Korean Stocks Plunged Because of Covid-19

The Kospi index is now down 2.76% and other Asian markets also go down after South Korea raised its disease warning to its highest level.

Samsung Electronics yesterday confirmed a worker at a South Korean phone factory positive for nCoV. The entire plant has been closed, Reuters said. However, Samsung claims this facility only contributes a small part in its smartphone production. Samsung shares this morning fell 2.7%.

To date, 6 people have died from the disease in South Korea, according to the Korea Centers for Disease Control and Prevention. The number of infections has skyrocketed recently, bringing the total number of cases to over 600, making Korea the second largest outbreak in the world.

According to Yonhap, investment banks and large economic organizations forecast the growth of the Korean economy will slide below 2% in 2020 due to the impact of the Covid-19 epidemic. In recent days, a new strain of corona virus has attacked South Korea’s economic activities. The average daily export of South Korea decreased by 9.3% in the first 20 days of February compared to the same period in 2019.

The Chinese market opened just lower. The Shanghai Composite Index lost 0.4%, while the Shenzhen Composite lost 0.1%. Hang Seng Index (Hong Kong) lost 0.75%.

The MSCI Asia-Pacific Index is now down 1.5%. Other markets such as Australia, Taiwan, and Singapore are all going down. Japanese market is closed today.

Global investors are still watching the evolution of the Covid-19 epidemic and its economic impact. New outbreaks outside China, such as South Korea, the Middle East and Italy, are the focus of investors’ attention. Strong control measures have been implemented and will inflict a severe blow on the global economy.

The Korean won lost 0.8% this morning against the US dollar, currently at the 6-month bottom at 1,218 KRW per USD. Both Japanese yen and Australian dollar are depreciating against the greenback.

In commodity markets, crude oil prices are plummeting. Brent currently lost 3%, about $ 56.8 a barrel. And WTI oil fell 2.5% to 52 USD. World gold price this morning continued to increase, currently trading around USD 1,660 an ounce.

Positive US Economic Growth Makes World Stock Market Go Green

The US stock market closed the trading day on 10-2 with signs of prosperity and stock indexes in Asia also increased slightly in the opening session in the morning of 11-2.

According to MarketWatch, in the morning 11-2, MSCI stock index, excluding Japan (closed due to holidays), increased slightly by 0.1% points, Australian stocks rose 0.6% points and Korea’s KOSPI index increased by 0.7% points. Meanwhile, the Nasdaq Composite and S&P 500 indexes increased well at the end of February 10 (US time) when investors recorded good sales of US companies in the fourth quarter of 2019.

Concerns about global supply chain disruptions due to the 2019-nCoV pneumonia epidemic have also subsided. Millions of workers and factories in China gradually return to work after the long Chinese New Year holidays.

Ending the session on 10 February at the New York Exchange (USA), some leading stocks of large corporations such as Amazon.com, Microsoft Corp and Alphabet Inc increased, which created a force to push 3 key stock indexes of the US market simultaneously gained.

Specifically, the Dow Jones increased by 174.31 points (0.6%) to 29,276.82 points and the S&P 500 increased by 24.39 points (0.73%) to 3,352.1 points. Especially, the Nasdaq Composite increased 107.88 points (1.13%) to a new record of 9,628.39 points.

In addition to factors related to economic activity in China, the US economic situation has many positive signs also somewhat make investors more excited. Analysts said the US economic growth in the fourth quarter of 2019 could reach 2.3%, higher than the forecast of 2% made in early January.

Whereas, concerned about the complicated development of the epidemic in China, will affect production and business activities in this Asian country, gold and USD are considered safe haven for investors.

Gold and USD prices simultaneously increased in the trading session on February 10. Future gold price in the US market increased by 0.4% to 1,579 USD / oz. Meanwhile, the dollar rose 0.17%. World oil prices have fallen by 20% compared to peak oil prices in January 2020 due to demand for oil in China, the world’s No. 1 importer of oil, plummeting due to epidemics.

Football Stocks Is Affected by Fans

Not only the player or the facilities, but the fan is also a factor that increases the stock value of many European teams. However, to be able to issue shares to the public (IPO), football clubs need both a long step and large assets to prepare.

Stocks of soccer clubs began to appear in the stock market in the early 1990s. The first clubs were Manchester United, Chelsea, Leeds United, Liverpool, etc.

One of the first strengths that clubs need is to own their own football fields as a collateral, which is also a key place to play and practice matches. Manchester United Club (MU) owns the second largest Old Trafford Stadium in England, after the Wembley National Stadium. The stadiums also have a museum area, a traditional room, a restaurant (Red Café – Old Trafford) and special rooms for VIPs. The training center is a medium area with many physiotherapy rooms, swimming pools, etc.

