Category: Financial News


In this category, Latest Financial News visitors can find everything that Traders-Paradise finds it is related to the educational material existing here. As the name suggests it is news but ONLY related to Traders-Paradise’s tutorials, courses, guides about trading, and investing.

Here the readers can find posts and articles about recession and how to overcome it. Many trading or investing strategies are explained here. For example, why to use open interest strategy when investing, or growth stock investing strategy.
Here, our experts and journalist are taking examples from the real-life. it is usually breaking news, and use them to explain what is the best solution for traders and investors over a given time or related to the particular event.
Also in Latest Financial News readers can find an explanation of, for example, ratios useful to measure the particular market conditions.

Also, Traders-Paradise gives you some clues on how to react to changes in the markets, no matter if it is the stock market, the Forex market, or any other.
The main aim of the Latest Financial Market News is to connect the real events with the theory. Traders-Paradise uses real-life examples to explain the theoretical rules of investing and trading.
Also, when some breaking out news appear Traders-paradise will write about it but at the same time, the visitors will have a comprehensive analysis of what caused that event and how to overcome it.
Traders-Paradise hopes that this category will be very useful for its visitors and that they will find it helpful.

  • Telegram chooses to kill the messages

    Telegram chooses to kill the messages

    2 min read

    Telegram chooses to kill the messages
    Telegram decides to add the option of killing chat history not only yours but also the other participants in the conversation.

    WOW!

    The Telegram has added a possibility for users to delete messages in one-to-one private chats. And not only from their individual inbox.

    In just a few steps, you can delete every trace of communication, both for yourself but sent by the other person in the conversation.

    Of course, it is possible only if you all have the latest version of Telegram. This innovation is revolutionary because you do not delete messages for yourself (if they are written by other ppl). The plot behind is that you may really delete them so no one can see them anymore. Not only the one who sent them to you.

    One of the most famous applications for encrypted communications, Telegram, March 24, introduced the option of deleting all messages.

    How to do that?

    The procedure is simple: keep your finger on the message and wait for the option to be deleted. When you select it, a pop-up window appears asking if you want to delete the message for the other participant.

    Quite simple.

    Feature “delete any message in both ends in any private chat, anytime” is added to the updated version of Telegram 5.5 with the explanation that it offers more privacy and more control.

    The founder of Telegram, Pavel Durov explained on the day of launching this option that it is required because of the risk of taking someone’s old messages out of the context.

    “Over the last 10-20 years, each of us exchanged millions of messages with thousands of people. Most of those communication logs are stored somewhere in other people’s inboxes, outside of our reach. Relationships start and end, but messaging histories with ex-friends and ex-colleagues remain available forever,” he states.

    “An old message you already forgot about can be taken out of context and used against you decades later. A hasty text you sent to a girlfriend in school can come to haunt you in 2030 when you decide to run for mayor,” he added.

    However, not everyone agrees with this interpretation of the “Delete for Everyone” option.

    The US TechCrunch Tech portal, specializing in startups and new technologies, is against to what Durov says.

    ”More accurately it removes control from everyone in any private chat, and opens the door to the most paranoid; lowest common denominator; and/or a sort of general entropy/anarchy — allowing anyone in a private thread to choose to edit or even completely nuke the chat history if they so wish at any moment in time.” wrote this portal.

    In addition, says TechCrunch, the new option allows Telegram users to manipulate edits.

    ”The feature could allow for self-serving and selectively silent and/or malicious edits that are intended to gaslight/screw with others, such as by making them look mad or bad.”

    The competition, messaging app WhatsApp, also allows users to delete a message for everyone in a chat. But the WhatsApp’s delete features is restricted to messages you sent. there is no notification automatically baked into the chat history to record that a message was deleted.

    In Telegrams new feature there’s no record.

    The ‘record’ is killed.

    There’s no indication there was ever a message.

    The Telegram in its blog from March,24 named ”Taking Back Our Right to Privacy” wrote:”Today, we are giving hundreds of millions of users complete control of any private conversation they have ever had. You can now choose to delete any message you have sent or received from both sides in any private chat. The messages will disappear for both you and the other person – without leaving a trace.”

    The Telegram in its blog from March,24 named ”Taking Back Our Right to Privacy” wrote:

    ”Today, we are giving hundreds of millions of users complete control of any private conversation they have ever had. You can now choose to delete any message you have sent or received from both sides in any private chat. The messages will disappear for both you and the other person – without leaving a trace.”

    Also, there is no possibility to reassemble deleted communication.

    Honestly, we are not certain, nor Telegram provides that information, does a copy stays anywhere on their servers.

    Telegram claims “leave no trace on our servers”.

    The absence of such information will easily open Telegram to finger-pointing it’s acting negligently. The offering such delete option with zero protection sounds pretty immoral and irresponsible.

    A year ago Facebook was criticized for testing an alike feature. The incident was called as another Facebook breach of user trust.

    Later, Facebook developed a weakened Unsend feature. That feature gives users the possibility to dismiss a message they’d sent. But it is possible only in the frame of 10 minutes after publishing the message.

    Back to Telegrams new app.

    Only Durov could prove that the messages are deleted from its end too.

    Honestly, it requires unimaginable established server’s memory even for a tiny item.

    If everything as like as Durov said, we could go to his inbox and delete whatever we want.

    Don’t you think so?

    Maybe the new Telegram app is not so bad after all.

    Don’t waste your money!

    risk disclosure

  • WazirX Cryptocurrency Exchange Review

    WazirX Cryptocurrency Exchange Review

    2 min read

    WazirX Cryptocurrency Exchange Review
    WazirX is an Indian cryptocurrency exchange. It is run by Nischal Shetty, Sameer Mhatre, and Siddharth Menon.
    This India’s largest crypto exchange is now open to all countries. They are giving away free WRX Coins for signing up.

