World stocks rebounded after positive signals from US-China negotiations

European-American stocks rebounded on Oct. 9 after speculation that China was willing to come to a partial agreement with the US at trade talks taking place this week.

On Wall Street, Dow Jones industrial index increased by 0.7% to 26,346.01 points. The S&P 500 also increased by 0.9% to 2,919.40 points, while the Nasdaq Composite technology index advanced by 1% and closed at 7,903.74 points.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 9, 2018. REUTERS/Andrew Kelly

On the other side of the Atlantic, European stock markets are also racing.

Specifically, the FTSE 100 index in London (United Kingdom) increased by 0.3% to 7,166.5 points, the CAC 40 index in Paris (France) recorded an additional 0.8% and reached 5,499.14 points. The DAX 30 index on the Frankfurt floor (Germany) advanced 1% to 12,094.26 points.

The EUR STOXX 50 composite index also inched 0.9% and closed at 3,459.14 points.

In the previous 9/10 session, markets dropped sharply after the new US sanctions on 28 Chinese entities led to a backlash from Beijing.

This move has made the situation more tense before the high-level trade talks between the two countries began on October 10 in Washington.

However, markets on both sides of the Atlantic bounced back after reports emerged that a smaller scale deal was still within reach, as Beijing agreed to buy more American agricultural products. In exchange for Washington’s delay in implementing new tariff measures.

This information helped relieve some of investors’ insecurity when it was less than a week before the next US sanctions tax will take effect on October 15.

LBBW expert Karl Haeling said the hope rekindled even though everything seemed to be deadlocked before.

However, senior market analyst Craig Erlam at investment brokerage firm Oanda noted that the market has repeatedly misjudged the signals surrounding previous trade talks.

He said that investors were quick to respond very positively to the more optimistic outlook of the negotiations at this time. But there has been a lot of “jamming signal” surrounding previous talks and this may be just the same.

Venezuela tested keeping cryptocurrencies in the bank

Venezuela’s central bank conducts many tests to see if it can keep cryptocurrencies in the treasury, while Venezuela’s largest oil company wants to pay suppliers with bitcoin and ethereum.

According to Bloomberg, a source said it was an effort at the request of Petroleos de Venezuela (PDVSA), a state-owned oil and natural gas company. PDVSA is seeking to send bitcoin and ethereum to the central bank and wants the monetary authority to pay its suppliers in cryptocurrency.

In addition, Venezuelan central bank members also studied the proposal to allow cryptocurrencies to be included in international reserves. The international reserves of the South American nation are near the lowest level in three decades, at US $ 7.9 billion.

The sanctions imposed by the US on the regime of Venezuelan President Nicolas Maduro largely isolated Venezuela from the international financial system, exacerbating one of the world’s most severe economic crises, forcing gender. The organization must use skillful methods to transfer money.

Continued use of cryptocurrencies after a failed private cryptocurrency launch shows how desperate Venezuela is in finding a way to circumvent sanctions.

It’s unclear why PDVSA owns bitcoin and ethereum, and it’s unclear how much cryptocurrency the company holds. Oil producers have struggled to get customers to pay through regular channels because many large banks are reluctant to do business with a punitive entity.

Last month, the company received most of the $ 700 million payment in yuan after parties had difficulty finding financial institutions to facilitate transactions.

PDVSA may be hesitant to sell the cryptocurrencies they currently have on the open market as this requires businesses to register with an exchange and be tested. Therefore, it wants the central bank, where officials are less likely to be exposed to potential bans, to use cryptocurrencies to pay debt to the parties it owes.

Bitcoin and ethereum use decentralized, online ledgers called blockchains to verify and record transactions. In some cases, this practice allows for relatively anonymous transfers without intermediaries. Very few banks involve cryptocurrencies because of money laundering regulations and many other legal compliance issues.

As of early morning 27.9, the price of bitcoin was 7,960 USD while ethereum reached 160.5 USD, according to Coinmarketcap.

