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The European Union rose “only” 0,4 percent in Q1 of 2018

Last week I talked about America`s fantastic growth of 4,1 percent on quarter in Q2 of 2018, and this is only the beginning. It is no doubt; President Trump must be doing something right. But, what about the European Union?

GDP in the European Union rose «only» 0,4 percent on quarter in the first three months of 2018. Not much to write home about. But the growth have never been above 1 percent since the financial crisis in 2008.

The European Union reached an all time high of 1,30 percent in 1999 and that is right before the tech bubble burst. Since then it has been a dead fish, reaching an all time low of -2,60 percent in the first quarter of 2009.

At the same time we can see that the unemployment rate reached a record low of 6,80 percent in February of 2008, and that`s right before the financial crisis. It reached an all time high of 11 percent in February 2013, but in May this year it fall down to 7 percent again.

This isn`t good enough if we are living in a capitalistic world.

The European Union in Brussels are nothing more than unelected bureaucrats. Draghi and the ECB have, just like Japan and the U.S «printed» a lot of money, and will continue to do so. If they can`t turn around the ship, they need to consider a strong cheerleader.

European Commission President Jean-Claude Juncker had a meeting with President Trump last week. They were talking about trade, free trade and tariffs. Mr Trump`s goal is to make better deals so both the U.S and the EU can take more profit and prosper.

I think that the EU should be glad for that and they need to hurry up. The U.S is the world`s third biggest exporter, yet exports account «only» for 13 percent on GDP. Exports in the U.S reached an all time high of 215328 USD million in May this year, which is pretty impressive.

The EU has 28 member states and the biggest among them all is Germany (21 percent of total GDP), the United Kingdom (15 percent), and France (15 percent).

Exports of goods and services account for 46 percent of GDP while imports account for 42 percent, adding 4 percent of total GDP. But this is about to change. If the UK contribute with 15 percent of the total GDP in the EU, then what will happen to their growth after Brexit?

That being said; nor is the UK a success story. The British economy grew by 0,1 percent in the first three months of 2018 and well below 0,4 percent in the previous period. It is the lowest growth rate since a 0,1 percent contraction in Q4 2012.

The largest contribution to growth in the UK was from household spending at 0,2 percentage points. From the production side, the service industries made the largest contribution to GDP growth, followed by production.

Agriculture, the smallest component within the output approach of GDP made no contribution to growth to one decimal place, while construction deducted from GDP growth. The service industries increased by 0,3 percent.

Positive growth was recorded within all sub-sectors of the services industries; distribution, hotels and restaurants (0,1 percent vs -0,1 percent).

President Trump have repeatedly said that the EU have treated the US very bad. I have written many articles about that long before Mr Trump`s inauguration. The European Commission has fined Google €4,34 billion for breaching EU antitrust rules this month.

In May 2009, Intel was imposed with a 1,06 billion euro fined for abusing its market dominance on central processing units. Microsoft has been in trouble with the Commission on several occasions. In 2004, the Commission ruled that Microsoft had abused its market dominance.

In 208, the Commission fined Microsoft nearly 900 million euros for charging «unreasonable» royalty fees. In 2013, another fine of 561 million euros was imposed on Microsoft. This time for failing to comply with the Commission`s ruling that it had to allow users to more easily choose a prefered web browser.

The European Commission fined Facebook for 110 million euros in May this year in relation to its takeover of WhatsApp. Facebook acquired the messaging service in 2014 for $19 billion, but provided the Commission with misleading information about the acquisition.

In August 2016, the Commission ruled that tech giant Apple had received illegal tax benefits from Ireland worth up to 13 billion euros. Ireland was ordered to recover the unpaid tax from Apple, plus interest.

As early as 1966, British Politician Tony Benn said that «Communism run by commissars from Moscow did not work, and nor will capitalism run by commissioners in Brussels. Both deny people their right to develop in their own way.»

Now, under President Donald Trump, big companies like Apple are moving home to the United States with billions of dollars. Apple alone, are bringing in $230 billion. They will build new plants and a magnificent campus.

They will spend their money wisely and the money will be in the U.S. All this is possible because of Trump`s tax cuts and reforms. This is how you make growth.

 

 

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Netflix`s 43 percent jump in streaming revenue was its best in history

What investor on this planet didnt like Netflixs Q1 2018 revenue growth of 43 percent? Netflix has been one of my favorite stocks in many years and is still a favorite. But what investors are concerned about is their amortization of streaming content that is not keeping pace.

Netflix`s amortization of streaming content is up «only» 33 percent which is still very good, and their earnings growth is up 60 percent YoY. This is absolutely impressive. Despite the fact that their revenue growth is astonishing, CEO Reed Hastings has sold 8 percent of his stock.

 

Netflix is still expanding and according to Financial Times, the company will raise its investment in content across Europe and plans to spend about $1 billion on original productions this year. The revised budget will be more than double that of last year.

