Two of the biggest American companies go into different directions when it comes to China.
Two of the biggest American companies go into different directions when it comes to China.
Apple is getting ready for the trade war.
With China and USA settling for the talks on current trading situation and trade tensions there is still a lot of things to consider before sitting at the table. And it seems that there are major American companies that don’t really believe in the successful outcome of these talks. Like Apple. That only company in the world that costs trillion dollars is pretty much the point for proudness for the USA. And right now it seems that the company really does have the potential to lose the trillion-dollar-business title with the focus shifting to other matters.
It seems now that Apple is going to wrap up its plants in China and bring production sited back to the USA but we don’t think that it is what the company is supposed to be doing right now. With the ground still shaky under that trillion of dollars there is a lot of things that should bother representatives of Apple but this relocation of production back to the US soil can both harm Apple and do good for the economy of the US.
Although the whole situation is rather peculiar because it brings us to the question whether Apple know something or just panic ahead of time with no ground underneath the whole situation. But back to the company. With the focus shifting even for the short span of time to this relocation the company may lose what it takes on order to withhold their newly-acquired status.
Although with amount of people working for the company in the first place it is not as scary, but still possible. plus. Imagine. One plant closes and another needs to be open. Imagine the worst case scenario – USA and China fail to make a deal and China imposes sanctions on Apple as the biggest American company that chose to locate their production in China. And Apple must go form Chinese soil as quickly as possible or face fines. Either way move like that can cost a lot for the company as big.
But American economy and American people on the other hand can benefit from the situation. With production as big as this one coming home a lot of work place will be created although here Apple will also look into bigger spending as the would be able to pay American workers as little as the pay the Chinese ones now.
In any case however you look at it there are losses in Apple’s future. And investors are not going to be happy about them that’s for sure. We are free to draw our own conclusions here.
Google is making changes.
With so many talks about American companies leaving Chinese market in order to escape losses it is surprising to hear statements from something as big as Google that they are actually planning on opening up again in China even though the company isn’t really working in China. According to the official information Google’s CEO Sundar Pichai wants to turn China into testing ground for the new search engine that is now being developed.
Since the information was released Google’s shares fell to the lowest level since the end of July. We can’t wrap our minds around the situation, to be honest. Why would Google want to work with China and why they started it at this stage? Although there is a pretty clear answer looming over us. Which is profit. It seems that Google are not developing a simple search engine, but a search engine that is going to comply with the censor laws of China. And imagine – it will be the only American company to do so.
China is the most populated country in the world. And profits from the ordeal like that are going to be enormous. With Google not being a simple little search engine company but a conglomerate that is known around the world and that own tens of other services it is only natural that they are going to look for the new ways to gerd revenue as most of their target audience has already been found.
So, what do we have now? The project is too uncertain to long Google’s shares right now. Plus, the fact that the project is going to be a success is too far-fetched. Waiting for the next piece of news in this direction is going to the first thing to do, because risk is not something we can afford right now/ although we have to admit that the whole perspective is too attractive.
Lira is stronger now.
Did you sell all of lira off, if you were trading it at all? Well, it seems that despite all of the disbelieve Turkish currency is going to live after all. Although country has been plunged into the critical situation it seems right now that the worst is beg=hind us. It worth to say that It only seems that way as the situation also points to the fact that we are to await answer from the USA.
Even though his national currency lost about the third of the value over the course of the week Erdogan didn’t hesitate in taking hits against the USA by saying that Turkey will no longer purchase iPhones. Do you think that the USA are going to leave something like that without an answer? We doubt it as Trump appeared to be ready to answer everything that comes his way. so do not hurry to invest into Turkish economy just yet.
It is likely that Turkey, along with other emerging economies is going to take another set of hits. Moreover, it seems that the USA already know what the blows are going to be like as the new package of sanction is prepared and all ready to go. So we have all the ground to say that the crisis os far from over from all the emerging economies such as China and Australia.