For Venezuela, in order to protect itself from sanctions, the government considers switching to Russia’s international payment messaging system, created to replace the Inter-bank Telecommunications Association and the national finance. (SWIFT) that most financial institutions are using.

Football festival, global stock market will fall points?

Trading volume fell sharply

During the 2010 World Cup held in South Africa, many matches were played at the same time as the trading hours of many stock markets around the world. According to ECB statistics, there are 15 large stock markets including: Germany, England, France, Italy, Spain, Denmark, Netherlands, America, South Africa, Argentina, etc., there are 3 points worth Note the following:

(1) In the market of some countries, for every game with a national team (such as England, France) participating, the average number of orders reduced by 45%, the volume of trading shares decreased by 55%. .

(2) The market is affected by the matches. Specifically, after a match, each country’s stock index fell an average of 5%. This reduction was statistically significant at lunchtime after the morning session, and many investors did not pay attention.

(3) The global stock market’s temperature is contrary to the World Cup matches, in more than 20% of the time the games are played, global stocks fall. Investors seem to be willing to spend more money on alcohol and popcorn than focus on price lists during this time.

Another 2007 study also showed that during the World Cup, a defeat of the national team could make that national stock market drop sharply the next day.

Slight increases in the stock market of the winning country

After the World Cup, markets with national teams that have won the championship have always gained points since 1974. The only external case for Brazil in 2002, the rest of those markets rose immediately after that to the average. 3.5% and maintained for 3 months.

The stock market of the losing country lost points

In the Goldman Sachs report, 7 out of 9 stock markets of the losers in the final also suffered a “sharp decline” with an average decrease of 5.6% in the following three months.

Another study, entitled ‘Love for Sport and Profit from Securities’, lists statistics from 1100 matches and stock market yields of 39 countries, showing that each team has a In the qualifying round, the country’s stock market fell 0.5% the next day.

There are no serious consequences for the value of stocks or the country’s economy, but simply the mood of investors affected. That’s why the World Cup defeats have more serious consequences than the European Championship or other sports such as baseball, basketball, cricket, rugby … Especially, the most serious impact in “crazy football” countries like Argentina, Brazil, England, France, Germany, Italy and Spain.

The US market is always down after every World Cup

A study by Israeli experts said the average post-World Cup US stock market plunged 2.6%, calculated over 14 of the last 15 World Cups. This may seem unusual, because Americans prefer rugby football. However, one-third of transactions on the US stock market are carried out by foreign investors. So after every World Cup round, with the number of national teams going up, there are some foreign investors sad.

Movements of stocks are very different on stock exchanges

Statistics on STMicroelectronics (STM) shares traded on Italian and French stock exchanges showed different up / down trends of this stock on both exchanges when impacted by football matches.

Normally, a firm’s stock will have the same direction of increase / decrease on international exchanges. However, in the 2-1 World Cup victory against South Africa, STM shares fell sharply every time South Africa scored but did not happen in the Italian market. Similarly, after Italy lost to Slovakia, STM slumped on the Milan stock exchange, but not in Paris.

Facebook’s “seismic” virtual currency

Facebook, on June 18, said it would release the Libra virtual currency, scheduled for official trading from early 2020. Described as a global financial-monetary infrastructure, Libra was affirmed by Facebook’s leader “not created for the purpose of replacing major central banks”. However, this currency is evaluated by analysts to create a global seismic in the financial industry.

With more than 2.4 billion Facebook users every month, Libra has the ability to change the face of the financial market, according to The Guardian. Bloomberg in the recent article said that if successful, Libra could turn Facebook into a ‘big player’ in the financial industry.

Compared to the rest of the money market built on blockchain technology, Libra has two distinct characteristics: how to manage and operate.

Unlike other virtual currencies that are also based on the Blockchain, Libra is not created by “digging”, but this currency is issued based on a real amount of collateral. Simply put, this digital currency is created in the same way that central banks around the world issue paper money.