The system to find young talent and train good young players is an advantage that clubs have to show class. MU has this center since 1930, has trained many excellent players like Duncan Edwards, Bobby Charlton, Ryan Giggs, David Beckham, Paul Scholes, etc.

Funding comes from the tournaments as well as the sponsors and sponsors who contribute to the club’s operation, maintenance and development. In addition, it is a source of money from exclusive advertising contracts and long-term sponsorship of sports-related brands.

Up to the time of listing, the clubs have a long history of national football championship, including MU 7 times, Arsenal 10 times, FA cup (MU 7 times, Arsenal 5 times) and super cup football. playing English (MU 10 times, Arsenal 8 times). These are the most successful clubs in England as well as having the number of fans in Europe. MU has about 13 million fans in the UK and more than 75 million fans in the world.

With solid infrastructures, high rankings in domestic and continental seasons, a huge number of fans, in 1991, MU changed to a new form of limited company with shareholding and listing. listed on the London Stock Exchange for £ 18 million.

he stock listing is also a way for fans to support, build and be loyal to their favorite club.

The stock of the club goes up and down depending on what they achieve. In addition, from the up and down rankings in the rankings as well as the advertising contracts the club has with firms, businesses, the total number of tickets sold per game, training outstanding players. and later on, buying high class players for the club.

Just Rising, US Stocks Continued to Decline

The US stock market lost points when it closed on Tuesday although it had previously set a new internal record. Investors were somewhat disappointed to hear that the US would probably maintain tariffs on Chinese goods until after the Presidential election in November 2020.

Bloomberg reported that whether the US completely eliminates tariffs imposed on Chinese goods will depend on China. It is Beijing’s compliance with the first-stage trade agreement that the two sides are expected to sign on Wednesday (January 15).

The S&P 500 is at a record level with the average price / earnings ratio (P / E) of the stocks in the index at 18 times. According to Joe Saluzzi, Director of Themis Trading, investors view the Bloomberg news as a reason to take profits.

Mr. Saluzzi used to compare the current mood of investors with the character of super spy in the action film series The Bourne of Hollywood movies. According to him, US stocks are in a market like Jason Bourne. The first thing when Jason Bourne enters a room is to find a way out in case he needs to.

All three Dow Jones, S&P 500 and Nasdaq hit an internal record before fading in the afternoon. While the S&P 500 and Nasdaq fell at the close, Dow Jones closed with a slight gain.

The US stock market has risen sharply in recent weeks thanks to optimism that the US-China trade war escalation will help boost the profits of listed companies.

Reuters cites sources that China has pledged to buy an additional $ 80 billion in manufactured goods and an additional $ 50 billion in energy from the US in the next two years.

JPMorgan Chase, the largest US bank, rose 1.2 percent after the bank opened its fourth-quarter earnings report on Wall Street in 2019, overall profitability was better than forecast and revenue growth was good. in the transaction and underwriting sectors.

Wells Fargo shares plunged 5.4% after the financial report showed that profits dropped because the bank had to spend $ 1.5 billion on provision of legal expenses. Citigroup shares rose 1.6% thanks to earnings that exceeded expectations.

Is Investing in Stocks like Gambling in Casinos?

There are many people who say that investing in stocks is like gambling in the Casino. Perhaps so, investment and gambling are all related to risk. But gambling is often a short-term activity, while stock investing can last a lifetime. So, in the end, is stocks investment gambling?

Investment is the act of allocating capital to an asset such as a stock with the expectation of making a profit. Risks and profits go hand in hand. Low risk equals lower expected profit while higher profit is usually associated with higher risk. Gambling is a bet based on randomness. That means you will risk making money in an uncertain event and not have many opportunities.

Investors must always decide the amount of money they want to risk, for example 2-5% of the capital. Investors almost know the advantages of diversifying their portfolios. However, expectation of risks and profits can vary greatly in the same asset class, especially stocks.

In essence, this is a risk management strategy in investing: Allocating capital on different assets or different types of assets in the same portfolio, can help minimize potential losses. There are many investors who use technical analysis on stock charts to improve their holding efficiency. Besides, the profit from stock investment will be affected more or less by the commissions paid for stock trading.

More importantly, when you gamble, you own nothing, but when you invest in a stock, you own a stake in the company. And in fact you can even receive company dividends in the form of stocks.

