Tag Archives: China

Trump`s tax cuts and reforms are working, and 4,1 percent growth means the strongest growth rate since the third quarter of 2014

America is growing fast. The United States are growing faster than China. The U.S economy advanced an annualized 4,1 percent on quarter in Q2 of 2018, while China grew by «only» 1,8 percent. That`s a bomb.

The Chinese economy advanced 6,7 percent YoY in June quarter of 2018. Last year, the economy expanded by 6,9 percent, beating the government target of around 6,5 percent and following a 26 year low of 6,7 percent in 2016. But, the United States can come up to that level very soon.

Trump`s tax cuts and reforms are working, and now we can all see right in front of us. The U.S economy advanced in the second quarter of 2018 and it will continue. This is just the beginning. The growth can reach 6 percent and compete with China.

The U.S exports jumped 9,3 percent (3,6 percent in the previous quarter), and imports rose at a much slower pace. 0,5 percent compared to 3 percent. The impact from trade was 1,06 percent, which is much better than -0,02 percent in the first quarter, and this is the highest contribution since the last three months of 2013.

4,1 percent growth means the strongest growth rate since the third quarter of 2014 amid higher consumer spending and soybean exports while business spending slowed. Spending of durable goods rebounded 9,3 percent compared to -2 percent and rose faster for nondurable goods; 4,2 percent compared to 0,1 percent and services; 3,1 percent compared to 1 percent.

Larry Kudlow said in his speech today that this is just the beginning. They have fixed a world broken trade system, and business investment is booming. 9 to 10 percent in the beginning of this year.

This is important because it is the key to productivity which is the key to growth which is the key to real rising wages. Big corporations like Apple are also coming back to the U.S.

This is a boom that is sustainable, Kudlow said.

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We are now standing at a crossroad were two different visions of humanity`s future compete

Former President Barack Obama had a speech in Johannesburg on Tuesday. In an address Tuesday in honor of the late Nelson Mandela ahead of the 100th anniversary of his birth, Obama criticized populist movements toward authoritarianism around the world.

He was warning against protectionism, climate change and closed borders. Obama said “The politics of fear and resentment and retrenchment began to appear. And that kind of politics is now on the move. It`s on the move at a pace that would have seemed unimaginable just a few years ago.”

“I can`t find common ground if somebody says that climate change just isn`t happening, when almost all the world`s scientists tell us it is. I don`t know where to start talking to you about this. If you say it`s an elaborate hoax, where do we start?”, Obama said in the speech.

Strong man politics is on the rise. In the west you have far right parties that are based on closed borders, protectionism and nationalism. Many developed countries are now looking at China`s model of a totalitarian control combined with capitalism.

The free press is under attack. Censorship and state control of the media is on the rise. Social media once seen as a mechanism to promote knowledge, understanding and solidarity, has proved to be just as effective promoting hatred, paranoia, propaganda and conspiracy theories.

We are now standing at a crossroad. A moment in time in which two very different visions of humanity`s future compete. Two different stories and two different narratives. About who we are and who we should be.

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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Trump`s Trade War against China started with tariffs on $34 billion worth of Chinese goods

President Donald Trump`s trade war against China has started, and after midnight Eastern Time, Mr Trump raised tariffs on $34 billion worth of Chinese goods. In two weeks, the number will increase to $50 billion.

This is not only a zero sum game. In the long run it will turn into negative territory. So far, the numbers are low. When it hit about $200 billion I think it will be heavy. China`s Commerce Ministry said the Chinese side promised to make the necessary counterattack.

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 Chinese smartphone giant Xiaomi will go public in Hong Kong in July

The fourth-largest smartphone maker Xiaomi are planning to go public, and the company will start a roadshow in the U.S and Europe in a few weeks. After a collaboration with institutional investors in the U.S and Europe to value the firm at no less than $70 billion, the Chinese smartphone giant will go public in Hong Kong in July.

In my recent article I talked about Foxconn and their plans to go public a week ago, and more Chinese companies are on the way, One of them is Xiaomi, and their IPO is the biggest IPO so far in 2018 which is good for Hong Kong.

(Xiaomi`s profit is “only” $2, but their biggest market is India)

 

Hong Kong is on the way to be the destination of choice for global companies seeking to raise capital. Hong Kong marks the 21st anniversary of the citys return to Chinese sovereignty on July 1, and Xiaomis IPO can be a great birthday present to Hong Kong.