In the newly published White Paper, Facebook claims Libra is a “stable currency”, due to its value attached to real assets. Basically, the only way to increase the number of circulating Libra is that users use other currencies, such as US dollars, euros, yuan or yen to buy Libra and this amount is considered “assets.” guarantee “the amount of Libra this person owns.

“Facebook introduced Libra at the moment as a turning point for the company’s operations and the money market,” said Mark Mahaney, an analyst at RBC Capital Markets. “In terms of size and importance, we believe this new financial platform may be similar to the time Apple introduced the IOS operating system for developers more than a decade ago.”

The amount of Libra collateral will be placed in banks or invested in low-risk lucrative assets, such as US government bonds, but the profits are not distributed to Libra owners. used for the operation of this currency management organization, such as funding for research activities or social activities.

This pre-system is also managed by an organization called Libra Association – an independent, non-profit organization based in Geneva, Switzerland. The organization has two main functions: authenticating transactions using Blockchain Libra and managing Libra volumes related to social purposes.

Companies that contribute at least $ 10 million are considered to be founding members of Libra Association, and there are now 27 technology companies that claim to be partners with Facebook, including some big names like Paypal, Ebay, Spotify, Uber, Lyft, Visa, Mastercard …

However, with the influence of social networks of 2.4 billion users, Facebook may face many barriers before bringing Libra to consumers.

According to Bloomberg, the new announcement from Facebook immediately faced opposition in Europe, with a call to adopt stricter regulations.

French Finance Minister Bruno Le Maire said Libra should not be considered a replacement for traditional currencies. At the same time, the head of the French financial agency called on the group of 7 central bank governors to prepare to report on this project right in the July meeting.

“Libra has undoubtedly become a legal currency,” Le Maire said in an interview with Europe 1. “This is an impossible and impossible problem.”

In the context that Facebook is suffering from numerous criticisms of privacy violations, the new move in the financial sector also draws attention from regulators and privacy advocates worldwide. gender. According to The Guardian, the US and UK authorities have expressed concern about the plan to encroach on Facebook’s financial sector.

In May, members of the US Senate Committee on Banking, Housing and Urban Issues wrote to Facebook CEO Mark Zuckerberg asking for questions regarding privacy and regulations. finance.

“It is important to understand how large social platforms use data available in ways that affect the financial life of consumers,” the content of the letter is written. “More importantly, understand how large social platforms use financial data to profile and select target customers.”

Facebook plans to release GlobalCoin cryptocurrency in 2020

Facebook’s virtual money is expected to help users pay across borders safely and at a cheap cost without a bank account,.. .

According to BBC sources, Facebook plans to release its own cryptocurrency called GlobalCoin in the first quarter of 2020, after internal testing later this year. This cryptocurrency will be released in dozens of countries around the world, helping users to make payment transactions securely and at cheaper costs without having a bank account.

To be able to launch, this virtual money will need to overcome many technical and logical barriers. Last month, Facebook’s chief executive Mark Zuckerberg met with central bank governor Mark Carney to discuss the opportunities and risks of issuing virtual currency. Facebook also works with the US Treasury and money transfer companies like Western Union, to discuss legal and operational issues related to crypto.

Facebook plans to release cryptocurrency for the first time at the end of last year. Accordingly, Facebook will partner with banks and brokers to allow users to convert dollars and other legal currencies into virtual currency. ? Facebook is also negotiating with online providers to accept this virtual currency, in exchange for lower transaction costs.

In March, Barclays’ Internet analyst Ross Sandler forecast GlobalCoin cryptocurrency could bring in revenue of up to $ 19 billion by 2021 in Facebook.

GlobalCoin marks Facebook’s second attempt at virtual currency, nearly 10 years later, Facebook Credits – cryptocurrency allows users to buy products on the system of this social network. Facebook Credits was “killed” after only 2 years of operation due to the failure of liquidity.

However, to launch GlobalCoin, Facebook has many problems to be solved in the context of the scandal of user data and regulations from authorities in recent years. The question posed by officials is how Facebook’s cryptocurrency will work and how the company will protect its customers and their personal information.

