Apple are in trouble over Trump.
Apple are in trouble over Trump.
Belarus ruble takes a long fall.
Those, who are often involved with more interesting and exotic currencies might have stumbled upon Belarus ruble. Quite a big country West of Russia and North of Ukraine the economy of which has been tied to Russian ruble since the day the Soviet Union broke up. And, with its more popular and widely traded counterpart – the Russian ruble being very vulnerable and shake lately it is no wonder that Belarus economy is not an example of stability right now.
In fact, there has been no growth to the currency since August, 24. It is hard to keep track of what was happening at that time but with sanctions packages hitting Russian ruble on weekly basis it is safe to assume that one of them has hit Belarus ruble as well. Plus, there is really no heavy production sites in the country, with the economy being oriented mostly on the natural products and agriculture, so no big boost is to come from the investors any time soon. Just like it didn’t come before.
In his turn, Belarus president Alexander Lukashenko has rejected help from International Monetary Fund. The people of the country would be shocked by the debt obligations that usually comes with the loan from the organization. But is to become of Belarus ruble is there is absolutely minimal international interest to the country?
Well, for starters the most important factor is the one, that Belarus is to tightly ties to Russia. At this point there is no way that Putin is going to let Lukashenko re-direct his country to follow Europe. So BYN is just going to have to remain as shaky as it is right now. But for how long can it stay like that? We would say that for a very long time. Until Russia stands, so will Belarus as well. Although the position of Russian satellite is less than desirable for all of the countries, surrounding the giant. And for Belarus primarily.
Striving for their own kind of stability Belarus government is going to issue national bonds on Chinese and Russian markets around 2020. But until that time BYN trading is going to have to remain just as unstable as it is right now. Unfortunately for traders - one less attractive assets for international trading to be as versatile as possible.
Will there be Korean hub after all?
A lot of traders and investors are waiting for the possibility to invest and become a part of a new Korean hub that could just be the next big thing for trading world. We got a glimpse to what the world might be like when Trump’s meeting with North Korean leader Kim Jong Un followed the reconciliation of the leaders of North and South Koreas. That was a truly beautiful moment for the world that brought hope to us all. but after that things got to business-as-usual state. North Korea came under new American sanctions because of the nuclear program and Koreas went to ‘not speaking’. But there is still something to look out for.
Of course, Korean collaboration is bad news for the countries like China and Japan. Why? Because in case North Korea goes available for international businesses, it is going to be very cheap for the big conglomerates to build production sites and hire local workers. Low level of life in North Korea is going to attract a lot of businesses in the country. It is going to boost Korean budget all the while driving attention and investors from the good and old companies located in Japan and China.
Chinese economy is already damaged so it wouldn’t be surprising to see it going through with new economic propositions for investors to stay with them. Although at this point there are not so many factors that can keep investors in in case there is something more interesting and attractive just nearby.
You must be thinking why are we talking about Koreas all of a sudden? Well, because right now South and North are discussing the possibilities for some collaborative programs in social and economic politics and it seems that in the long run Kim Jong Un hopes to join the two Koreas into one country. Which would lead to everything described higher. And while it is good news for us as traders, it is bad news for the Chinese and Japanese.
Although, of course, something like that might take decades to be brought to life it is still worth looking out for.
Apple to take massive trade war hit.
Manipulation. That is the only word that we can think of to describe latest statement by Donald Trump, concerning trade tensions between China and America. It is no secret that the Presidential campaign led by Trump in 2016 was under the motto to bring everything American back to America. And it is quite possible that the plot is finally going to work.
Apple’s shares fell with Presidential statement in his official Twitter account reading that Apple production may increase in price due to another sanctions package that may be imposed on China by the US. In return Trump offered Apple a zero percent tax proposition – to bring production back to the US. With no official reply from the conglomerate, shares’ prices tumbled. And that is right before the three iPhone models being unveiled this week, do it is probably not the last time we are going to talk about Apple this week.
Will Apple give into Trump’s plan? Either way traders will be lost on the company. And there is a lot for the company to lose here. If they don’t bring productions plants to the US, their products are most likely to increase in price. If they do bring them back to the US it will be obvious that one can manipulate an organization this big and serious via monetary policy, which would mean that any President’s desire could be manipulated via tariff game. And that concerns any future President as well. Not good for the future Apple reputation.
In any case. Apple are in serious trouble. If the new iPhone models are no accepted well, company may lose their trillion-dollar-company status. Very soon. And if that happens Apple will become one of the most unattractive businesses in the market. Not something we want to see. Anyway, we are going to have to wait until Wednesday to see where the situation is going to turn with the new iPhone models.