    As we wrote before, the Reserve Bank of India on 5 April 2018 directed all banks to end their existing banking relationships with cryptocurrency exchanges and traders. The ban became active on 6 July 2018. The ban was, however, appealed. The final hearing before the Supreme Court in such appeal was on 11 September 2018.

    And now there is in India the largest crypto exchange opened to the traders all over the world.

    In its blog, the company pointed out that fiat to crypto conversion is a global issue and a lot of cryptocurrency enthusiasts across the globe struggle to convert fiat to crypto and vice versa. They have to rely on local platforms that charge high fees and high spreads. WazirX wants to take its tried-and-tested P2P platform to solve this problem across the globe.

    India's trusted bitcoin exchange
    WazirX offers real-time open order books, charting, trade history, deposit, and withdrawals. So you can trade and invest in some of the world’s best performing digital assets.

    The user interface UI is friendly and easy to use.

    WazirX Exchange Offers:

    – Peer 2 Peer Transaction
    – Cryptocurrency Exchange
    – WRX Mining

    There are a large number of cryptocurrency exchanges based in India. In addition to this exchange, there are Koinex, EthexIndia, BITSSA, Unocoin, and ZebPay, to name a few.

    But most of them only offer to trade in BTC however. The only Indian cryptocurrency exchanges with more than a dozen different cryptocurrencies traded are WazirX, Koinex, and ZebPay.

    Different exchanges have different trading looks.  You have to determine which trading look that suits you the best.

    What their designs usually have in common is that they all show the order book or at least part of the order book, a price chart of the cryptocurrency and order history.

    What makes WazirX different?

    WazirX trading fees

    WazirX charges 0.25% if you’re a taker.

    It also takes the silver medal with respect to its maker fees, only BITSSA charges lower fees.

    The exchange charges 0.10% if you’re a maker. This means a 0.15% discount compared to the exchange’s taker fees.

    They are giving away free WRX coins

    WRX is a digital asset just like Bitcoin. We found on their official web site that there will be a maximum of 1 Billion WRX coins ever created. Over a period of time, creators expect the value, utility, and liquidity of WRX to increase substantially.

    By owning WRX coins through the WazirX signup and referral reward program, you become one of the early holders of the coin.

    Why they are doing this?

    WRX coin giveaway

    As we could see, they want to gain customers trust and involve you in helping them build WazirX.

    That’s why they want to reward new customers for joining in early.

    Also, they intend to build a strong user community.

    ”This also helps us stay true to the ethos of crypto and blockchain – to share the wealth instead of hoarding it,” they stated on the official web site.

    They planned to launch WRX. Instead of launching an ICO first, they plan to include community members as the first holders of WRX.

    If you join directly from a there website you will get 100 WRX.

    WazirX withdrawal fees

    WazirX charges a withdrawal fee amounting to 0.0005 BTC when you withdraw BTC. This fee is below the global industry average. We can say that is a rival advantage upon the majority of other top crypto exchanges in the market.

    Deposit methods

    WazirX allows wire transfer deposits but not credit card deposits. As far as we know, only one Indian cryptocurrency exchange allows credit card deposits at all (BITSSA).

    Security

    This is actually the only place where this particular cryptocurrency exchange takes the first place among Indian cryptocurrency exchanges. No other Indian cryptocurrency exchange has a higher security score.

    WazirX is the most secure exchange in India.

    On their web site, we found a detailed explanation about some important practices you should follow to keep your WazirX account secure.

    One point more for them.

    It is safe to trade, but it is a still new platform in the Indian market. So it will take time to build trust in Indian crypto trading community.

    And now, all over the world.

    The bottom line

    WazirX is a good platform. If everything goes right, this Indian exchange has the potential to become the best Indias exchange in future years. WazirX, the largest Indian crypto exchange is opened to traders all over the world now.

    Don’t waste your money!

    risk disclosure

  • Initiative Q – Is It a Scam

    Initiative Q – Is It a Scam

    3 min read

    Initiative Q - Is It a Scam 3

    Initiative Q invitations for the new currency have been circling since October last year. According to its own data, this cryptocurrency (?) wants to turn around international payments entirely. Makers of Initiative Q are not revealing how this is supposed to work.

    So, why we need a currency like Q?

    Does anyone know the answer?

    There is no direct registration.

    Moreover, there is no product!

    Did anyone see a demo of Q?

    Everything thus far is based on a vision, and even this is extremely problematic.

    What we have for now?

    Total garbage!

    An email database and list of friendship groups! C’mon!

    Initiative Q will sell 50,000,000 emails for $1,000,000 or more.

    Easy money for them, indeed! But for them, not for you!

    Initiative Q’s only announced great plan is to replace the central banking system with their own.

    So, why we would be interested in that? What’s the difference?

    Initiative Q offers a centralized, mysterious, barely known firm to be your prime banker. Innovative. Bravo, artists!

    Compare it with the independent, incorruptible and trust-based products such as Bitcoin.

    The Initiative Q homepage promotes in bold letters that signing up today is worth an estimated future value of over $17,500. Remember this bold statement.

    Initiative Q - Is It a Scam

    The first invites for Initiative Q went out to a select group of people six months ago. But in recent months, the invites have reached the masses. Their goal is that as many people join the network that the currency, known as Qs, will someday have financial value.

    Really?

    So, how do they do that? How do they, geather people?

    Over social networks! You don’t believe? Take a look!

    Initiative Q - Is It a Scam 1

    According to their plan, real progress is not set to start before the middle of 2019. The start of the payment network is planned for late 2021 or later. Yes, that’s right, guys! It’s ridiculous.