Information about GlobalCoin helped price many cryptocurrencies on the market increased on 24/5. Bitcoin rose 5% in value, trading at about $ 7,960, Bitcoin Cash and Ethereum copper both rose 7%, and Litecoin increased 11%.

Playing Stock and Golf

Art

Considering the level of “addiction”, people can be absent from the stock market for a few days, but a week without a busy three-day golf course is annoying. Asking about the golfers (golfers), I discovered a more shocking thing: only a small number of stockholders played golf but most golfers played securities and were very successful.

A standard Swing (swinging ball) is a smooth swinging action like an artist pulling a violin. The golf ball will only go far and precise with a speed swing swing, the whole body is completely relaxed but no oscillation deviates from the spin axis as the spine and head. If you only hit the ball by hand, you cannot become a golfer, because the art of playing with the ball requires a combination of the whole body and the senses. If you also believe that playing securities is an art then surely the golfers agree. You get the best performance on the field when the spirit is completely refreshing. You have a very high chance of investing in stocks if you feel comfortable in winning and losing.


Passion and patience

Rainy sun is a story of heaven, golfers (golfers) can be likened to a form of ascetic monks with their love of grass. They are ready to apply on their skin … tons of anti-skin peeling creams and so on from 12 noon to 5:30 pm, it rains and so on or wait until they can continue. Do you believe that most golfers are willing to take their clubs out of the house from 5 am or skip lunch to run to the yard? It is also hard to imagine that a professional and successful investor is lazy to read newspapers and find information, or find out how business theories apply on the stock market.
Lack of passion, a golfer never even managed to pass 3 – 6 months of death just to practice 10,000 balls, three times that number with ballless swing. If you play golf for 20 years, you have to give this sport the patience to study like an outsider who learns the first swing, 20 years is still a repeating swing. Many equestrian investors see flowers, they become losers, do not have a strong stance, always run the herd and say a catchphrase: price as …. When they suffer losses, they blame securities for gambling and do not give themselves another chance to become a successful investor.

A golfer wrote this: My first blow hit the ground, far away from the ball, causing my hand to feel electrocuted. The next blow also caused my hand to hurt terribly and the golf ball flew to the side, startling everyone to look back at me, looking uncomfortable. I thought, “This game is too hard.” But then after 10, 15 or 20 subsequent shots, I hit the ball – and with a quieter sound than the sound of the Ferrari F430, the small white ball sprang up. In the air, it floated in mid-air and flew 160 yards and landed on the ground, bouncing lightly on the grass.

To win, you must at least finish your destination

A new golfer can completely hit the ball beyond 170 yards with a 7, the professional golfers only reach 145-150 yards. Typically, a golfer after 1 year will have a shot to the shorter distance they have achieved when they first started, but in return is more accurate and stable.

In an ecstatic minute, an amateur golfer can finish a hole with a standard stroke (PAR), even a hole in the hole (hole in one – something Tiger Wood hasn’t done yet) but is broken many other holes. However, golf is a marathon art, you can excel in one third of the journey and then let it dive into the water again, bogged in a sand pit or around in the bush. No professional golfer didn’t double three times before a real swing and there was no lack of focus for one move. Each stroke is carefully estimated about tactics, ball directions, club type, wind direction, ball position …

People still don’t say greed and fear is the number one enemy of those stock players. To become a serious and successful investor, you must always win yourself. Want to learn the art of making money through stock, why don’t you try to take the stick to the yard and start hoeing.

Chinese Stocks Fell The Worst in 2018

According to Bloomberg, the Shanghai Composite Index has dropped by nearly 25% compared to the beginning of the year, making China a big stock market with the strongest decline in the world 2018.

The booming trade war between the US and China is seen as the main reason why Chinese stocks “evaporate” $ 2.3 trillion worth of capitalization this year.

Along with that, the debt reduction campaign in the economy pursued by Beijing has caused the debt margin on the stock market to fall to about one third compared to the peak in 2015.

