Investment

The Securities and Exchange Commission (SEC) has been reviewing the ways that brokers trading every day

The Securities and Exchange Commission (SEC) has been reviewing the ways that brokers trading every day. Investors are worried that the way millions of everyday global investors buy and sell stocks is going to change. And this change will be bad news for so-called free-trading apps like Robinhood as well as other similar business models.

When an investor buy or sell stocks on an app, the trade seems to be instantaneous. But, this buy-sell action is a complex process of Wall Street players exploiting tiny differences in prices to rake in huge amounts of cash.

Here is now it works:

When you place a buy or sell order, your broker for example Robinhood takes your order to a firm known as a wholesaler or market makers – the middlemen who are supposed to get you the best prices and who pay the brokers for the privilege of executing the trades. They typically make pennies off each transaction.

And the process above is called “payment for order flow”. Now this process has come under scrutiny by regulators due to the fallout from the January 2021 run-up stocks like GameStop.

The SEC are likely to roll our new rules as early as this Wednesday. One proposed new rule will be added more competition at the middleman level to ensure retail investors are really getting the best prices. It may also mean trading orders will be routed into auctions where trading firms would have to compete to execute them. In the future, investors may need to pay more trading fees on so-called free-trading apps.

Image source: https://www.pexels.com/photo/silver-iphone-2068664/

Investment

The global economy is on the edge of a precipice

The global economy is on the edge of a precipice, and it may be the biggest crisis since the Second World War.

The invasion of Ukraine has compounded the effects of the Covid-19 pandemic. It brings the cost of the food and fuel to skyrocket which weighing on the economic recovery and fanning inflation.

Rising interest rates are putting more pressure on countries, companies, and households. Climate changes, market turbulence and ongoing supply chain constraints also make the situation become more worse.

To lower economic stress, the IMP is calling for government officials and business leaders meeting in Davos to discuss reducing trade barriers.

However, earlier this month, Indian government decided to ban the export of wheat and it triggered the price of grain soaring. Some countries are heading in the opposite direction of IMF and implementing restrictions on trade in food and agriculture products that could probably exacerbate the shortages and push the prices even higher.

Image source: https://www.pexels.com/photo/american-and-chinese-flags-and-usa-dollars-4386371/

Investment

“Fragmentation” is underway

“Fragmentation” – one the many buzzwords heard around Davos this week. “Fragmentation”, it is referring to a breakdown of the kind of free-wheeling, border-crossing trades and investments which have built the global economic order over the past three decades. It also means “deglobalization” – rebuilding fences between nations and nations.

Deglobalization won’t happen overnight but it is not a new issue. Supply-chain disruption, war in Ukraine, growing political divides and trade disputes are renewing concerns about a return of an era of isolation.

Here are the micro-deglobalization playing out in real time:

China’s ride-hailing giant Didi officially delisted its share from NYSE

Starbucks and McDonald’s pulled out of Russian market

Airbnb said it would pull all of it listings in China

Malaysia moved to restrict exports of Chicken to its neighbors

Microsoft slowly scale back their China practice

These supply chains have been built over 30 years, so it’s just really difficult to move them into another country. The US baby formular shortage is a huge public health crisis that indicates the peril of relying too much on domestic production for essential goods. It is far more complicated if governments around the world are doing deglobalization.

Image source: https://www.pexels.com/photo/antique-antique-globe-antique-shop-antique-store-414916/

Investment

Precious metals hit hard as Fed Chair Powell Stays


Gold and silver futures were sharply down the U.S. trading session Monday while President Joe Biden confirmed Federal Reserve Chairman Jerome Powell for his second term. The precious metals prices were under a huge pressure and selling pressure accelerated overnight. 

December gold was last down nearly USD 41.10 at USD 1,810.4 and December Comex Silver was last down USD 0.421 at USD 24.36 per ounce.

Someone argued that another term for Powell was just an excuse for bullions future traders taking profits after recent good price gains. Some analysts believe bullion markets are likely to continue to be supported by the inflation trade and to be sought out as a hedge against rising and even problematic price inflation.

Investment

Transitory Inflation Sparks the Fears of Economic Slowdown

The Federal Reserve left interest rate and monetery policy unchanged. This indicates that the US is incomplete economic recovery until now.

Some economic experts believe that Federal Reserve will be wrong on inflation being temporary. From my point of view, it is quite difficult to predict inflation at this moment. Fears about the highly contagious Delta variant of Covid-19 leading to another round of economic slowdown. However, rising infection cases will cause more supply chain interruptions leading to more inflation. 

Meanwhile, some leading companies expressed that they are passing rising costs along to consumers which point out that some inflation will stick around.

As there are industry raw material inflation and higher transportation costs, implementing additional prices increases become necessary.

Another concern is that it is stagflation instead of transitory inflation. That toxic combination of slowing growth and rising prices is a real risk and a dangerous signal of stagflation.

Theoretically, stagflation will trigger bullish markets for commodity and bullions. If there is rising inflation, investors will look at hard assets including bullion markets, like Gold, Silver, Platinum.

Do you believe that bullions prices are starting to rise again?