    What makes it laughable is that everyone apparently knows that this is a scam.

    Why?

    All you have to do is give them your email. And it isn’t a game.

    Do you remember what happened with the customers of Facebook and sale of their personal data to Cambridge Analytica?

    Or what happened when Google’s loophole, that made G-plus customers data public, was revealed?

    It asks for your personal information

    The legit airdrops don’t ask for your information, because they don’t care. They aren’t requiring security because it doesn’t matter who’s receiving the tokens. Therefore presenting personal information is unnecessary.

    Initiative Q, on the other hand, asks for your name and verified email address. We must ask WHY?

    That data is important. Advertising companies will cheerfully pay lots of money for access to good lists.

    The data required is something incredible.

    When you sign up you give your name and your verified email address.

    These emails could easily be used to get-rich-quick schemes. Or, as we can safely presume, for other scams.

    Yes, they say in their privacy policy that they don’t sell your data.

    Absolutely, so does Facebook. That didn’t stop Cambridge Analytica from using data to advertise during the 2016 US election.

    A privacy policy will never stop other company from using your data.

    For example, what will happen if owners of Initiative Q decide to sell their company to some other? That company will have every right to change the privacy policy. In front of your eyes.

    You have no guarantee that your data is private.

    So that raises the first red flag for us.

    Is this an MLM?

    One common accusation leveled at the Initiative Q is of being an MLM scheme. But while they do appear to have some multi-level characteristics, their denial of this accusation has merits. They currently do not appear as being and MLM as they lack the requirement for that second letter M. They are not “marketing”. At the moment they are still not marketing any product.

    They are not selling it, nor collecting investments. They do not offer any type of product on the market, because they still do not have one. This in its own right is an issue.

    So what they do?

    They are trying to participate in the market without doing what that participation actually is, offering a product.

    Obviously, none of this is going to work. Initiative Q will simply disappear if it attacks national currencies in any way.

    But, Initiative Q must be praised for its marketing department.

    As viral operations, it has been effective. You can see people you would expect to have zero interest in obstructing national money sharing the links.

    We can’t conclude yet whether this is a marketing joke or even a fraud. But it certainly already constitutes a prime example of a mass hack.

    Initiative Q is offering a Free Money 

    If a stranger asks you to give him your name, email address, and a password and he will give you free money, would you do it? You would be rather suspicious. Right?

    So why are people doing contrary on the internet?

    The main rule in the crypto world is: If it sounds too good to be true, it usually is.

    But, Initiative Q doesn’t even have a white paper about its technology will work. We think it is better to stay on the side of caution.

    Collecting personal data is the perfect way to build a mailing list for marketing projects. The list of a user interested in crypto means the database is full of users that can all be verified through social media.

    Who will stop Initiative Q to sell this database for a very nice sum of money?

    Be careful!

    Moreover, so many people use the same email and password combination on many sites, so that could be a dangerous game.

    To be more specific, Initiative Q is offering free money to you today, but tomorrow they could gain a lot of coins using your personal data without your permission.

    Initiative Q and Cryptocurrency

    Initiative Q  claims that it’s Qs is better than cryptocurrency.

    They claim that cryptocurrency is just “digital money that is hard to counterfeit.”

    Other lies that Initiative Q presents include that Bitcoin supports just two transactions per second. Truth is that Bitcoin averages seven transactions per second.

    They claim that cryptocurrencies have either no monetary policy.

    This is completely lying.

    Truth is that many cryptocurrencies have complex monetary systems. Their fiscal policies are set through programming.

    Without human mistakes.

    One lie more comes from the side of Initiative Q: Cryptocurrency users are expected to undertake complicated security procedures such as:
    – generating cryptographic keys using dice,
    – entering them into an unused laptop that is later destroyed,
    – storing the keys using special hardware from multiple manufacturers,
    – and keeping paper backups in bank safes.

    We just have to say this is an unnecessary stupidity and generalization.

    In one thing they have right.

    That one leads them to the status of keeper the environment.

    For mining cryptocurrency, it is the energy needed.

    The Initiative Q tries to distance their currency far from cryptocurrency.  So we cannot find where the value-add is over conventional currencies.

    This brings us to our final point.

    Initiative Q isn’t different from the traditional monetary systems.

    They have this on their site:

    Big IF!

    The bottom line

    Based on our research, we don’t believe Initiative Q is a scheme or serious project at all.

    Yes, you do get Qs when you sign up or invite friends.

    But Qs are currently worthless, it’s not really worth any money yet. Hence, there’s a lot of possibilities that Qs will be worth nothing in the future.

    Yes, it’s possible that Initiative Q is not a scam.

    Our problem with Initiative Q is that it shows how stupid they are.

    They are wasting time and energy.

    Instead of promoting this possible scam, they could be focused to do something really profitable for themselves.

    This isn’t the way to get rich.

    True money is produced by building businesses.

    And in the end, one day they will be caught.

    Don’t waste your money!

    risk disclosure

    Images Initiative Q source: screenshots from the official website
  • Boeing shares fall faster than their jets

    Boeing shares fall faster than their jets

    3 min read

    Boeing shares fall faster than their jets 1
    The Boeing shares marked significant down since the March 10 crash.

    One of its most profitable lines, the 737 Max 8 recorded the second crash of a 737 in less than five months.

    Boeing (NYSE:BA) Co shares dropped by more than 2,2% early on Monday. It happened after a pair of newspaper reports asked more questions about the certification process for its 737 MAX jets before two recent fatal crashes.

    A Wall Street Journal report on Sunday said that the U.S. Transportation Department was examining the Federal Aviation Administration’s (FAA) approval of the 737 MAX. In particular its anti-stall (MCAS) system.