Foreign investors continue to buy listed shares in the mainland China market through connection with Hong Kong stock, and Chinese state funds are supposed to intervene in the market to support prices. share. However, the indexes of Chinese stocks have continuously dropped sharply.

In addition to the US-China trade war, Chinese securities investors are also concerned about the slowdown of the domestic economy.

The $ 2.3 trillion capitalization decline of Chinese stocks this year was the strongest since Bloomberg began saving data on this market in 2002. The similar near capitalization of Chinese securities occurred. came into the global financial crisis 10 years ago, when the Shanghai Composite Index dropped 65%.

With the decrease in capitalization, China this year ceded the position of the second largest stock market in the world to Japan.

Along with the decline of the market is the decline of trading volume. The daily average trading volume of the Shanghai and Shenzhen exchanges combined has dropped to about 369 billion yuan, equivalent to $ 54 billion, the lowest level since 2014.

In Thursday’s session, only about 263.8 billion yuan of votes were transferred on both exchanges, about one-tenth of the peak in 2015.

China’s debt reduction campaign has achieved some results, at least in the stock market because of speculative activity.

The total outstanding securities margin is only about 756 billion Yuan on Tuesday this week, about 1/3 of the peak 3 years ago. In 2015, Chinese securities investors borrowed collateral at a record level to buy stocks, leading to a stock bubble.

Many loss investors have fled the Chinese stock market this year. A total of 75 mutual funds with a focus on Chinese securities dissolved in the year, according to Bloomberg data, the highest level ever since the data began to be recorded in 2007. Over the past 11 years , there are 88 Chinese securities mutual funds come to the dissolution outcome.

 

 

 

 

 

 

10 Tips for Fintech Start-up Gain Achievements

What is FinTech?
In a nutshell, FinTech is a term for the industry that provides financial services on technology platforms.

In China, from beggars or weddings to bundles of vegetables with QR codes, the QR code fever is flaring in China. It is estimated that every day a Chinese interacts with about 10-15 QR Code codes.
In Sweden, homeless people who are selling newspapers now can receive money by scanning credit cards, or receiving SMS messages. The amount of cash circulated in Sweden has dropped to the lowest level in 27 years.
In India, people can now go to the market to buy vegetables and pay by phone, via Paytm e-wallet.
In the Philippines, it is possible to trade virtual bitcoins in the 7-Eleven convenience store, through a partnership between the chain and the largest bitcoin in the Philippines, Coins.ph.
In Kenya, people can borrow and store money on the phone, via the M-Shwari service of the national telecommunications group Safaricom. Safaricom’s M-Pesa electronic wallet is being used by 40% of the Kenyan population.

Here are 10 tips that any Fintech startup should know so as not to miss the opportunity to work with large banks in the future.
1. To mobilize enough support capital
Determine before the start of the project that the cost is always double and it will take three times more than expected.
2. Estimate the time of the sales cycle
If you have a FinTech business solution for any financial institution – either a small organization or a central currency bank – must accept a long, arduous sales cycle with many delays. .
3. Learn about the market
Many startups believe that their solution will completely change the way the bank operates and no longer have to use existing tools.
4. Build a successful sales strategy
5. Share sales opportunities with all sales people
6. Get a head start
7. Spacious during preparation for sale
8. Do not cover everything too carefully
9. The site must be ready when the product starts to run
10. Product thinking must be independent

Will Google Refuse Advertising?

There is quite a bit of pressure on Google from MPs, UK Music and FA to refuse Viagogo advertising, so the big question is if the giant would consider accepting cash. Viagogo pays cash to have their ticket website at the highest search ranking, and several MPs, the trade body of UK Music and even a signed letter by the Football Association, is part of the urge directed at Google.

Paid advertising is how Google makes money and where this comes in is easier to explain by going back to where it all started. The letter recently sent to the senior executives of Google was first shown to the Guardian who shared that Viagogo’s notoriety in Google search rankings guides consumers to purchase theatre tickets, sports and music tickets that could be invalid. The signatories also included concerns that some of the fans were directed to the site, it’s a common channel for vendors to resell tickets with a massive markup and this takes place even while there are still tickets available elsewhere.