Let me know your thought.

1 oz gold Canadian Maple Leaf Coin
Investment

Safe Heaven – Bullions Markets

When stock markets plunged around the world, buying bullions will be one of the ways to preserve your wealth.

Do you know that the bullions like gold and silver have a significately increase in the past two year? Bullions investments have not been in the spotlight before the pandemic, However, they are rising enormously during the pandemic till now.

Bullions will surely become one of safe heavens during the volatility of the stock markets. Furthermore, some analysts believe that once pandemic is over, ecomony activities will rebounce in the speed that we cannot imagine. They believe there will be a strong demand on Silver, Platinum and Palladium.

No matter you believe or not, buying bullions is a good way to diversify our investment portfolios. Remember the rule that do not put all your eggs in one basket.

Do you share the same idea with me? Let me know your thought.

Investment

Influences of Chinese Investors in different Areas

China may become the World’s second-largest economy behind the US.

HSBC

One of the China’s biggest insurers, Ping An Insurance (Group) Co. is the second largest shareholder of HSBC Holdings PLC. Ping An said that the investment won’t influence how the U.K. based bank is run.

 

AMC

One of the largest movie theater chain around the world was bought by Dalian Wanda Group which runs by Chinese business Wan Jianlin for USD 2.6 billion.

 

GE Appliances

A well-known iconic company in US was partly owned by a Chinese Company, Qingdao Haier. And the acquisition deal was USD 5.4 Billion.

 

Motorola

One of the early leader in telecommunications space previously now was owned by one of the famous Chinese enterprise, Lenova. This makes Lenevo become the world’s third-largest smartphone maker around the world.

 

Football

Chinese investors are interested in Football as well. Chinese billionaire Tong Xia owned Aston Villa.

 

Infrastructure Business

Chinese Investors and businessesmans own stakes in key infrastructure businesses in the UK such as Heathrow Airport and UK power Networks. Chinese investors have also bought up stakes in Thames Water which is another key infrastructire firms in the UK.

 

Education

Schools in the UK which owned by Chinabacked enterprises:

  • Bournemouth Collegiate School
  • St Michael’s School in Llanelli, Carmarthanshire
  • Bosworth Independent College in Northampton
  • Bedstone College in Shropshire
  • Ipswich High School
  • Kingsley School in Bideford, Devon,
  • Heathfield Knoll School
  • Thetford Grammar School in Norfolk
  • Wisbech Grammar in Cambridgeshire
  • Riddlesworth Hall Preparatory School in Norfolk
  • Adcote School for Girls near Shrewsbury, Shropshire 
  • Myddelton College in Denbigh, Wales
  • CATS Colleges – Campuses are in London, Cambridge and Canterbury
  • Chase Grammar School
  • Abbotsholme School, Derbyshire
  • St Bees School, Cumbria 

 

Let me know if you know more.

My Collections

2021 Republique du Tchad The International Entertainment Series – Mahjong Fortune Copper Coin

This is a one of the interesting items in my collection.

Mahjong Fortune Copper Coin

Mahjong, which has developed in China since many years. And this game is very popular in China, Asia and online. Mahjong is also a game which people believe that it can help elderly people prevent dementia. Care Centres for elderly people in Hong Kong will encourage elderly people to play Mahjong with each other.

I have to declare that I do not play Mahjong and do not know the games rules about Mahjong.

These Mahjong coins are farewell gifts to some of my friends who are going to leave Hong Kong very soon. One of the features of Hong Kong people are playing Mahjong, love to be rich, and love money. The golden Chinese word “發” on the coin is the meaning of “Get Rich and Good Luck”. Wish my friends who will have these Mahjong coins will be rich and always be lucky in other places.

Mahjong Fortune Copper Coin Gift Box
Mahjong Fortune Copper Coin Reverse

Some say: No reason to stay is a good reason to go.

Me: Even if I had a million reasons to leave, I would still look for one to stay. It’s because this place is lovely.

Wish you guys all the best. You will be missed.

Investment

The most stupid thing Didi did: Chose US stock market for its USD 4.4
billion IPO.

Just after Didi raised its IPO which valued nearly USD 68 billion in US stock marking on June 30 2021, Chinese government and Chinese Regulators blocked Didi on Chinese App stores and Chinese Market. It made Didi Global Inc. plunged below IPO price.

Didi is a Chinese ride-hailing company in Chinese and bases in Beijing which provide Chinese customers with taxi hailing, private car hailing and social ride-sharing services. Didi currently has around 550 million users and around 10 millions of registered drives over 400 Chinese cities.

Some analysts believe the crackdown of Didi in its home country means that Chinese government wants more control on Chinese big data as well as a new battlegrounds of US-China trade wars.

Didi is now facing scrutiny over its data security by Chinese regulators. This cybersecurity probe by Chinese regulators also bring out a very strong message to other China’s tech giants: Do not even think about listing in stock market outside China and Hong Kong, especially in US stock market.

For those Tech Giants business owners in China, running the whole business not just needs to be given business consideration, but also a nation security consideration and patriotism consideration.

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