The freedom-fighters continue to
protest against the Communists in China, but it isn`t cheap. The Hong
Kong economy shrank 2,9 percent YoY in the third quarter of 2019.
They`re on the way down to recession for the first time since the
third quarter of 2009.
The economy is declining while the government spending are growing at a faster pace. What a toxic mix. Government spending increased 5,3 percent while fixed investment declined 16,3 percent. Private consumption shrank 3,5 percent and exports of goods fell 7 percent.
The freedom-fighters in Hong Kong have
used masks for months now, but today they celebrated Halloween. But
the Hong Kong police fired tear gas into the crowd of masked
People in Hong Kong need to know that the rest of the world is supporting them, and everybody in this world must ask themselves what the value of money is compared to freedom? Readers of Shinebull.com know that money is worthless. Freedom isn`t.
Some “smart” journalists reported to the world that Trump was a moron because of his tax cuts. How in the world can he afford to do that, the journalists said. Trump is the right man at the right place at the right time. Americans voted for the right man and the party.
We all know that the U.S economy is very strong and what Trump have done so far at the White House have boosted the economy. Pence said in a speech yesterday that the U.S has the strongest economy in the history of the world.
Not only that. Trump is also the first president to actually stand up to Communist China. “President Trump understands the Chinese like no president understood them, and he`s very good at dealing with gangsters,” former activist jimmy Lai said. Now, Beijing and Washington are working to resolve their differences.
Pence said he hoped the U.S could make
a deal with China very soon. But he also said that America`s days of
helping rebuild China are over. The Communists has been growing fast
since the dot-com-bubble in 2000, and Pence said most of their
success is driven by the U.S investment in China.
At the same time; the U.S deficit with
China has grown fast too. How fair is that? The Communist China are
growing fast while the U.S trade deficit with China are growing
Trump have many times said that the U.S
have rebuilt China over the past 25 years. But those days are over.
History will show that president Donald Trump have changed that
“No longer will America and its leaders hope that economic engagement alone will transform Communist China`s Authoritarian State into a open and free society, that respects private property, the rule of law and international rule of commerce,” Pence said in his speech.
Instead, he said, “president Trump now recognizes China as a strategic and economic rival.”
Over the past year, president Trump have taken bold action to correct the failed policys of the past. All the strengthens America. All this to set America`s relationship on a fair and constructive course. All this for the good of both nations. And the rest of the world.
Amazon is expected to report earnings
on Thursday 24 after market close, and the consensus EPS forecast for
the quarter is $4,46, and that is below the reported earnings for the
same quarter last year that came in at $5,75.
I have been watching Amazon for two decades and it`s a big surprice to see that the company is still interesting. The company has been growing since the late 90`s and have now become a huge conglomerate with many businesses on top of its core business.
Cloud computing is one of the biggest
winners at the conglomerate at the moment, and that`s also one of the
biggest reasons why investors are holding their shares. It`s not
their e-commerce business I`m looking at right now. It`s simply AWS
(Amazon Web Services).
AWS made up about two-thirds of
Amazon`s operating income last quarter. 13% of Amazon`s revenue comes
from AWS. This is one of the most interesting part of the
conglomerate with its great business model.
AWS grew 49% in the same quarter last
year, and last quarter AWS reported a 37% growth and that is still a
very great number. But it costs. Last quarter, Amazon reported that
they had invested heavily in AWS.
Amazon added more personnel to the
marketing team as well as the AWS`s technical team. Money makes
money, and these investments should pay off in the long run.
Amazon have big competitors out there
and one of the biggest are Rakuten in Japan and Alibaba in China. I
receive many packages from them all and free and fast delivery is
critical important to them all.
Jeff Bezos knows it and that`s why they now are in direct competition with FedEx and UPS to name a few. Amazon have recently started to ship third-party goods through its own logistics system, and that`s probably why FedEx made a decision to cut ties with them. This is probably why FedEx also reported negative results in its recent earnings.