Netflix also unveils ten new European projects, and second season of «Glow» which will be released on June 29. Those who criticize their spending should be quiet, because the growth is unbelievable for a tech company that has been on the market for more than two decades.

Netflix added 7,4 million more streaming subscribers with 5 million of them outside the U.S, and higher subscription prices on top of their growing customer base gave them a huge boost for their revenue.

Netflix`s 43 percent jump in streaming revenue was its best in history.

Netflix reported $290,1 million in net income for the first quarter and that alone is more profit in three months than the streaming company had for the entire year of 2016.

Whats really funny is to see how Netflix in their own earnings report every quarter in a shareholder letter are describing their competitors. Netflix has been in the market for a couple of decades, but the competition has changed in the past year.

Last year, they were talking about «skinny bundles» and Amazon.coms sports ambitions, but new they mentioned Amazon, Apple, Facebook, Alphabets Google, YouTube and Walt Disney. Netflix are talking much about the iPhone maker and predicted how Apple will incorporate original content it has begun to purchase.

«Apple is growing its programming, which we presume will either be bundled with Apple Music or with iOS,» Netflix said. More companies are entering the market. Apple has reported that they will invest about $1 billion on original video content.

Netflix pointed out that it doesn`t seem to think Facebook and YouTube are truly competitors, as they are supported by ads instead of subscriptions.

Their biggest competitor may be former partner Disney. They split with Netflix last year, and started its own streaming services. Disney acquired 21st Century Fox and Hulu will also be owned by Disney after the deal with Fox.

Netflix`s market cap is $132 Billion.

 

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Investors are worried because Gary Cohn, who is a Wall Street veteran, was opposed to the tariffs

President Donald Trump usually do the things he promise to do. He had long talked about tariffs, and earlier this week he said; “I have no choice.” His economic advisor Gary Cohn didn`t like that and announced retirement.

Mr Trump shocked the market last week with his decision to impose 25 percent tariff on steel imports and 10 percent tariff on aluminium. Investors are worried because Gary Cohn, who is a Wall Street veteran, was opposed to the tariffs.

 

 

Gary Cohn is a former Goldman Sachs president and free trade advocate. He is the man who helped Mr Trump and his team at the White House to deliver historic tax cuts and reforms, but he clashed with Trump`s protectionist advisors on the issue of tariffs.

White House officially said that President Donald Trump will announce more details on the tariff proposal on Thursday this week.

In addition, there could be conversation this week around more trade actions.

European Union said they will target $3,5 billion of goods like motorcycles, T-shirts, whisky and jeans imported from the United States. European Commission President Jean-Claude Juncker said the trade bloc would “not sit idly” if Trump goes ahead with his tariffs.

President Trump warned the US would apply a tax on European cars if the bloc wants to increase tariffs on American companies. A statement the European automakers didn`t like at all.

The Volksvagen emissions scandal (Emissionsgate/dieselgate) began in September 2015, when the United States Environmental Protection Agency issued a notice of violation of the Clean Air Act to German automakers Volkswagen Group.

Volkswagen pleaded guilty to conspiracy and obstruction of justice charges in a brazen scheme to get around US pollution rules on nearly 600,000 diesel vehicles by using software to suppress emissions of nitrogen oxide during tests.

Assistant US attorney John Neal said it was a “calculated offence,” not a «monetary lapse of judgement».

In my recent articles, I have talked about Europe`s treatment of American companies. A bad treatment that has been going on for decades.

In 2001, the European Commission accused Microsoft of having illegally extended its dominans in operating systems for PC`s into adjacent markets, for tying Windows to programs that play music and videos.

The European Commission said Microsoft was too dominant in the market in 2001. They said the same about Google in 2016, claiming that Google was too dominant in the internet search market. Last year, they attacked the biggest company in the world: Apple.

Nucors CEO told CNBC last week that the presidents proposal was about treating Europe “exactly as they treat us.” So, who is the real elephant in the room?

President Trump has many times said that Europe are treating USA bad, and this has been going on for a long time now. It is clear to see that there has been a silent war going on, but Mr Trump is the one to do something with that.

The war between Europe and USA is not a secret anymore. This trade war is a zero sum game, and there is no winner. This is how the market was before the start of World War II. Now, the history seems to repeat itself. This can be very ugly.

In 2015, Russia marked 70 years since the victory over the Nazis with a spectacular parade in Moscow. Many Western leaders missed the event. USA is the one who stopped World War II.
<p align="LEFT"><span style="color:#333333;"><span style="font-family:Georgia, 'Bitstream Charter', serif;"><span style="font-size:small;">Everybody in Greece are talking about Nazi-Europe. They know the history from WWII. Nazi Germany invaded Greece to assist its ally, Fascist Italy, which had been at war with Greece (Greco-Italien War) for about a year. </span></span></span></p>
<p align="LEFT"><span style="color:#333333;"><span style="font-family:Georgia, 'Bitstream Charter', serif;"><span style="font-size:small;">The occupation ruined Greek economy. The Nazi occupation led to rampant inflation, and 200,000,000-drachma banknote were issued in 1944. They can
t do the same today, because they do not have its own currency. They have Euro.