    According to “Refinitiv” data,  Boeing shares have declined by about 10% since March 10. Accidents of its aircraft drained nearly $25 billion off its market capitalization.

    Investors started selling Boeing shares Monday morning after the deadly crash of Ethiopian Airlines flight.

    The stock dropped nearly 13% in trading since the crash.

    It is obvious that Boeing is in crisis.

    Boeing shares fall faster than their jets 2

    Is Boeing still a good investment?

    Boeing has been one of the champions of the 10-year-old bull market. Boeing shares were higher more than 1,000% compared with a 315 percent increase of the Standard & Poor’s 500-stock index.

    If you invested in Boeing 10 years ago, that arrangement has paid off.

    For example, your $1,000 investment in 2009 is worth more than $14,000 as of March 15, 2019. That is a total return of over 1,000 percent. In the same period, the S&P 500 was up 270 percent. Say, your $1,000 would be worth just over $3,700, by contrast.

    If you read our posts, you already know.

    Any individual stock can over-perform or under-perform. Also, past returns can not foretell future results.

    Boeing paused the delivery of 737 Max planes after the Ethiopian crash. It came less than five months after the previous deadly crash in Indonesia. Moreover, it was the same model.

    The several major airlines said they would give up ticket-change fees and fare differences for those affected by the FAA’s grounding order.

    Moreover, the flight-booking site Kayak also introduced a new search feature that allows users to exclude specific plane models.

    We feel safer now, indeed.

    The Boeing declared plans to roll out a software fix in the next several weeks.

    The Boeing will take about 3-6 months to confirm the fix

    However, Bank of America analyst Ronald Epstein said Thursday that the fix could take a longer: “Once Boeing identifies the issue … the most likely scenario is the company will take about 3-6 months to come up with and certify the fix,” he said in a note.

    The truth is, airlines are still planning on flying these planes.

    Boeing said in some comment it will “continue to build 737 Max airplanes while assessing how the situation, including potential capacity constraints, will impact our production system. ”

    Last Monday, Boeing said it would expand a software upgrade to the 737 MAX 8, hours after the FAA said it would mandate “design changes” in the aircraft by April.

    So, how to protect your investment?

    The expert investor as Warren Buffett suggests you start with index funds. Index funds hold every stock in an index, they have low turnover rates, fees, and tax bills. They also shift with the market to reduce the risk of picking individual stocks.

    Some people invest in individual stocks for excitement.

    It can be a game, with emotions as volatile as prices of underlying stocks.

    But are you sure you want to waste your time picking individual stocks?

    Okay, maybe you really want to spend the time necessary to follow the market. How we can know what kind of character you are?

    Maybe don’t mind the brokerage fees at all.

    Oops, yes!

    You have allocated the rest of your portfolio wisely to pad against possible losses.

    The wide majority of investors invest in equities through funds, not individual stocks.

    And you may be asking why.

    Individual stocks are not easy.

    Investing in individual stocks without the knowledge to perform fundamental analysis can cause you to jump in when at or near the zenith of the stock’s performance. If you found a stock in a list of “hot” stock tips, it is possible that its growth phase is at or near decline.

    You should be careful.

    Every time you make a decision to buy or sell, it will cost you commission fees. These fees can range from $4 to $30 or more.

    And you should decide whether to make a transaction or not.

    It is possible that you hold onto a stock far longer than you should in order to avoid the transaction costs. Right?

    But you’re still settled to invest in individual stocks for profit, not for fun.

    Then, try a stock screener.

    A stock screener neither selects winning stocks nor keeps you focused on long-term goals. It does not make any real predictions or absolute judgments. It merely links to a data source based on the statistics you select.

    If you really want a clever way to choose which stocks are performing well and which companies are currently robust and which ones are failing, stock screeners are a great place to start.

    Don’t waste your money!

    risk disclosure

  • Investors are focused on Brexit

    Investors are focused on Brexit

    2 min read

    Investors are focused on Brexit
    Investors are focused on Brexit. The House of Commons of the UK should again start voting for the Brexit agreement, presented by Prime Minister, Theresa May. During the first vote, the Parliament rejected the Prime Minister’s deal. If the revote again fails, the events may develop in two scenarios: the UK will leave the EU without an agreement, or the Brexit date will be rescheduled.

    But let see the risk of Brexit and the potential impact on the UK economy.  

    We also consider the likely reaction by markets for sterling, equities, and bonds.

    We just want to inform investors.

    The EU is the UK’s biggest trading partner.

    But, the UK is also a very important export address for the EU. Brexit may bring the UK the freedom to arrange trade agreements with third parties. But it may have to lose access to parts of the single market, and would almost surely be outside the customs union.

    Foreign direct investment is really important for financing the UK.

    The UK has a strong connection to Europe and vice versa. If Brexit causes the UK to lose access to the single market, it could cause capital inflows to reverse. The existing stock of assets and liabilities is very large. Say that, this has a huge impact on markets in a confusing plot.

    EU membership is frequently indicted the UK’s perceived migration problem

    Truth is that most immigrants come from non-EU countries. From an economic viewpoint, EU migrants arrive ready to work, pay taxes, and ease the difficulties of an aging population. Limiting migration in a Brexit scenario would almost certainly lower the UK’s trend growth, and increase the burden on the exchequer.

    The UK’s contribution to the EU’s budget is not a significant

    When the UK decides to leave the EU, finally, with just 0.2% ( December 2018) of gross national income, that saving wouldn’t solve a dent in the UK’s fiscal black hole. Moreover, if the UK chooses to follow the path of Norway or Switzerland, some costs may also be required.