Like investors, gamblers must also weigh the capital carefully. Most professional gamblers are quite proficient in risk management. They carefully study the rules of the game as well as the opponent or the thing they bet on. Card players often seek advantage from other players like poker. They also study the opponent’s manners and betting patterns in hopes of obtaining useful information.

In both gambling and investing, the main principle is to minimize risks and maximize profits. But, when it comes to gambling, the house always has an advantage over the player. In contrast, the stock market is likely to keep rising in the long run. This does not mean that a gambler will never win the lottery and that does not mean that a stock investor will always enjoy positive returns. However, over time, if you continue to play, the odds will become more beneficial to investors than a gambler. You can challenge yourself by researching online casinos podcast before investing in stocks seriously.

Thai Tennis Coach and Stories of Increase in Stock Market

The story of the Thai tennis coach points out that the rise of the emerging stock market is due to non-essential consumer goods stocks and this trend continues to be promoted by investors.

Samark Srisarakham first came to Bangkok with his brother when he was 11 years old, sleeping in a public bed right next to a tennis court. He did not dare to imagine growing up with life with beautiful restaurants, new clothes and the most modern electric appliances.

But 30 years later, he became a tennis coach in the Thai capital. He is a perfect illustration of what former Goldman Sachs bank president Jim O’Neil called “the greatest story in the world” when it comes to investing:   consumer advancement in emerging markets.

Coming from a poor town in rural northern Thailand, Samak owns 3 properties and 2 cars. His two daughters attend international school, and his family has a collection of smartphones and tablets. Samak’s life-changing stories from poverty to wealth are the key to explaining the biggest gains in emerging-market stocks this year.

Shares of non-essential consumer companies rose 23% in 2017. These companies specialize in selling products that serve purposes beyond what is needed when consumers have more than enough money to spend. Rising technology stocks helped push MSCI emerging market index the best year since 2009.

Angelo Corbetta, Head of Asia Equity at Pioneer Investments Ltd in London, said: Consumer spending is a key driver of growth across emerging markets, especially in Europe. ASIAN.

While poorer countries suffer from a shortage of infrastructure, e-commerce is filling that gap. Thus, it helps to boost consumption through going to select stores according to buyers’ needs. Consumption trends have changed rapidly in the past few years with sales focused on online sales improved with an increasing number of users of digital technology.

Investors Bet on Stock Market

Despite worries of the economic downturn, Wall Street investors still bet on the stock market, helping Wall Street reverse its rebound in Wednesday session (August 28).

Following the decline of Tuesday session, US stocks continued to open in the red on Wednesday as worries about economic recession and mixed statements of US-China senior leaders on trade negotiations. trade. However, very soon after that, Wall Street reversed its recovery thanks to financial and energy stocks.

Financial stocks rebounded to regain all of what was lost in the previous session, and information of US oil inventories decreased, helping crude oil prices rose 1.5% to support the rise of energy stocks. Another point, on Wednesday, the yield of 30-year US government bonds fell to a record low, lower than the average dividend yield of the S&P 500, causing investors to abandon bonds and pour money. back to stocks, despite fears of recession and the US holding the decision to increase taxes by 5% to $ 300 billion of Chinese goods from September 1 and December 15.

Next week, investors will look at monthly employment reports and manufacturing data that could guide expectations about another possible rate cut from the Federal Reserve System – Fed at its mid-September meeting.

At the end of August 28, the Dow Jones increased by 258.20 points (+ 1.00%) to 26,036.10 points. The S&P 500 index increased by 18.78 points (+ 0.65%), to 2,887.94 points. The Nasdaq Composite Index increased by 29.94 points (+ 0.38%), to 7,856.88 points

Meanwhile, on the European stock market, the opposite movement continued to take place in the fourth session, but the position reversed. While German and French stocks dropped because investors were worried about the global recession, British stocks increased again when Brexit was chaotic, causing the pound to drop, thereby supporting the stock market.

London Stock Exchange Wants to Spend 27 Billion USD to Buy Refinitiv

LSE is negotiating to buy Refinitiv Holdings financial data analysis company for $ 27 billion including debt.

According to Reuters, the acquisition comes less than a year after US asset management company Blackstone Group acquired a majority stake in Refinitiv from Thomson Reuters information and media company. In the deal with Blackstone, Refinitiv is valued at $ 20 billion including debt. Thomson Reuters is the parent company of Reuters News, which currently owns a 45% stake in Refinitiv.

