Central Bank of Europe is killing hope for China.
Central Bank of Europe is killing hope for China.
World-wide giant on the slow rise.
When growth of the share prices slows down or stops entirely most of the companies see the selloff that worsens the situation even further. But on the other hand there are certain companies that are going to be attractive even when their growth is not as fast-paced as traders and investors would want them to be. One of such companies appears to be a world-wide coffee maker Starbucks that originated in America. Of course for coffee lovers around the world Starbucks is always going to be the number one company. But in case you are an investor in Starbucks there is a huge chance that the performance of the stock wasn’t as satisfying to you.
Why is the fall there? It seems that with international company like Starbucks there might be no fails as support to the stocks comes from both – investors and consumers. But today consumers might not be as thrilled about the coffee-making chain.
In today’s world where people have money it seems that consumers are more interested in supporting something cozy and local instead of world-wide giant. So the shares for smaller local chains are surging and international companies are losing. For example – Starbucks’ shares peaked in May 2017 when the price per share was $65. Right now it is about 17 percent lower than the all-time best price.
Plus, it seems that Starbucks think they are too hot to enter the countries in which, according to the company itself, their production is going to be too expensive for the consumers. Well, that is simply not nice of a statement and it is easily one of the most controversial decisions made by such business in the recent history. Of course, investors who live in the countries rejected by the company are going to sell an unfriendly stock off. So, what can Starbucks offer us now in order to recover from the situation?
Well, for once there is a deal with Nestle which allows Nestle to sell Starbucks merchandize and production. the deal was worth nearly $7 billion. That is a promising collaboration and in the nearest future it can bring per-share profit to each of the companies.
Regardless of the behavior of the company, new coffee shops are opening all around the world regularly. So the profit keeps coming in. that is a direct guarantee that the shares are not going to lose 100 percent of the price ever.
What happens to oil prices?
Oil prices have been most unstable lately. They can gain value one day and then lose it the other and keep on losing three days in a row after that. That doesn’t seem like the asset that is reliable and attractive for trade. But this week we have seen nothing but growth. So, what is happening?
Well, for once we can say that markets have nothing to do with the oil prices. Nor does the dollar behavior. It is nature itself that decided to make some changes in the price. You see, there is a huge hurricane going to the coast of America as we type and trade at this minute. And with supply being possibly under threat for some tine prices began to surge.
Unites States output has already been cut by the winds and we can see that even in the futures prices. WTI closely gets to the $70 per barrel price. And all of the situation one more time shows us – the less there is of an output, the higher is the price, and possibly the less there is a demand.
With prices higher and higher demand is going to fall over time and people are going start looking for decision other rather than oil. In that moment companies like Tesla are going to be leading in the markets. But right now the demand is still high. And that is why we have to watch the prices closely. They are not going to go down any time soon. Of course, hurricane is going to pass at some point and the output is going to come back to the usual pace, but we can enjoy the high prices for the cruse now, even though it is a pure display of how unstable this asset really is.
EU undermines out faith in China.
Central Bank of Europe has held a meeting that marked a 10th anniversary of 2008 financial crisis. Unfortunately, the topics for the meeting were very alike to the main reason for it – looming over us financial crisis that can strike at any moment. What is the main trigger for that? Well. CoE seem to think that Chinese financial system that has been weakened by Trump will be the switch on the crisis this time.
In the meantime, while such accusations are thrown around, Chinese stocks and indices are in the worst selloff since 2002, according to the numbers. And there is enough damage done to the Chinese economy even without the statement by the Europeans. So why do that?
Of course, there is always something like sharing an opinion on the current situation, but looking at the situation in the world we form our own opinion that is not as positive for China. It seems that the world decided that they do not need strong China and decided to fail it. But in this case it is not true. The whole world used to rely on China when it came to chap production of goods and details as well as a relatively not expensive labor. Everyone went to China for that. But right now?
It seems that the world is tired of a force as big as China in the East, so there was a decision to simply crash it. But no one thinks of us – traders in this situation. With Chinese indices as low as they are right now there is seemingly no end to the fall and losses and it seems that Chinese trading in particular and Asian trading in general is never going to be stable.
With no help from the outside Chinese are left on their own to recover from all of the mess they were put into. We as traders can only do one thing here – no selloff! We can only give it time to recover. Otherwise both us and China are going to suffer from the losses no one needs.