Google is known for their strict rules especially when it comes to search engine optimisation and may be in breach of its own set of rules and guidelines, which strictly demand that businesses who purchase prominence in Google search results via pay-per-click AdWords service must comply with all local and international laws. The letter mentions that legal proceeding must be brought against Google as the worlds most trusted brand for accepting cash in promoting the least trusted of them all. To Google obviously, Viagogo is a valuable client who spends considerable amounts on yearly paid advertising, and on the other side, Google has a responsibility to protect consumers.

Viagogo Facing Criticism

Viagogo, a UK website has also faced a load of criticism for its contentious business practices, it originates 75% of its site traffic from referrals via the search engine according to SimilaWeb data analysis. Sharon Hodgson, Labour MP, was one of the signatories of the letter explained that she heard numerous times from customers who were distressed by Viagogo. They were guided to the website due to its prominent position as they placed by Google as their too search. It is wrong that such a website as Google, who are trusted by thousands of online consumers direct these online clients to the most untrustworthy site on the web. Google’s main objective should be to protect consumers and to take all the necessary action to guarantee their safety, and many are looking forward to working with Google to correct this in the near future.

Only a few months ago, actually, it was in February of 2018 a new certification system was launched by Google, a system for ticket resellers with the objective to offer consumers a clearer form of information. What the signers of the letter now makes clear is that Google needs to ban the use of AdWords from Viagogo, it enables companies to leapfrog to the top, to enjoy top results from searches and it is all possible in exchange for a fee, the fee is a paid for link every time a searcher clicks on it. All eyes on now on Google and how it will handle the situation.

Say No to Timeshares

For the amateur traveler, the idea of having a timeshare is exciting and new. You are promised great prices for accommodation at top rated resorts every time you go on vacation, as well as a gift for just listening to the pitch. If you are smart, you would sit through the pitch, take your gift and head in the opposite direction. If you want to be fair and yet even smarter, walk away from anyone who offers you anything for free, there is usually a catch that you don’t want to be a part of.

I was a victim of this earlier this year when I went to the Bahamas on vacation for only 3 days and 2 nights. There I was, relaxing on the beach with my cousin on the first day, and approached by a man who was selling tonnes of services. He offered us a free breakfast and dinner, all we had to do was show up at a resort. We spent close to three hours just sitting and talking to someone before we got our breakfast, only to realize they were trying to sell us a timeshare package. Imagine how annoyed we were to waste half the day and our time was already limited. They didn’t even want us to leave, we had to fight our way to get out of there. If someone offers you something like this, be aware, it may be someone who is pitching timeshares and you don’t want to waste your vacation listening to what they have to offer, no matter how good the free gift may seem.

Timeshares are pitched as a dream vacation and a once in a lifetime opportunity that you don’t want to miss. While the majority of offers are legitimate and you do have genuine deals, in the long run, you would realize that owning a timeshare is not worth it and by the time you get back home from your vacation, it would be too late to stop the transaction. A timeshare allows you to use property for a certain part of the year, and the length depends on how much shares you own. So, for instance, if you own 2 shares out of 52, then you can stay at the property for 2 weeks in the year (a year has 52 sometimes 53 weeks). Whoever is selling you the timeshare may inform you of the cost to purchase the share but they may fail to tell you about all the other fees and charges or they may have a clause in the contract where fees are subject to change.

Usually, with timeshares, you are charged a yearly maintenance fee, property tax, utilities and other fees. Sometimes you may think it is affordable because you pay an initial deposit and maybe a small monthly fee. However, did you consider the hidden costs such as airfare travel to get to the resort every year? It also limits where you spend your vacation and you may have to book your slot months in advance. What if you decide to cancel your vacation or visit a different country? You would still be stuck paying for your share year after year. Trust me, you would rather use that money on an exotic vacation somewhere else. If you do sit through one of these pitches, never give them your credit card information.