Tag Archives: Protectionism

Pinterest is ready to go public but the “catalogue of ideas” is still blocked in China

I wrote about an upcoming Pinterest IPO on January 12, 2015. I said it was probably to early for them to go public at that time, but now four years later Pinterest has confidentially filed paperwork with the SEC for an IPO.

The photo-posting app firm Pinterest has chosen Goldman Sachs and JPMorgan Chase to lead its IPO, and shares will be available later on this summer. They have begun interviewing bankers and could raise $1,5B.


(Picture: Chinese Wall)

 

The company was launched in March 2010, so this is a young start-up that will follow many other start ups to go public this year. They have 250 million MAUs as of October 2018, and they have 800+ employees that is working with «catalogue of ideas.»

In 2012, Pinterest was valued at $1,5 billion. Two years later the company was valued at $3,8 billion. A few year later (June 2015) Pinterest was valued at $11 billion. The same year, Fortune Magazine listed Pinterest in the 8th position on its Unicorn list.

Since its inception, it has developed into a well-funded site financially supported by a group of successful entrepreneurs, and in 2011, the company secured a US$10 million Series A financing led by Jeremy Levine and Sarah Tavel of Bessemer Venture Partners.

Later on the same year, Pinterest secured US$27 million in funding from Anderssen Horowitz, which valued the company at US$200 million. Now, a few years later, the value of the company is 60 times higher.

Internet service provider in populist India had blocked Pinterest following a Madreas High Court order in July 2016 but the block was temporary. It`s even worse in Communist China. In 2017, Chinese authorities blocks Pinterest and the website is still blocked after Two Sessions in 2017.

No response has given, but some media guess that the blocks was related to the Two sessions. Huaban, Duitang and 30 more websites has many similaarities to Pinterest, so they are not alone on the market. However, they are not blocked in Hong Kong.

The same happened to Google in China. Once a popular search engine in China with a market share of 36,2 percent in 2009, but they blocked the web site and Google`s search market share dropped to only 1,7 percent.

Communist China is authoritarian and authorities was scared and stopped Google and this is what protectionism and Nationalism works. Most services offered by Google China were blocked by the Great Firewall in the People`s Republic of China.

In 2010, searching via all Google search sites, including Google Mobile, were moved from mainland China to Hong Kong. The same year, Google announced that, in response to a Chinese-originated hacking attack on them and other US tech companies, they were no longer willing to censor searches in China and would pull out of the country completely if necessary. Is this really fair trade?

Four year earlier, co-founder Sergey Brin said that virtually all of Googles customers were using the non-censored version of their website. Google critics in the United States claimed that Google China is a flagrant violation of the Google motto: «Dont be evil.»

On 13 January 2010, the news agency AHN reported that the U.S Congress planned to investigate Googles allegations that the Chinese government used the companys service to spy on human rights activists.

The US Secretary of State Hillary Clinton said at that time that analogies were drawn between the Berlin Wall and the free and unfree internet. Chinese articles came back saying that the United States uses the internet as a means to create worldwide hegemony based on Western values.

The issue of Google`s policy toward China was cited as a potentially major development in world affairs, marking a split between authoritarian socialism and the Western model of free capitalism and internet access.

China and America are two of the biggest economies in the world, so it is important for companies to have access to the market in both countries. A year ago, president Trump announced trade war with China, but now seems like a seven-month trade war is coming to an end.

The U.S has accused Beijing of forcing U.S companies doing business in China to share their technology with local partners and hand over intellectual property secrets, but China denies it engages in such practices.

Trump administration is looking at non-tariff barriers in China, including industrial subsidies, regulations, business licensing procedures, product standards reviews and other practices that keep U.S goods out of China or give an unfair advantage to domestic firms.

Visa and MasterCard have waited years to have access in China and Steve Mnuchin has pushed for China to open its market for them. But the clock is ticking and time is running short of the March 1 deadline to resolve the dispute or see U.S tariffs on $200 billion worth of Chinese goods rise from 10 percent to 25 percent.

Access to the Chinese market will help companies like Pinterest and other companies a lot. 50 percent of the world’s population live in Asia but it wont help if they spend most of their time on protectionism, nationalism, authoritarian behaviour, censorship, socialism and communism.

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 Emmanual Macron criticized President Donald Trump for being a Nationalist but should take a lesson from him

French President Emmanuel Macron criticized the U.S President Donald Trump a few weeks ago. Macron said Trump was a Nationalist, and Mainstream Media (MSM) followed up to say that Hitler was also a Nationalist. Wow, what a comparison.

What journalists in the MSM is not telling people is that even Mahatma Ghandi was a Nationalist. The National Movement in India and the role of Mahatma Ghandi and Non-Violence is an example. Employing nonviolent nationalist movements as his weapon, Ghandii stirred Indian men and woman to «fight» for independence without shedding blood. But Ghandi was also a populist. Just like Trump.