Xiaomi went from a start-up to surpass $16 billion in seven years, and their founder Lei Jun decided to make a smartphone brand selling handsets at “honest” prices. Eight years later, Lei Jun and the seven other co-founders have made a company that wants to challenge the global industry dominance by Apple, Samsung and Huawei.

Xiaomi are the cheapest smartphone on the market with the biggest market share in India. About 70 percent of their 2017 sales of 114,6 billion yuan came from smartpones, but there is a huge difference between Xiaomi and Apple.

Lei Juns profit from his low-budget price smartphone is "only" $2 per handset. Tim Cooks margin is between $151 and $250 on each iPhone.

Xiaomi more than doubled its overseas shipments to 27 million handsets in 2017. Its revenue skyrocketed to 32,1 billion yuan. There is no doubt that the global market is where their ambitions lie, and this is globalization at its best.

Xiaomi opened its first European sales outlet in Paris and plans to open additional Mi stores in France, Spain and Italy later this year.

Xiaomi do not only have a big potential with its smartphones but also from smart devices, better known as the Internet of Things (IoT). Industry revenue may balloon every year at a 13,3 percent compounded growth rate to $6,2 billion by 2021, according to IDC.

Their innovative products will make a tremendous change in every industry.

Xiaomis valuation can be $100 billion and it will be the biggest IPO since Alibaba in 2014. Alibabas IPO was the biggest IPO of all time with its 25 billion IPO in New York. Facebook went public in 2012 with an $16 billion IPO.

Former communist China are on the way up. This IPO will make even more rich people in China. Founder Lei Jun and his co-founders will be rich after the IPO. Not only that. 56 of the earliest employees pulled together $11 million to invest in the start-up. Today, they are the lucky 56.

Their stake in Xiaomi may soon be worth about $1 billion to $3 billion, depending on the stock sale. That works out to $36 million each at the midpoint.

Citic-CLSA, Goldman Sachs and Morgan Stanley had been appointed to arrange Xiaomi`s stock offer.

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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President Donald Trump will impose duties of as much as 30% on solar panels made abroad

Globalization is the word. All the world leaders in the Swiss ski resort of Davos are talking about it. And most of the worlds political and corporate elite defend globalization. But President Trump did something on Monday that some other leaders dont like.

He slapped 30% tariff on imported solar panels and washing machines, and that is his first step towards his campaign promise to get tough on China. Critics say that this step can slow down a fast-growing industry and destroy thousands of domestic manufacturing jobs.

President Emmanuel Macron will have speech in the Swiss ski resort of Davos on Wednesday. One of the most important things he will talk about is Globalization. On Friday, Mr Trump will also have a speech in Davos, and he will talk about his «America first» strategy.

Why in the world is Mr Trump doing this if it is bad for the solar industry and its jobs? Relax. This is not a new case and we have heard about this in many years. Former President Barrack Obama did the same in 2012.

In May, 2012, the Obama administration called for hefty tariffs on Chinese-made solar panels and cells. They were arguing China has been illegally «dumping» under-priced products on the U.S market.

In December 2014, The Commerce Department began closing a chapter in a protracted trade conflict with China over solar equipments, approving a collection of steep tariffs on importers from Taiwan and China.

They found that the companies were selling products below the cost of manufacture. On top of that they found that the Chinese companies were benefiting from unfair subsidies from their government.

The department announced anti-dumping duties of up to about 80% on imports made in China, and rates up to about 30% on imports of solar cells made in Taiwan. Some experts in the solar industry say this tariff will return to fair trade.

This is what all this is about: fair trade. This trade conflict has its roots in a flood of inexpensive Chinese solar products. This Chinese strategy pushed many American manufacturers out of business because of their reduced prices on solar panels.

Leaders are split over the case, and this long-simmering conflict has now ended with a 30% tax on Chinese solar panels. Mr Trump has promised to boost manufacturing jobs by cracking down on Chinese imports. It will create jobs and build or expand factories on U.S soil.

President Trump is doing this because he will defend American workers. He will defend American farmers and their ranchers. He will also defend all other businesses. He will «Make Amerian Great Again.»

Some people do not agree with Mr Trump. They said yesterday that Trump`s decision will kill American manufacturing jobs, not create them.

The Solar Energy Association has projected tens of thousands of job losses in the $28 billion industry.

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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