    UK labor market will be less flexible

    Restrictions on EU migration may cause the UK labor market to become less flexible to demand. With raising the likelihood of more pronounced wage, inflation and interest rate cycles. A more cyclical economy would not only make recessions more frequent, but international investors could demand a discount on UK assets given the higher volatility of expected returns.

    A Brexit scenario is likely to cause sterling to fall further.

    We are all witnesses to that.

    Having already seen its first-class depreciation since the financial crisis in recent months, we can say that a further fall is likely under Brexit. But, the sterling could rebound should the UK vote to remain, as many investors have already started to hedge their sterling exposure.

    The outlook for UK equities is mixed under Brexit.

    The UK’s large-cap index has a large proportion of its revenues coming from outside both the UK and EU. If sterling depreciates, these companies may see the sterling value of profits rise. So, they would therefore benefit.

    The mid and small-cap indices have more exposure to the UK and EU and could underperform as a result.

    The outlook for bonds is mixed under Brexit.

    Credits could have wider spreads. The investors demand a higher premium against the risk of lower growth and higher default risk. Meanwhile, gilts (Gilt-edged securities are bonds issued by the UK Government)are likely to see higher domestic demand from safe-haven flows.

    The latest news: Ryanair UK investors to lose rights in no-deal Brexit

    According to the Guardian, British citizens who own shares in Ryanair will be barred from buying more stock, voting on company resolutions or attending annual shareholder meetings if a no-deal Brexit goes ahead, the Dublin-based carrier said on Monday.

    EU regulations require that airlines flying under a European license must be majority-owned and controlled by shareholders from the trading block.

    Ryanair said that to comply with these regulations it would have to restrict the rights of British shareholders, who control about 20% of the company’s stock, to bring them into line with other non-EU investors.

    In a statement to the stock market, Ryanair said: “These resolutions will remain in place until the board determines that the ownership and control of the company is no longer such that there is any risk to the airline licenses held by the company’s subsidiaries.”

    Ryanair has previously published a guide to the ramifications of a hard Brexit for its UK shareholders, explaining its rationale for the decision and claiming it has no alternative.

    Don’t waste your time.

    risk disclosure

  • BMW and Toyota could leave UK after no-deal Brexit

    BMW and Toyota could leave UK after no-deal Brexit

    1 min read

    BMW and Toyota could leave UK after no-deal Brexit

    Car producers Toyota and BMW have both warned that no-deal Brexit could affect on the production of their cars in the UK.

    BMW told Sky News it could consider moving production of its Mini from the UK in a no-deal scenario.

    Previously,  the head of Toyota’s European operations said a negative result could put future investment at its UK factory at risk.

    Company bosses lose trust in the UK economy because of Brexit uncertainty.

    Toyota’s factory near Derby is at risk, said Johan van Zyl to the BBC, and added, if the Brexit “hurdles” are too high it would undermine Toyota’s competitiveness.

    BMW has said it might stop making the Mini at its Cowley plant in the event of a no-deal Brexit. That would put more than 4,500 jobs and more than 100 years of car-making at the site at risk.

    The German BMW joined Toyota and Vauxhall owner PSA in an attitude that an uncontrolled exit from the EU would cost British workers their jobs. And, the Geneva Motor Show (Thu, Mar 7, 2019 – Sun, Mar 17, 2019) is coming with the UK automotive sector under murky water.

    No bridge over troubled water

    BMW board member Peter Schwarzenbauer told Sky News that the future of the Mini brand in the UK was under threat in the deficiency of a Brexit deal.

    By the way, he is responsible for the Mini and Rolls-Royce brands.

    Also, he added, if a “worst case” no-deal scenario happened, “we would need to consider what it exactly means for us in the long run”.

    “For Mini, this is really a danger,” he said.

    Schwarzenbauer said the firm would “need to consider” moving production from the UK as the company could not absorb the extra costs they would inevitably face.

    He also told the Reuters news agency at the Geneva car show that engine manufacturing, at Hams Hall in Birmingham, could be lost to Austria.

    Previously, BMW chief executive Harold Krueger told the BBC that the carmaker was preparing “for a lot of scenarios” and was “very flexible” in its approach to production.

    In the group with BMW is Toyota too

    One of Toyota’s executives has warned a no-deal Brexit would make it “extremely complicated” to build new models at its British plants.

    The signal by Japan’s biggest carmaker that no deal would make it less likely it would manufacture additional models in the UK follows Nissan’s recent reversal of a 2016 decision to build a sports utility vehicle in Sunderland and Honda’s planned Swindon closure.

    It also comes against a backdrop of steep falls in investment in the UK car industry.

    “If we don’t have access to the European market without a specific border tax, it seems to be extremely complicated to think about . . . introduction of another model,” Didier Leroy, chairman of Toyota’s European operations, said to the Financial Times.

    Toyota has two factories in the UK, employing about 3,000 workers at its vehicle manufacturing plant in Burnaston and its engine production facility in Deeside in North Wales.

    Where is the risk for the auto industry if scenario no-deal Brexit come true?

    One risk of a no-deal Brexit is that British-made engines will no longer be counted as EU content.

    These car giants could move some production of engines out of Britain if the country does not secure an orderly departure from the European Union.

    Britain, the world’s fifth-largest economy, is due to leave the EU on March 29 but an agreement between London and Brussels has been rejected by UK lawmakers leaving open the possibility of a chaotic exit that could hit trade.

    What is the possible scenario?

    March 12, 2019: UK lawmakers will vote on new deal terms of the UK’s departure from the EU.

    March 13, 2019: In case the deal is rejected, lawmakers will vote on whether to leave the EU with no-deal.

    March 14, 2019: If lawmakers reject a no-deal Brexit, they will probably seek a delay to the U.K’s separation from the EU.

