USA and EU relations are in hot water again.
USA and EU relations are in hot water again.
Polish currency fell almost 1 percent against dollar.
Poland is not one of the most important country in the European Union. Because of the weak national currency, the government can’t transfer it to euro usage even though Poland has been in the union for quite some time. But lately Poland has been turning heads into its direction because of some controversial laws, signed in the country. And today PLN (Polish currency) is down. All because of the pressure from the EU.
The second court deal was opened in EU against Poland this time because of the reformation of court system in the country. Because of the decision to push through with the changes Poland can easily lose the right to vote in the EU parliament as well as financial help from the EU. The main problem is that EU doesn’t accept that changes going on inside the country. But why is it important? It seems that lately not a whole lot of countries agree with the united European policies. Some people see precedents. We see the tendency.
First kick came a while ago – Brexit. A whole country voted against being a part of the European Union and, by the way, not so long ago the Queen approved of the process; then there has been Italy. Do you remember a month ago, when there was a fear of EU crisis? That was because of the new Italian government that threatened to go British way. Now there is Poland, the government of which goes against the EU laws and as a result can be left with no help for the Union. Is there a Polexit behind the corner?
All of this is a scaring tendency. It is doubtful that Merkel will be enough to keep EU in its current borders. Macron will also be re-elected at some point and all of the powerhouse of the Union will be held by a sole will of the countries to live in the unifies alliance. But what if in the end it is not enough? EU can simply fall apart at some point very soon. And where there is no EU there is no euro. No need in the currency. A financial collapse of the region can simply turn EU countries in post-Soviet Russia that live through the horror of the 90-s.
Right now, the officials of the EU are to be very careful with Poland as organization of another referendum is easier that to keep the Union together. We can become the witnesses of the people of one country deciding the fate of millions.
Trump escalates the conflict between EU and USA.
It seems that Trump’s paranoia is reaching new peaks. We know that that sounds harsh, but there is really no other word to describe the behavior of American president. Virtually every day we talk about different ways that his policies can harm world’s economies. And there has be no other precedent during the recent time. No other world leader who had the fate of the balance in his hand behaved as recklessly and carelessly as Trump does now.
The reason for us to talk about this once again is the recent claim of Trump about WTO. He stated that if the USA are not respected “something will be done”. But that is simply not acceptable. The claim was made because of the European statement concerning automobile tariffs, imposed by the States. EU officials said in the end they will only hurt American production. And that is okay, to let an opponent understand that the answers will be given to every rapid action. But it seems that Trump wasn’t ready to receive any kind of pushback. So, what are we supposed to do? Sit back and look at how America rules the world? The answer there is clear for both sides of the conflict.
Dollar reacted instantly, having lost 0.2 percent against the basket of six major currencies. Not a lot but given that there have been slides before that there is a bad tendency for the greenback and even worse for Trump. After all he caused every slide. Euro is supported by the success of the Brexit talks and work of Marcon and Merkel on immigration policy. Of course, the region has a lot of problems. But it has support as well. Dollar on the other hand has nothing to support it other than positive international policies. But those are nowhere to be seen at the moment. That is the reason and main threat for the low dollar.
Until the tension between the USA and their former partners resolves it is doubtful that we are going to see a really strong greenback.
Apple shares are on the rise again.
Apple shares have had uneven performance in the last month. There has been a lot of going down and some of the investors gave up the idea of recovery for the stock up to the level of $200 per share. But we think that there are reasons one should buy their shares.
First of all, Apple never run out of idea. For the rest of 2018 they have planned quite a lineup and although their latest development – iPhone X wasn’t a success the demand for their production never runs out. And there is a lot of hope put on the newest model of their iconic smartphone. And we also think that with all of the mistakes made and learned by the company there will be no failure this time.
Increased sphere of influence. There are a lot of other profitable projects, launched by Apple. AppleCare+, App Store offers and Apple Music. All of that is set to bring new auditorium to Apple. With the popularity of their production already, there is no doubt that more conveniences will only broaden the sphere of their influences. Of course, there will always be people who will swear by Samsung and Huawei, but Apple is undoubtfully is an iconic phone with hundreds of millions of people using them around the world. Such a broad auditorium ensures profitability of the company.
Natural cycle. It is okay for the stock to go down and then up again. So right now, there is really nothing to worry about. There is no panic and sell-off around Apple shares. That means that traders and investors choose to wait the fall out, holding onto their shares. And that means that sooner or later the stock will get the much-needed support and the price for it will go. And we think that that is exactly what we are supposed to do.