LSE said it plans to issue new shares to pay for the deal, which will make Refinitiv’s existing investors become shareholders of the LSE. In the company after the merger, Refinitiv’s current shareholders will hold about 37% and less than 30% of the voting rights. Refinitiv had a debt of $ 12.2 billion at the end of December last year, the result of the acquisition by Blackstone. LSE is expected to take over this debt if it can buy Refinitiv.

LSE said that the possibility of negotiating with Refinitiv is not certain. The source of information revealed if the two sides agreed to the transaction, the agreement will be finalized next week.

Thomson Reuters shares rose 4.5%, reaching a record high in Friday’s session in Toronto, after news of the deal was announced. This stock price has increased 62% since January 2017, when Blackstone and Thomson Reuters announced the Refinitiv deal.

Owning Refinitiv will help LSE expand its information services business – an area that this floor is aiming to become a more stable source of revenue compared to the main activities related to transactions.

LSE operates stock markets and derivative transactions including London Stock Exchange, Borsa Italiana, MTS and Turquoise. The company has a market capitalization of around £ 19.3 billion ($ 23.9 billion) and a debt of about £ 1 billion.

Refinitiv purchases can help LSE reduce the shock from market fluctuations that may occur in the case of Britain leaving the European Union (EU), ie Brexit, without agreement.

Bitcoin Price Is Fluctuating More Than Ever

Over the past few weeks, the price of virtual currency Bitcoin has fluctuated greatly, soaring to nearly $ 14,000 on June 26 before returning to about $ 9,000 on July 2. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value. Since the beginning of the year, this virtual currency has recovered nearly 70% of the value.

According to Naeem Aslam, head of market analysis of ThinkMarkets FX, an increase over the $ 10,000 mark of Bitcoin on June 21 has sent a strong signal to retail investors that Bitcoin has returned. This is the first time this virtual currency has surpassed the price of $ 10,000 since March 2018. Some other virtual money like Ethereum, XRP, Litecoin and EOS also increased, CNN said.

Lennon Sweeting, institutional investor manager for Coinsquare Capital Markets, said major investors are taking advantage of the short-term volatility of the virtual currency. Some big investors are still holding lots of Bitcoin and can have a big impact on the market.

Analysts say that the recent unexpected volatility of Bitcoin has some fundamental causes. According to Aslam, the social network Facebook plans to release virtual currency called Libra is a cause. He said it would not be surprising to see Amazon e-commerce company or other technology and retail giants want to enter the virtual money market.

However, Facebook’s Libra is also controversial, especially when the social network is still addressing the question of turning roles in global elections over the past few years and the spread. of fake news on its platform.

Sweeting said many investors were excited about the effects Libra brought to Bitcoin. However, he stressed that the difference between blockchain and Bitcoin is worth noting. The Libra push is likely to promote the widespread adoption of blockchain but does not mean the same thing for Bitcoin virtual currency.

London Stock Exchange Is Ready to Use Blockchain Technology

The stock exchange over 300 years old in the British capital is one of the oldest stock exchanges in the world. In the digital age, the floor is thinking of deploying new technologies like blockchain.

According to CNBC, Nikhil Rathi, CEO of London Stock Exchange, suggested that the blockchain, which is the technology to record data on a distributed computer network instead of focusing, could have applications in the stock exchange in England.

You can certainly visualize distributed ledger technology with applications during the release process. I can imagine the technology used to settle. Rathi said the London boss said that he found many different types of interesting ideas from rival exchanges and would follow up on which ideas the market was most interested in.

For example, the Swiss SIX platform is seeking to launch a platform based on the blockchain to speed up the transaction process, while the Gibraltar Stock Exchange launches a digital version of many securities, such as corporate bonds.

The London Stock Exchange recently bought a minority stake in Nivaura, which announced that they issued the world’s first automated cryptocurrency listed bonds. The floor said they tested the issuance, receipt, and transaction of shares with Nivaura in the managed “sandbox”. However, they did not say whether testing would be implemented in a real environment.

Many financial firms say they see great benefits for the industry from blockchain technology but are separating themselves from pre-coding. The first blockchain was created to make the public ledger for bitcoin transactions. For example, JPMorgan said it would roll its own cryptocurrency into USD and set aside for large payments. JPMorgan CEO Jamie Dimon meanwhile is the critic of pre-coding, calling bitcoin a fraud.

Rathi said that despite his support for competition and innovation in the capital market, some extreme manifestations in pre-coding made him a bit cautious. Cryptocurrency prices plummeted after a dizzying price rise in late 2017, early 2018. Bitcoin once reached $ 20,000 in December 2017, currently priced at $ 5,300-5,400, according to Coinmarketcap.