According to Rakuten, Amazon has gone
from shipping 15% of its own packages in 2017 to 50% today. Will they
continue to ship its own packages through its own logistics system,
and what is the percentage?
The shipping cost accelerated and can
increase. On top of that Amazon still have its one-day shipping
strategy which is a strategy not all of the e-commerce giants can
follow up. I receive many packages from Ebay and sometimes it can
take weeks and months to see the item arrive. But they have a
Investors should look at it in the long run and keep in mind that the shipping cost can drop when the drones are coming to play the game. But it remain to see when that is happening.
McDonald`s Corporations is expected to
report earnings on Tuesday 22 before market open, and the reported
EPS forecast for the fiscal Quarter ending September 2019 is $2,21
which is up from last years $2,1 for the same quarter.
So far this year, the stock is up 17% and that is 2% lower than the S&P 500. Nor is it as good as its restaurant peers. Earnings is expected to be $2,21 a share on revenue of $5,48 billion. Previous quarter, they had an earnings of $2,05 a share and revenue of $5,34 billion.
Analysts have praised McDonald`s use of
technology and their investments in AI, but also its experience of
the Future restaurant remodeling.
Earlier this summer, McDonald`s partnered with Doordash to expand new sales in the direct delivery market. A direct attack on Uber Technologies’ Uber Eats.
McDonald`s is the largest food
restaurant in the world and their move to adopt plant-based protein
patties for Beyond Meat can give McDonald`s a boost. This is a pilot
project and it doesn`t mean that fast food chains will stick to
keeping plant based products on the menu.
Beyond Meat is a huge success and
partnered with McDonald`s across 28 locations in Canada, but at the
same time the company`s burgers were pulled from locations in another
big regional Canadian fast food chain called Tim Hortons.
The demand for alternative proteins continues to skyrocket and analysts expect that the plant based products will take a huge bite of the traditional meat industry over the next decade. Barclays believe the market for alternative proteins could hit $140 billion by 2029.
The worlds fastest-growing region is slowing and show sign of a darkening global outlook. Just look at Chinas Q3 growth. It`s the weakest growth in 28 years. The Chinese economy advanced 6% YoY in Q3 2019 and that is the weakest since 1992.
China have a trade tension with the U.S, weakening global demand and alarming off-balance-sheet borrowings by local governments. IMF said on Friday that the growth can get worse, but Japanese Finance Minister Taro Aso said «All policy tools must e used to achieve sustainable growth.»
In its World Economic Outlook report on Tuesday, the IMF cut its economic growth forecast for the Asia-Pacific region to 5,0% for this year and 5,1% for 2020, and that is the slowest pace of expansion since the global financial crisis.
A faster-than-expected slowdown in Chinas economic growth could also generate negative spillovers in the region, as many Asian countries have supply chains closely tied to China, the IMFs Rhee said.
The IMF slashed China`s growth forecast to 6,1% for this year and 5,8% for 2020, pointing to the impact from the trade conflict and tighter regulation to address excess debt. But China is not alone.
The pace of global economic activity remains weak, and after slowing sharply in the last three quarters of 2018, momentum in manufacturing activity, in particular, has weakened substantially, to levels not seen since the global financial crisis.
Rising trade and geopolitical tensions have increased uncertainty about the future of the global trading system and international cooperation more generally, taking a toll on business confidence, investment decisions, and global trade.
A natable shift toward increased monetary policy accommodation, through both action and communication, has cushioned the impact of these tensions on financial market sentiment and activity, while a generally resilient service sector has supported employment growth.
To strengthen resilience, policymakers should address financial vulnerabilities that pose risks to growth in the medium term.
Making growth more inclusive, which is essential for securing better economic prospects for all, should remain an overarching goal.
A positive cheerleader like Trump is the right man to reach that goal. Not the Media-Mob-Clowns talking about recession ever day. What is Trump doing for his country? What about the Media Mob?