21.06 - trade tensions may turn good for China
- by Anna K.
Although the talks are still there it seems like the world is getting really tired of talking about the trade tensions and is looking for the special place to avert their eyes.
We have to be frank. Although Facebook is the biggest social network out on the Internet we never though that its stock would actually recover from the privacy scandal along with the trust of the investors. But as we can see today, that isn’t exactly true. For the last two months Facebook stock gained 20 percent of value and now has breached $200 per share price. The secret is in the advertising. And giving that Facebook also owns such giants as Instagram and Messengerthere has always been a massive chance for recovery.
Advertising is the key to everything in Facebook story, as we can see. Right now it is pulling Facebook out of the void that the social network has landed itself into with the privacy scandal. Couple of days ago it was stated that Facebook is going to employ ads in Messenger as well. And what do we see happening to the Facebook stock after that information has surfaced? The stock went up. That means that the investors saw the perfect opportunity for more revenue and didn’t really care about the foregone scandal.
Right now Facebook is the fifth company by market cap with $600 billion in company’s pocket. And that is doubtfully the end of the growth for Facebook. You see, ads campaign has only just begun. After seeing what the simple decision to insert more ads into their products can do to the investors executives will employ more ads, even though for the regular users it seems quite impossible with the apps belonging to them. It is quite possible that we are going to start seeing more ads and even more gains of Facebook’s part.
You know, amidst all of the trade war talks it would be quite doubtful to see Chinese company striving for growth right now. After all the controversy and fears have always caused traders to go into the selloff of the stock and crash companies’ hopes for the best. But this time even though the company in question is fully Chinese, there is little doubt towards the successful future of as traders have been waiting for the news from the Chinese giant Xiaomi.
Xiaomi has started talks about orders for the biggest public ordering in about two years. That is a very ambitious move for the manufacturer. But why now? Why with all of the drama surrounding the region, Xiaomi are so sure to make their deal profitable in the next several years?
The deal is that just last week the company has presented its newest development Mi Max 3 smartphone. Given all the technical traits of the model, it will be of no surprise if it becomes the newest hit on the smartphone market. the phone can also work as a tablet because of the big screen and we know that the more functions the product like that has, the more chances for it to find more success. And that seems quite logical in the modern world.
So, with upcoming release it is no wonder that Xiaomi hope for a big success. Share sales haven’t been frequent lately and a sale as big as the one planned by the Beijing based company hasn’t been seen by the world since autumn 2016. So there is also the hype, surrounding sale itself. Moreover, the whole deal can be of a great boost to Chinese economy as the more revenue the companies get, the more taxes are received by China. So with the trade wars and the upcoming plans of Chinese giants for the deal, there is a lot of chance that China is going to be the winner of the situation.
Major central banks are already warning traders and investors around the globe that escalating trading tension is fearsome and can easily become a real threat to the world economic expansion. But we knew all of that already. Any rapid change and/or answer can become the trigger for the crushing economy. But none of that news seems to be scary for the greenback that is only gaining positions. Why so?
Well, the answer is quite obvious. It seems that among all of the currencies, greenback isn’t the one though risky for the traders and investors. None of them caused a selloff and dollar keeps on going steadilyunlike other currencies, which are too unstable for the traders.
The main point is that until the traders see the threat in the greenback there is quite a chance that it will keep on going up. The only thing which may stop it from gaining is the oil disputes that have to over by tomorrow’s OPEC sitting down. It will be very interesting to watch as we will be able to see whether or not oil has that much of an influence on the greenback.