US Federal Reserve increased rates.
For the second time this year US Federal Reserve has increased national rate by 25 basis points. It was also stated that rates will probably go up two more timed by the end of the year. And, as always markets didn’t wait for the response to such news. Problems started in Chinese segment of the market and right ow all of the major points are in the red zone. Officials say that the decision to up the rates comes from the joblessness and inflation rates that do up much higher that was previously expected.
Although the greenback was at such good position yesterday, today the crown of its head was knocked down pretty hard. Is has experienced the largest fall in more than a week – 0.2 percent. And together with that a whole lot of commodities have gone up. Like metals for example.
It has been long known that metals and dollar are on the see-saw. When dollar goes up, metals go down and vice versa. After the Federal Reserve meeting Gold has gained as much as 0.3 percent. An ounce of this precious metals went up to $1.302.96 per ounce which is the best price in almost three weeks. Surely now everyone awaits the ECB sitting down and giving away their decision and the situation for gold may change if dollar feels stronger again, but imagine what happens after the rate goes up again in a couple of month.
There are all the chances in the world that by the end of the year gold will be at its best performance if the greenback doesn’t withstand the pressure of the growing rate and world-wide attention to the politics of its country. Gold will go through the roof if that is the case. And the good news is that we can see the possibility of it happening right before our eyes right now.
Amazon vs. Microsoft – who will win? (long-read)
It has been known for a long time that Microsoft was pushed away from the spotlight and profitability place by Amazon. Although both of the companies deal with completely different businesses, they are both connected to the internet. And it is right now the most profitable area of business anyway, so it is only natural that both of the companies will rival for the users’ money. And right now Amazon is winning. Amazon’s shares cost $1704.86 per share and have gained 0.36 percent during the last trading session. Microsoft on the other hand didn’t do so well in the last 24 hours. 0.45 percent loss brought shares to $100.85 per share which is still one of the best performances in a year.
Enthusiasm of the traders and investors has faded away on Microsoft. The rivalry has gone as far as pushing Bill Gates away from the place of the wealthiest man on Earth. But that is personal. We are here to talk about the companies. The fact of rivalry is very obvious as for now even the projects of the companies look the same. Amazon decided to go and try making a grocery store which will be fully automatic with no staff required to help out the customers. And here we can see Microsoft going for virtually the same thins. The conglomerate wants to make a store which will not need any cashiers. Concepts are the same right? But will it be good for Microsoft? We are most concerned about this company as it hasn’t been exactly doing good lately.
More people turn to smartphones, dropping laptops and PCs. It seems that the newest computers and accessories are only bought by IT people and gamers who need constant upgrades to escape lags. Other groups of people mostly need computers in their workplace and nothing more. So Amazon is the winner in this situation as people can people can make purchases from them vie every device possible. And that is why the company is doing so much better lately – demand for it is not going lower while Microsoft…
But still. Aiming for the same project just like you competition’s seems too low. And there is a high chance of failure too. And what will happen to Microsoft if it does fail? Lowering demand and overall failed endeavors of the company will take it to the bottom… you know, market cap wise. Profitability of the company has also been falling and that means less investors who are going to trust the company with their money. Traders will probably sell off all of the shares they are holding and that will result in a total collapse of Microsoft.
Just imagine! One misstep, one bad idea can ruin a whole empire and undo years of work. It is almost fascinating. But the officials of the company should really think about the decision they make along the way now. With dollar possibly getting weak, American economy itself might be under threat soon and that is when no company will be safe from changes.