As many northern hemisphere investors get their feet back under their desks after the summer break, we look at the key events and themes likely to be on the agenda for September and the fourth quarter of 2018. 1) Global trade negotiations The US and China held fresh, and largely fruitless, trade talks in August. The economics team at Schroders believes that the dispute is likely to be prolonged, and persist beyond the US midterm elections in November. The US implemented tariffs on $50 billion of Chinese imports in two stages in July and August, and China responded with duties of equal measure. The US Trade Representative, whose role includes managing US trade relations and negotiating with other countries, recently concluded its hearings on a proposed $200 billion of Chinese goods on which it could apply 25% tariffs. This paves the way for further tit-for-tat tariffs, with Beijing having announced a list of $60 billion in US goods that it would target in retaliation. There is a limit … [Read more...] about Ten events that could move stock markets in the final quarter of 2018
What moves stock prices
Elon Musk, the founder of Tesla and SpaceX, was sued twice on Friday by investors for manipulating share prices, Reuters reports. This comes after Musk tweeted a bombshell post this week, bringing forward the idea of the electric car company going private in a deal worth $72 billion. Am considering taking Tesla private at $420. Funding secured. — Elon Musk (@elonmusk) 7 августа 2018 г. According to the lawsuit complaints, Musk lied that the funding for the deal to privatize Tesla was "secured" so as to push shares higher. The move is claimed to have hurt short sellers, investors who borrow shares to later sell them at a lower price and then repurchase them to make a profit. The plaintiffs claim that Musk's tweet was meant to "completely decimate" short-sellers by forcing them to buy Tesla securities at "artificially inflated prices." READ … [Read more...] about ‘Fraudster Move’: Elon Musk Sued for Manipulating Stock Prices Through Twitter
THE summer holidays are upon us and many Brits are off to the Continent - but buying euros can be tricky given the ever-moving exchange rate. Here is our guide to the current state of the market, and how to get the best price when you swap your cash. What is today's pound to euro exchange rate? Following a sharp fall yesterday, just after 9am today the pound was trading at around €1.12. Actual rates for holidaymakers are significantly lower. Yesterday the walk-up rate at Forexchange in Cardiff airport was 90c per £1 - £200 bought just €177. Sterling has plunged against the euro and dollar in recent days as traders bet against the UK currency. It comes after Bank of England governor Mark Carney warned of an "uncomfortably high" risk of a disorderly Brexit and said banks must prepare for a recession. International trade secretary also said there is a 60-40 chance of "no deal" because of stubbornness in Brussels. A weaker pound is better for British exports - but … [Read more...] about Pound to euro exchange rate – what’s the exchange rate today, what affects the price and where is the best place to buy currency?
opinion The Editorial Board USA TODAY Published 11:17 p.m. UTC Jul 15, 2018 The fall of General Electric has been nothing short of spectacular. The world’s most valuable company in 2000, it has been in a state of accelerating decline ever since. It has sold off key units. Just last month it announced plans to spin off its health care division and unload its 62.5 percent stake in an oil field services company. It has also shed value through its declining stock price — more than $150 billion since January 2017. And last month it suffered the indignity of being tossed out of the famed Dow Jones Industrial Average. Naturally, much of the blame has fallen on Jeff Immelt, CEO of the company from 2001 until last year, and on the GE board of directors that kept him on for so long. Immelt has an impressive record for bone-headed and ill-timed acquisitions. He took his storied company into the subprime mortgage business in 2004, just as a credit bubble was … [Read more...] about What the sad decline of GE tells us about America’s cultish CEO worship
This post originally appeared in Money Stuff.I am going to tell you a story about a random company doing a random trade that is close to my heart, not for any particularly important reason but just because sometimes the world is interesting. Intrexon Corp. is a $1.9 billion market-cap biotech company that issued $200 million of convertible bonds last week. The way convertible bonds work is that they are bonds that can be converted into stock: You sell them for $1,000, and at the end of (in this case) five years investors either get a fixed number of shares of stock (if the stock is up more than a certain amount over those five years) or just get their $1,000 back. They are sold to a mix of investors, many of whom are “convertible arbitrageurs” who buy the bonds and sell short some of the underlying stock. The arbitrageurs aren’t betting on your stock price; they’re hedging out the stock risk and betting, essentially, that your stock will be … [Read more...] about Company Lends Stock to Bank. Bank Shorts Stock to Company’s CEO. Any Questions?