(March 30/ 2017)
Brexit The Deal Breaker
The United Kingdom formally began the process of leaving the European Union (EU) on Wednesday. On the same day, investors witnessed the first high-profile corporate casualty of the political split. Nine months ago, British voters chose to leave the EU, although the British government waited until Wednesday to officially declare that it would be withdrawing from the EU. The UK and the EU now have two years to negotiate their post-Brexit relationship. Markets were relatively nonplussed by the news, probably because the timing for the formal withdrawal was laid out months ago, i.e. it was not a surprise.
What Does This Mean?
For markets: Trump and Le Pen are overshadowing Brexit’s impact on the pound. A currency’s value is, of course, measured against other currencies. Recently, the US dollar has declined against other major currencies, including the pound, as investors have become less optimistic about the boost that President Trump’s policies will give the US economy (remember, a currency’s value will usually go up if its economy is likely to improve, as investors move money there to “chase” growth). Also, political risk around the upcoming French election is likely putting some downward pressure on the euro. Both of those factors are effectively supporting the value of the pound.
The bigger picture: Brexit is already threatening UK-EU business ventures.
Prior to the Brexit vote, Europe’s largest stock exchange, Deutsche Börse, agreed to merge with the London Stock Exchange (LSE). On Wednesday, the EU formally blocked the deal. While it wasn’t explicitly due to Brexit, it’s widely believed that the EU did not want its main exchange to be based outside of the EU. Without the scale that such a merger would provide, Deutsche Börse and the LSE risk falling behind other exchanges. It’s a very real example of the disruptions that Brexit may cause for certain businesses (especially big, cross-border ones). See also.
Samsung Phones For Help
South Korean tech giant Samsung unveiled its newest flagship smartphone on Wednesday, the Galaxy S8 – but the jury’s out on whether Samsung can use the phone to move past its most recent scandals. The S8 will ship in April and comes equipped with encrypted facial recognition software (which could help users with secure transactions) and its own AI assistant named Bixby (essentially, a Samsung version of Apple’s Siri). But those features may not suffice to entice enough consumers back to Samsung and allow the company to regain the top spot in smartphone sales back from Apple.
What Does This Mean?
The bigger picture: Smartphone makers want to dominate the Internet of Things.
Everything from our cars to our kitchens can be connected to the internet these days. Samsung has clued into this idea and has designed the S8’s Bixby to be used by third-party developers in order to connect its smartphones to a whole range of devices. Samsung isn’t alone: Amazon has focused heavily on device connectivity inside the home and Apple also launched a Home app for iOS devices last year.
For the stock: The S8 seems unlikely to be a savior for Samsung.
Samsung is hoping to turn a corner with the S8 in 2017 – the company took a $5 billion hit to profits last year when its Note 7 phone was recalled for spontaneously bursting into flames. Also, its boss has recently been charged with corruption in Korea. But the S8 may not be a powerful enough cure-all. For one, Samsung doesn’t have its own operating system, which could make it harder to build the best products that integrate with the Internet of Things. Also, Samsung, historically a cheaper alternative to Apple, is facing stiff competition from Chinese firms like Huawei and Oppo.
A Glimpse Into the Future
Elon Musk Connecting the Brain to Computers
You may have thought smart watches and other wearable computing devices were cool. Here is some food for thought. Elon Musk the developer of Electric Cars, Rocket Ship Travel and Battery Powered Homes is now developing an interface for the brain and the computer. Remember those things you are always forgetting? You can just tap your brain now and instantly remember and find the article you were reading or the directions that you forgot. The fictional character Iron Man who created Stark Enterprises is becoming more real every day. In fact Iron Man was a big inspiration to Elon Musk. I would highly recommend to follow this adventurer and invest in his enterprises. More.
People Who Make a Fortune From Giving
Lucas De Vries -Starting His Fortune from Giving Tips
Not too long ago Lucas De Vries read an article here about a NYC taxi driver who makes a fortune driving clients to the airport and giving them stock market tips. All of the clients that took the tips and then registered for a free account at GSI ended up building up a huge business for him. Lucas started to think about his own situation. He trades a bit and also works in a popular cafe in the Netherlands where he is always making conversation with the clients. He thought to himself 'Why don't I try this?' He wrote to me first and asked me how it would work. I told him its very easy. 'But what do I say to the clients?' he asked. I sent him a sample to help him.
Lucas: You see this? (shows him the GSI app)
Client : What's that?
Lucas: It's my trading account. I started with $1000 and made around $300 last week.
Client : Wow that's cool. Where did you learn trading?
Lucas: The company gives free lessons with real Experts in the Market. Its great I learned a lot. If you like I will send you the link. I am part of a VIP list. I get stock tips sent to my phone every week so if there is a big opportunity in the market I can catch it right away and make money before its even written in the paper.
Client : Sure, hook me up.
It's that simple. Lucas who has sent in only 20 referrals so far has now 300% more in his account ($1000 of his own capital and $3000 added from clients). His new business is only a few months old and Lucas is loving it. 'I can't believe how easy this is', he said to me recently. I answered, 'Wait till these 20, or 30 or 40 start their own business as well. You will benefit from all of this trading. GSI is a very innovative company that believes that the more you share equity with your clients and partners the more everyone wins.' Good luck to Lucas and any other clients that wish to start their own branch. Find out more.
If you have any questions feel free to contact me here.