Should we expect a raft of fund raisings in the short term?

Should we expect a raft of fund raisings in the short term?

The Dow Jones index recently hit an all-time high amid hopes that the economy was growing at a rate which would not prompt a rise in interest rates. The market has fallen back a little after better than expected employment figures suggested a possible short-term interest rate rise. However, there seems to be a growing confidence amongst investors and analysts.

Might we see a raft of fundraisings?

There are two trends which tend to indicate that a particular index is possibly overextended in the short term. These relate to highly rated IPOs and equity issues to raise new funds. So, should we expect any of these trends to emerge in the short to medium term? Continue reading “Should we expect a raft of fund raisings in the short term?”

Is Facebook about to move into financial services with Libra?

Is Facebook about to move into financial services with Libra?

The launch of Facebook’s own cryptocurrency, Libra and wallet function Calibra, has caused an array of very different views to be expressed in the mass media. Many believe that this will help to reduce international money transfer costs while others suggest the company is simply exploiting its access to potential users. Interestingly, Mark Carney, the governor of the Bank of England, has given a very positive overview of the situation suggesting that competition is good. He also floated the idea of allowing companies such as Facebook, with its forthcoming Libra cryptocurrency, access to deposit facilities with the Bank of England.

Moving with the times

Whether governments and regulators like it or not, cryptocurrency’s are here to stay and no amount of regulation can put the genie back in the bottle. As a consequence, it is now time for central banks, governments and regulators around the world to work together with cryptocurrency companies for the good of consumers. The main problem for regulators is the fact that large and influential cryptocurrencies could in due course replace a significant amount of recognised currency deposits. How’s this an issue? Continue reading “Is Facebook about to move into financial services with Libra?”

What are the signs of a pending stock-market crash?

What are the signs of a pending stock-market crash?

The simple answer is there are no definitive signs of a pending stock-market crash, otherwise everybody would sell up and leave the market! This may sound a little obvious but it is true. If you look back in history the voices suggesting a pending stock-market crash will more often than not be drowned out by those who kept on pushing prices higher and higher. This is best described as the ultimate bull market.

When pessimists turn positive

One of the more common characteristics of a market which may be ready for a “correction”, or even a crash, is when the most pessimistic analysts/investors begin to turn positive. When there are people positive and those negative on the short, medium and long-term outlook for stock markets, this gives a balanced approach to share price ratings. When everybody turns positive or everybody turns negative than this balance is removed. Continue reading “What are the signs of a pending stock-market crash?”

Donald Trump forces Chinese President to the negotiating table

Donald Trump forces Chinese President to the negotiating table

Love him or loathe him, Donald Trump does have a fairly unique way of getting things done. US stock markets surged on Tuesday after it was announced that Donald Trump would meet with his Chinese counterpart, Xi Jinping, at the forthcoming G-20 summit. Those who are following these controversial trade talks will be aware that Donald Trump warned China that non-attendance of the summit could lead to further trade tariffs. So, what can we expect?

Markets hopeful

Behind all of the swagger and comments, tweets and insults, Donald Trump needs to agree a trade deal with China as much as China needs a deal with the US. These are huge economies and it is inconceivable that they will not be able to come to some kind of arrangement in the short term. The summit begins on 28 June with the two presidents likely to meet towards the end of the week. It would appear that work is already underway to agree broad terms with the hope that the two leaders can agree the fine print. Continue reading “Donald Trump forces Chinese President to the negotiating table”

Is Donald Trump overusing the tariff card?

Is Donald Trump overusing the tariff card?

Just a few days ago Donald Trump threatened to impose tariffs of 5% on Mexican goods and services sold in the US. He has been growing ever more concerned about immigration from Mexico to the US which at times appears to be uncontrollable. While his threat to impose 5% tariffs on Mexican goods and services was met with derogatory headlines, it seemed as though it has done the trick.

Mexican government responds

There are reports today that Donald Trump has withdrawn his threat to impose 5% tariffs on Mexican goods and services. It would appear that the Mexican authorities have authorised the use of 6000 army personnel to control immigration from Mexico to the USA. How long this will last remains to be seen but it is certainly being taken as a victory for Donald Trump. However, has he now used the tariff card once too often? Continue reading “Is Donald Trump overusing the tariff card?”

