Investing and Global Finance News

Category Archives: News

US Treasury Bonds

According to a recent article from The Associated Press, the “benchmark for most other investments” are US Treasury bonds.  It is these  which are thus regarded “among the closest approximations to a “safe” investment in the financial system.”

The problem thus is when prices for these start to drop, resulting in a jump in the bonds’ yields.  There was a recent S&P 500 drop by 3.3 percent marking its largest loss since February, hitting technology markets the most.  This, according to the article is “the latest sign that markets may be struggling to adjust to a new era, where returns are no longer juiced by the ultra-low rates that prevailed in the years following the Great Recession.” It is also indicative that the decreasing interest rates which started in the early 1980s is now finished.

What this means is four-fold:

  1. This is bad for stocks as it’s more expensive to borrow and reduce profits for companies
  2. Not good for investors as bonds are meant to be the safe part of what they are investing for their clients
  3. “biggest threat to stocks would be a burst of inflation that causes the Federal Reserve to sharply accelerate” the Fed’s rate increase.

And, according to Martin Baccardax in an article in The Street, “The U.S. Treasury sold benchmark 10-year notes at the highest auction yield since 2011 Wednesday, Treasury data indicated, but demand for the $23 billion auction fell to lowest since February, suggesting the recent rise in global fixed income markets is failing to attract investors.”

Advice for Entrepreneurs: Debbi Fields, Rick Garcia & Others

What makes a company, or a business idea, successful? When a business is in its infancy, there’s often a fine line between success and failure. An important guiding principle for companies is to build a strength-based model that focuses on previously developed talents and skills. Many successful companies have grown from one individual’s expertise. Mrs.… Continue Reading

Trade War and Reacting Futures

Once Treasury Secretary Steven Mnuchin declared that the trade war was “on hold,” futures took a huge jump. Following discussions and negotiations, they reached a “very comprehensive framework agreement that needs to be implemented” with a large variety of components. One of these has been Trump’s focus on trade deficit reduction through the significant increase… Continue Reading

New Asian Hedge Funds

While the beginning of 2017 did not look all that good for the emergence of new hedge funds in Asia, the tables seem to be substantially turning.  One of the ways in which they are doing this according to a recent Bloomberg article, is by “striking out on their own.” Examples of this action include:… Continue Reading

Hedge Fund Pushes Back on Fox-Disney Deal

Walt Disney recently announced a takeover of 21st Century Fox, and a hedge fund with a small stake in Sky has taken issue with the transaction. According to their claim, minority shareholders in the UK-based broadcaster will be hit with a large fee as a result, unless the regulator steps in. The Takeover Panel is… Continue Reading

Adidas Leading Sportswear Industry with Significant Yearly Growth

Adidas recently revealed a 31% increase in yearly sales in North America, while its competitors have reported losses of up to 3%.  According to Nike and Under Armour, the athletic market is becoming more difficult to navigate, but Adidas’ gains indicate that that isn’t the case. Mark King, head of Adidas North America, explained that… Continue Reading

Staying Up To Date on Environmental Issues

It’s always important to stay up to date with environmental issues in the area in which you live. One of these issues is about landfills and how people are taking care of potentially threatening issues with them. In a recent opinion piece in the St. Louis Post-Dispatch, Missouri State Senator Bill Eigel wrote a thought-provoking… Continue Reading

General Motors Going All-Electric

As the transportation and auto industry evolves, many manufacturers are working to remain competitive. In a dramatic move, General Motors recently revealed its plans to shift into all-electric cars by 2023. Over the years they will launch at least 20 cars, both battery-electric and fuel-cell-electric vehicles. “General Motors believes the future is all electric,” said… Continue Reading