What the Nazi`s did to Greece is a long list of crimes against humanity, and the truth cannot be hidden.

The Nazi`s burned down every house and dynamited the church in retaliation, but the Greeks were the first Europeans who won a victory against fascism.

The biggest party in Italy, The Five Star Movement, is Euroskeptic. So, are the Brexit voters. EU need to change its strategy very fast, because EU is very important but not the ugly part of it.

European Commisssion doubts justification for Trump tariffs. It is done under section 232, which refers to National security. European Commission cannot see how the allies is a threath to International Security in the United States.

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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Broadcom can be the third largest chipmaker in the world

Samsung and Intel are big chip makers, but Broadcom can start to join the club of the best chip makers and end up being the third largest chipmaker in the world. But firsts they need to do one thing: acquire Qualcomm.

Broadcom is planning to buy Qualcomm for about $103 billion if the deal succeeds, and that will be the largest acquisition in tech history. Qualcomm are best known for the default system on a chip called SoC and cellular modem vendor in most smartphones.

Qualcomm is famous for its near minopoly on the high-end smart phone SoC market with its «Snapdragon» line of chips.

Snapdragon semiconductors are embedded in devices of various systems, including Android and Windows Phone devices. They are also used for netbooks, in cars, wearable devices and other devices.

Snapdragon is a suite of system on a chip (SoC) semiconductor products designed and marketed by Qualcomm for mobile devices. The Snapdragon central processing unit (CPU) uses the ARM RISC instruction set, and a single SoC may include multiple CPU cores, a graphics processing unit (GPU), a wireless modem, and other software and hardware to support a smartphone`s global positioning system (GPS), camera, gesture recognition and video.

Samsung and Apple does not use Qualcomm`s operating system which means they are both competing with Qualcomm. Samsung have its own Exynos line system and Apple makes it sown SoC system for its iPhone and iPad.

But in the U.S, Samsung use Qualcomm chips only for this market and Apple has packaged a separate Qualcomm chip with the iPhone, but the company recently had the audacity to use an Intel modem in some iPhone models.

Broadcomm and Qualcomm combined will be big and that can make the prices go up. Google can do something with that. They want to improve its own Android, VR and AR and have sent a list of requests to other chip makers for future SoC designs. They also want to build its own processors.

According to Reuters, Broadcom Ltd made an unsolicited $103 billion bid for Qualcomm Inc on Monday.

Qualcomm`s share price skyrocketed before the dot-com-bubble. It reached nearly $90 but have never recovered. The stock has declined in two years from 2014 to 2016 and now it is trading at $62 on Monday.

It is another story for Broadcom. The stock has gone straight up since April 2016. On Monday, the stock reached an all-time high at $277.

 

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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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Google will launch its brand new phone Pixel 2 within a few weeks

It is a big day for Tim Cook and Apple today. The most expensive iPhone you`ve ever bought will be launched and that is happening ten years after its first release of their iPhone. That was then in 2007, but now it is 2017 and iPhone 8.

But Apple wont be long in heaven before I introduce another new phone on the market. Googles new release of their new phone called Google Pixel 2. Google Pixel and Pixel XL were both launched in October last year, so Pixel 2 will be launched next month, October 2017.

 

 

It isnt the most innovative product I have seen so far, but what I have seen is only leaked cases. The Pixel line is new and its building on the new defunct Nexus range. Apples new phone will be expensive, but you shouldnt expect Pixel 2 to be any cheaper than the old one.

The old one from Google started at about $650, so it was already expensive.

Rumors tells us that the new Google phone will be a curved screen with a 5,6 inch 18:9 display and a 2,560 x 1,312 resolution. With its use of AMOLED it will be very similar to Samsung Galaxy S8. Further more, it is rumored it will be a Snapdragon 835 chipset for all three Pixel 2 handsets.

The competition in the phone market increase and search giant not only face big competition from Apple but also from Xiaomi and Huawei. The last one remains Chinas top smart phone brand and Xiaomis sales are still climbing.

Xiaomi shipped 15 million phones during the quarter to rank fourth in China. That`s a 60% rise from Q1 2017. Huawei shipped 23 million ahead of brother-sister companies Oppo (21 million) and Vivo (16 million). Apple completed the top 5, having been leapfrogged by Xiaomi.

Xiaomi is the opposite of Apple with its price-conscious consumers. CEO Lei Jun hailed Xiaomi`s resurgence this year, calling it this most recent quarter «a major inflection point in our growth.»

«After two years of internal recalibration Xiaomi is once again embarking on a rapid growth trajectory,» Lei Jun told the press. He added that the company is aiming to reach 100 million phone sales in 2018.

Competition from Oppo, Vivo, Xiaomi and Huawei are placing them all in the price-conscious to mid-range devices category. They are more likely to succeed in Asia than Google and Apple in the West.

 

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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