Ghandi considered himself one, and his mission was primarily the establishment of a free, independent, culturally distinct Indian nation. He used to say that “nonviolent nationalism is a necessary condition of corporate or civilized life.” (As opposed to violent nationalism).

In the book “Autobigraphy of a Yogi” the writer, Paramahansa Yogananda, quotes Ghandi`s own words on nationalism:

“I call myself a nationalist but my natioanlism is as wide as the universe; it embraces all nations. My nationalism includes the prosperity of all nations. I do not want my India to raise on from the ashes of other nations. I do not want India to ever exploit any human. I want a strong India able to transfuse its strength to other nations.Today, none of the European countries does this; they do not transfer power to other nations.”

Ghandi was also a populist. Who know that? Populist rule is bad for democracy, but despite that, we can see that populists are being voted into office in country after country. Narendra Modi win elections when the institutionalized ties between non-populist parties and voters decay.

But there is a big difference between the populism we see outside of the U.S than inside. Trumps populism is good populism while many of the other populists are bad. Trumps plan is “America First,” and that`s why he is cutting taxes, made a lot of reforms and negotiated better trade deals.

There is no doubt that European Union is important, but at what cost? Take a look at President Macron. The man who talked about Trump`s Nationalism in his speech while MSM followed up with Nazi stories.

But who is in real trouble here? Rebels in Paris blasts Mr Macron for his gas tax hikes. The opposite of what Trump did. He cuted the taxes and the U.S economy is booming. The U.S unemployment is low while it remain high in France.

This is not the fist time I`m writing about the protesters in France. This is something that has been going on for years and decades. France need to do something to make a change, but do Macron have something to learn from Trump? It remains to see.

But it seems like Macron is doing the opposite of Trump who are a Nationalist and a Patriot. Trumpis doing what he can to protect his own citizens. Its all about "America First" and he wants to Make America Great again. Whats wrong with that?

President Macron is a part of the European Union which is driven by faceless bureaucrats. A collaboration the United Kingdom wants to leave. A collaboration that communist Jeremy Corbyn want to join again. Done by a second referendum.

But Paris rioters steal police rifle and torch cars while they are protesting fuel taxes, but the demonstrations are also an indication of growing animosity toward Macron. President Trump is on his own people`s side but President Macron seems to be against his own people with bad decisions.

People in France believe that Macron is serving the interest of the EU and not the French workers. A President should represent the people, “We the People,” but the French protest movement, known as jilets jaunes (yellow vests), are protesting against its own President and the state of France`s economy as well.

President Macrons popularity is low and will be so for quite some time, because he has given no indication he will bend to the peoples demand. This will give Macron`s political competitors like Marine Le Pen a huge advantage.

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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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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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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Tesla and Fiat Chrysler is up about 80% since the election

The focus now is how Donald Trumps policies are going to "Make America Great again". One of the first things Trump did was to shut down the TPP agreement, which is favoring TPPs laws before the constitution.

Trump do not blame Obama for this TPP agreement because this is something that has been negotiated in decades. Trump is a business man and he do things he belive is right for the American people.

 

teslafiat

 

Trump can start a new global trade war and that means off for global equities, but what will happen if he starts a tax-cutting war? Countries around the world will start to compete to lower tax rates and that will probably make companies to invest and hire more, which is positive for equities.

President Trump has tweeted a lot about the automotive industry over Twitter, and after a few hours in the White house, he made a point to meet with the chief executives of Tesla and Fiat Chrysler. What Mr Trump want is to press the companies to build more vehicles in the U.S and hire more Americans into manufacturing jobs.

Reduced corporate taxes will surely please executives. If the automotive industry work together with the government, it will improve the environment and jobs creation and the competitiveness of manufacturing.

Trump`s decision to withdraw from the TPP is a largely symbolic move since it was unlikely to pass Congress. It was a strong symbol of his desire to implement policies that improve competitiveness and a new renaissance in American manufacturing.

The mother of all trade barriers is currency manipulation, and TPP failed in meaningfully dealing with that, and the automotive industry appreciate Trump`s courage to walk away from a bad trade deal.

Tesla and Fiat Chrysler combined is up about 80% since the election. Tesla has been a great rally since the beginning of December last year. It has so far been a great ride since its IPO in 2010, and now the average analyst`s recommendation is a Hold.

Fiat Chrysler look very cheap but a new scandal casting a shadow over the company. The company has doubled its value in a very few months but the scandal makes it risky for investors at the moment.

Trump met Tesla`s chief executive Elon Musk and the President told executives that he intends to eliminate a majority of regulations and «massively» cut corporate taxes, but that in return those companies must keep production domestic and preserve American jobs.

Trump told the CEO`s to device a «series of actions» within 30 days.

 

trump100_b

 

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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