    March 15, 2019: Two-day summit will start. EU leaders will meet to analyze the state of the Brexit process.

    March 21, 2019: The UK is listed to leave the EU.

    The bottom line

    The fact is, this is the battle of nerves. In light of the possibility that BMW and Toyota, along with other investors who proclaimed that will leave the UK, the economy of Great Britain could drop hard. The state of suspense will not stay so long. The date of decision is so close.

    Don’t waste your money!

    risk disclosure

  • Euro – Is it Going to Die?

    Euro – Is it Going to Die?

    4 min read

    Euro - Is it Going to Die?
    From 27 January 2019, 17 of the 19 national central banks in the euro area is no longer issue €500 banknotes. In order to ensure a smooth transition and for logistical reasons, the Deutsche Bundesbank and the Oesterreichische Nationalbank will continue issuing the notes until 26 April 2019.

    Existing €500 banknotes will continue to be legal tender, so you can still use them as a means of payment and store of value (i.e. spend and save them). Similarly, banks, bureaux de change and other commercial parties can keep recirculating the existing €500 notes.

    Like all denominations of euro banknotes, the €500 note will always retain its value and can be exchanged at a national central bank of the euro area at any time.

    To be charitable, you could say the euro has proved itself merely by surviving until its 20th birthday this January.
    That is a low bar.

    Some politicians and economists would say that the European monetary union has failed as an economic and political endeavor.

    The evidence of Europe’s ‘Lost Decade’ is that it can only ever be made to work under a regime of technocrats.
    That is to say, nation-state elected parliaments, was cleared out of their control over taxation, spending, and the core economic policies.

    “One day, the house of cards will collapse,” says Professor Otmar Issing, the founding chief economist of the European Central Bank.

    The EMU adventure has led to the “most serious economic crisis in the history of the European Union, said the others. It has done “more lasting damage” to Europe than the Great Depression of the 1930s and put eurozone states against each other. All of them are fighting for control over the policy.

    With 2019 beginning, the leading EU economists analyze the bloc’s single currency the EU. Which they argue has caused more harm than good.

    The political dynamics have become poisonous. Years of rolling crisis “entrenched and amplified the power and influence of creditor countries such as Germany”, working through the ECB and the European Council.

    EU bodies enforcers of a German-imposed strategy of debt deflation and fiscal contraction. The responsibility of adjustment fell on the weaker states. That was leading to a bias for the whole system.

    Yet nothing is actually changing.

    There is no attempting to probe the disaster

    Those in power of the EU still think they were right. Everything is about ideology.

    One of the aspects of the present situation is disappointment with the “European Dream”. The belief that policies preferring concepts like community relationships, sustainable development, and international cooperation would give Europeans an advantageous lifestyle and influence in the world, collapsed. Europe, particularly as the idea of the European Union, is no longer the object of dreams. It becomes a cause of concern and even fear. And the euro carries part of the guilt for this shift of perspective.

    Euro - Is it Going to Die? 1
    The common currency was put into place in 2002, by 19 of the 28 EU member states. But the growth in eurozone countries has been inferior compared with countries that did not join the monetary union.  Notably, the United Kingdom, Norway, and Sweden showed more progress. This aspect is important to understand the public disappointment with the EU. People couldn’t see the realization of the promise declared at the time of the euro’s launch.

    Today, most Europeans are assured that the common currency has negative impacts on their economy.

    Most of the countries have low growth but rising unemployment

    So it looks that the eurozone is in the middle of the crisis. The basic problems first posed isn’t resolved.

    For example, the unitary currency system locks the relative exchange rates between countries.

    For a stable economy, it is necessary to have the possibility to adjust exchange rates. Moreover, there is no such thing as a true European budget. Without exchange rate adjustments or budget transfers, it is left to the labor market. Therefore salaries have a negative effect on the hunt for budget balance.

    What is clear is that the status quo cannot persist indefinitely if the Euro is to survive in the long term.

    The Brexit devastated EU economic capability

    Truth is, youth jobless rates reached 57% in Greece, 56% in Spain, and much the same across Italy.  These levels are illogical in a modern developed democracy.

    Hundred thousand economic refugees came to work in Britain. From Eastern Europe came to the UK instead of going to the eurozone as they did before. The wave had a great impact before the Referendum UK.

    EU budget talks for 2019 collapsed

    The last year’s negotiations between the Council of the EU and the European Parliament for the 2019 budget failed to reach a compromise by the legal deadline. Later in December, they made the deal.

    But Europe’s economy is weakening. It would not have said the recession was imminent but the article by economist Victor Hill connects some events in directions many haven’t considered.

    Hill begins the article this way.

    ”Across Europe, and particularly in the 18-member Eurozone, the economic news is sobering. It’s now clear that the credit crunch in emerging markets which has played out over most of this year, plus the slowdown in China, are having negative consequences in Europe. Yet, despite the ongoing trauma of Brexit, the UK is cruising along relatively smoothly—for now.”

    The first such event is the coming end of the European Central Bank’s quantitative easing “Asset Purchasing Programme.”

    The ECB has been buying bonds, stocks, and anything else that isn’t nailed down wholesale.

    Asset prices have gone up

    Mario Draghi and his team borrowed the US Federal Reserve’s plan and made it more insane. Since 2017, they have been stepping down purchases. The step should reach zero in early this year.

    The EU needs a growing core to stimulate growth for the whole continent.

    Where the EU has made practically zero progress is crisis prevention. In some areas, they are even growing back.

    The politics have gotten worse. The price to pay for those bailouts, reform packages, rescue funds, and European Central Bank bond-buying schemes has been political fragmentation, at first. But by now, this becomes outright polarization. And this is happening in both “core” and “periphery countries”.

