

Just like Apple last year. They have $180 billion overseas, but borrowed $6,5 billion to pay shareholders a dividend. We still have low rates, and that`s why we have seen a huge activity in M&A recently.

It would be stupid not to do that.

Many big tech companies have a lot of cash. Alphabet Inc, Apple, Microsoft and Facebook have hundreds of billions of dollars in cash and you can imagine their opportunities in the future. But I must admit it was a surprise that Reid Hoffman sold his «baby» to Bill Gates.

What I expected was to see Twitter in that position. Not LinkedIn. But for all I know, maybe Twitter is the next takeover? It`s beginning to be cheap with a market cap of about $10 billion. If this continue, the share price can drop down to about $5.

Twitter should sell before they are worthless. If Google or other media companies wants the platform, they can have it for almost «free» if they wait any longer.

 

asphalt

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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