Donald Trump forging stronger UK relations

Donald Trump forces Chinese President to the negotiating table

While Donald Trump’s official three-day visit to the UK has caused controversy, so far he has been on his best behaviour. A banquet with the Queen last night was followed by political talks today and Tuesday will see a celebration of the D-Day landings in Portsmouth. This comes at a time when the president is under enormous pressure back in the US with Chinese trade talks failing and punitive action taken by all parties involved. So, could Donald Trump strengthen US/UK relations and forge a new trading arrangement?

Talking the talk

For all his bluster and twitter comments, those who have met Donald Trump tend to speak relatively highly of him. He can be controversial, he can be impulsive but surprisingly many of the UK public are starting to warm to him. The pomp and ceremony of his arrival and a banquet with the Queen are now in the past and in many ways it is “down to business”. Today has seen an array of politically motivated meetings with various Tory party leadership candidates. Theresa May has also been advised to “hang around” to seal a significant UK/US trade deal although she is unlikely to extend her reign. Continue reading “Donald Trump forging stronger UK relations”

Is artificial intelligence the way forward?

Is artificial intelligence the way forward?

Artificial intelligence (AI) is most certainly the buzzword across each and every business sector. Where there is human interaction there is the opportunities to use AI to the benefit of businesses and customers. However, is AI really the way forward?

Biggest challenge, trust factor!

There is no doubt that one of the biggest challenges for the AI industry is securing the trust of consumers and businesses. We only need to look at the likes of Tesla, using AI autopilot systems, and the highly publicised crashes and unfortunately fatalities. The fact that the system has been used millions of times with no issues is often overlooked. It would also be interesting to compare and contrast accidents involving the Tesla AI system and accidents involving human error. I think we can all guess what the answer would be? Continue reading “Is artificial intelligence the way forward?”

Is PR now an integral part of stock market life?

The world of technology stocks moves so quickly

In days gone by public relations (PR) would often be a simple nod and a wink to let influential investors know what was happening. The situation today is very different with literally millions of pounds spent on PR to keep private investors and institutional investors up-to-date with events. While we asked the question “is PR now an integral part of stock market life” the simple answer is yes!

The tail wagging the dog

Looking at the likes of Tesla, Weight Watchers, Facebook, Snapchat and Apple to a certain extent, far too much time seems to be spent on PR. These are companies which have experienced significant volatility in their share prices with the likes of Tesla, Weight Watchers and Snapchat under serious pressure. Investors are looking for short-term returns, which is switching the focus of directors towards “keeping investors happy”. Surely their time should be spent on long-term planning and returns? Continue reading “Is PR now an integral part of stock market life?”

Donald Trump introduces more Chinese trade tariffs

Donald Trump introduces more Chinese trade tariffs

Donald Trump has announced plans to introduce Chinese trade tariffs worth around $200 billion in a major development. There has been much talk of ongoing Chinese/US trade talks which were initially instigated by Donald Trump some time ago. Many believe that talks were progressing as planned but last week’s announcement by Donald Trump through the markets into turmoil. After announcing plans for $200 billion worth of tariffs on Chinese goods he also suggested more could follow.

Trump blames China

While the details of the ongoing trade talks have been kept very private, Donald Trump has suggested in public for the first time that China “broke the deal”. The Chinese authorities have refuted these allegations and threatened their own round of US trade tariffs in retaliation. However, are things really as bad in the actual talks? Continue reading “Donald Trump introduces more Chinese trade tariffs”

Uber IPO set at $45 a share

Uber IPO set at $45 a share

The much awaited float of ride hailing pioneer Uber is nearly upon us although it seems as though the IPO price will be set towards the lower end of the $44 up to $50 range. If the rumours are confirmed, the IPO will be priced at $45 and value the company at around $82 billion. This is a huge IPO and one which many experts believe will test the market. However, how does the future look for Uber?

Uber has never made a profit

In this day and age it is no surprise to learn that Uber has never made a profit although revenues are growing and losses have been reduced. Revenues for 2018 came in at $11.3 billion which was up 43% increase from 2017. At the same time, the company reported a loss for 2018 of $1.8 billion although this is a slight improvement on the $2.2 billion loss in 2017. Since inception the company has raised more than $24 billion to cover development and ongoing losses. Continue reading “Uber IPO set at $45 a share”