    The eurozone still relies on the European Central Bank to hold everything together. And instead of a treasury, they have a politically unstable consensus on the need for the ECB to act as a lender of last resort for governments.

    Policymakers need to support the ECB. But the eurozone will not be able to avoid a discussion on better fiscal alternatives forever.

    The eurozone is still dangerously imbalanced

    The size of the northern countries’ account surplus is an obvious symptom of the basic differences. It will need to rebalance to solve the problem.

    And moreover, there is the weak governance of some parts of Southern Europe. This will be very difficult to support politically.

    The current state of the global economy is like to be the crash. There are unsolved problems everywhere. There’s the Brexit issue, Italy’s populists, the US-China trade conflict and a lot more. The bad news everywhere.

    Euro - Is it Going to Die? 2
    The defenders of the euro at the European Central Bank (ECB) sit in Mario Draghi’s trap of a zero-interest policy. The bank president’s inaction could prepare the territory for the next big crisis.

    The world’s largest asset management firm, BlackRock, is warning its clients against investing in European stocks. They are saying the risks of doing so are too high and that the bullish period is most likely over on the Continent. There’s the concern, seeing investors increasingly putting resources into US sovereign bonds in pursuit of safe yield.

    And it’s a warning signal when yields on longer-term bonds are lower than those on bonds with a shorter maturity.

    Such an inverse yield curve could be an indication of a downturn

    Today’s debt is higher than before the global financial crisis, amounting to 225% of global GDP (according to the IMF) or 245% (according to the Bank for International Settlements). The eurozone stipulates its members must not let their debt exceed 60% of GDP. But, global debt is rising faster than growth.

    The bottom line

    What does this mean?

    This means that the economic growth we’ve seen in the past years has been achieved on credit.

    When the bubble explodes all will have to tighten their belts. Some nations will no longer be able to take the multibillion-dollar rescue packages. And the ECB’s Mario Draghi cannot lower the lender’s interest rates to lever up the economy.

    The ineluctable conclusion is that a monetary union of budgetary sovereign states cannot be made to work.

    The euro is essentially unsustainable. And, therefore, it is going to die.

    risk disclosure

  • Euro to Decrease in Days Ahead – Forecast

    Euro to Decrease in Days Ahead – Forecast

    2 min read

    Euro to Decrease in Days Ahead - Forecast
    The downward trend, resistance, and price action combine indicate EUR/USD will be lower in the week ahead. If we are right, first up will be the new low at 1.1234. The last low was in November at 1.1216.

    If we see how the rate things have been going recently, it could be a extend. We see an extended slide too far beyond either of those levels without another bounce.

    Euro to Decrease in Days Ahead - Forecast 3

    EUR/USD

    In the week ahead EUR to USD :

    Forecast euro on Monday, March, 4: exchange rate 1.1346 Dollars, maximum 1.1516, minimum 1.1176.

    EUR/USD forecast on Tuesday, March, 5: exchange rate 1.1383 Dollars, maximum 1.1554, minimum 1.1212.

    EUR to USD forecast on Wednesday, March, 6: exchange rate 1.1309 Dollars, maximum 1.1479, minimum 1.1139.

    EUR/USD forecast on Thursday, March, 7: exchange rate 1.1365 Dollars, maximum 1.1535, minimum 1.1195.

    EUR to USD forecast on Friday, March, 8: exchange rate 1.1324 Dollars, maximum 1.1494, minimum 1.1154.

    The Euro rallied a bit during the last week, breaking above the top of the hammer from the previous week. This is a very positive sign as the hammer set itself up right at the 1.1250 level, an area that has been very important, and it reliably supportive over the last several months. Beyond that, it was an area that was previous resistance that seems to be holding as well.

    Euro to Decrease in Days Ahead - Forecast 4

    EUR/USD

    When you look at the longer-term chart, we are also trading just above the 61.8% Fibonacci retracement level, and therefore there are plenty of reasons to think that the pair is going to rally. However, the 1.15 level above has been very resistive so this will simply be a continuation of the overall consolidation area. Honestly, this is a bit of a basing pattern but it’s going to take some time to play itself out. With the Federal Reserve looking to be very dovish, it makes sense that the greenback would lose some strength.

    The European Union releasing shocking economic numbers, giving the US dollar a bit of a break.

    If there will be breaking down below the 1.1250 level, then it will continue to drive. That’s a very supportive level though, it is very unlikely to happen. This is going to be more of a struggle than anything else.

    Euro and the US dollar are the most traded currency pair

    The most traded currency pairs in the world are called “the Majors” and the EUR/USD leads this group as the most traded pair in the world. This pair represents the world two largest economies and has faced the most volatility since the inception of the euro in 1999.

    The common European currency was introduced in 1999. Euro currency in cash entered into circulation 3 years later – in 2002. Before that, the non-cash Euro and German marks, French francs, and other European currencies in cash were in circulation simultaneously.

    The bottom line

    When introducing the Euro in January 1999, the European Central Bank fixed its exchange rate against the US Dollar as 1.1743 dollars for 1 Euro. Such relation to Dollar was formed by the Euro predecessor – European currency ECU. The name Euro seemed more harmonious to Europeans than ECU.

    The exchange rate of the Euro against Dollar mainly depends on the rate of return (interest rates) in these currencies.

    risk disclosure

  • Bitcoin rise comes from fiat

    Bitcoin rise comes from fiat

    1 min read

    Twitter CEO Jack Dorsey thinks Bitcoin will be the Currency of the Internet
    Bitcoin, Ethereum, Litecoin, and EOS have all experienced an unexpected rally in the last seven days.

    Bitcoin is up 9.84%, Ethereum is up 21.24%, Litecoin is up 23.13%, and EOS is up 35.72%

    This shows that the rally has strength. It looks that fresh money is flowing into the entire area.

    “Interestingly, it appears that the momentum behind the recent Bitcoin rise comes more from fiat and stable coins than from other cryptocurrencies,” says Michael Noel, CEO Blockchain Consultants. “This move from Fiat currencies shows at least some consensus that BTC value, is better long term than in traditional currencies.”

    BTC/USD

    Bitcoin rise comes from fiat

    BTC/EUR

    Bitcoin rise comes from fiat 1

    BTC price – 2/22/2019

    The last bull flag had a golden cross and this is the main reason why Bitcoin plummeted.

    It seems the Bitcoin rise comes from fiat

    This new support of over $3,900 looks strong. More money is coming into the market and people want gains like it was in 2017. Fear of missing out is another factor why people will buy BTC. Many claims there is still a bear market but they can’t confirm when will it hit a bottom. It looks that BTC will be fluctuating between $3700 – $6,000 for a long period.

    Bitcoin price plunge to $3,700 expected, the traders say. A retreat is a blessing for crypto.

    Following a rapid surge in the Bitcoin price from $3,614 to $4,000 within a span of three days, traders are expecting BTC to retrace by around 7 percent to $3,700.

    The projection on the price trend of the ruling crypto asset comes after the failure of Bitcoin to climb beyond the crucial $4,000 resistance level.

    On February 19, it achieved $4,000 across major crypto exchanges including Bitstamp and Binance. But soon, it fell to the low $3,900 region and today, below the $3,900 level.

    The price trend of Bitcoin in the past four days is similar to its trend from February 8 to February 12.

    In early February, in a frame of four days, the price of BTC surged from $3,337 to $3,711 and pulled back to the $3,500 region.

    In the upcoming days, traders foresee Bitcoin demonstrating a similar movement as before.

    The bottom line

    The near-term minor correction of Bitcoin could positively affect the trend of the crypto market in the next weeks. We can see more stability and a strong spot to begin short-term rallies.

    BTC showed an expansive period of stability and initiated a strong rally to $4,000.

    If the asset regains momentum in the upcoming days and potentially establishes a strong floor to cleanly break out of the critical $4,000 resistance level, it may benefit the market.

    CCN reported that economist Alex Krüger stated that although $3,700 remains as a strong support level, breaking out of the

    $4,200 resistance level could trigger a rapid upside movement.

    The explanation for the short-term prosperity of the crypto market is for Bitcoin to break out of major resistance levels with strength.

    The daily volume of the market has largely recovered. And the interested in the asset class has significantly increased. So, we will see. Bitcoin looks stronger than some expects.

    risk disclosure

  • Tilray Make More Cheerful The Manitoba Harvest

    Tilray Make More Cheerful The Manitoba Harvest

    1 min read

    Tilray Make More Cheerful The Manitoba Harvest 1

    Tilray makes the richest deal in an effort to jump into U.S. CBD market. Tilray buys hemp-food maker Manitoba Harvest for $419M.

    Tilray is acquiring the parent company of hemp-food maker Manitoba Harvest for up to $419 million in a cash-and-stock agreement. Cannabis producer from the Nanaimo quickens its entry into the North American CBD market. This deal will give Tilray ownership of a high-profile brand and one of the biggest hemp-food makers in the world. It also gives Tilray access to Manitoba Harvest’s retail network of 16,000 stores across the U.S. and Canada that includes Costco, Amazon, and Wal-Mart.

    Investors like this Tilray’s arrangement, with shares of the marijuana producer jumping close to 5% in intraday trading. But Tilray’s acquisition of Manitoba Harvest should encourage more than a temporary gain.

    Tilray Make More Cheerful The Manitoba Harvest
    With its new deal, Tilray appears to beat its biggest rivals, Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC). It looks Tilray manage to stake its claim in a potentially huge market.

    Tilray Overtakes Aurora Cannabis and Canopy Growth in the U.S. Hemp Market

    The biggest Canadian marijuana producers, all three, weren’t modest about showing their tends to enter the United States’ market. The problem is, marijuana is illegal at the federal level. So, they can’t operate in the U.S. and hold their listings on major stock exchanges in such a situation.

    Hemp is a different story. By definition, hemp is cannabis that contains low levels of the psychoactive ingredient THC. The U.S. legalized hemp in December 2018. That opened the way for the major Canadian marijuana producers to jump into the U.S. hemp market.

    Tilray Make More Cheerful The Manitoba Harvest 2
    Canopy Growth was the first. The company published in January that it had ensured a license to produce and prepare hemp in New York state. Canopy also plans to spend between $100 million and $150 million to build a large-scale hemp production facility in New York.

    Meantime, Aurora Cannabis has been much more careful. CEO Terry Booth said that Aurora would “enter when it’s proper to enter, and when it’s legal to enter into the United States market.”

    Tilray’s smart move

    But Tilray’s acquisition of Manitoba Harvest sets it winning of both of the bigger rivals.

    Tilray’s acquisition of Manitoba Harvest seems to be a smart activity. The deal gives Tilray an immediate position in the North American hemp CBD market.  Tilray is financing the acquisition through both cash and stock. More than 1/5 of the buying price isn’t expected until six months after the transaction closes.

    This acquisition is just the latest exemplar of Tilray’s business courage. The company’s acquisition of Natura Naturals last month boosted its production capacity. That deal was part in cash and part in stock with much of the purchase price associated with reaching predefined quarterly production milestones over a 12-month period.

    Tilray showed an intention to win the total cannabis market. Its entrance into the potentially lucrative U.S. hemp market is the sign of that. The company’s chances of taking a leading role appear to be greater than ever.

    risk disclosure