10-year Treasury yield dives to the lowest in a year after Fed says no more rates hikes

Posted by & filed under Company Analysis, Financial analysis, Governments & Regulators, Growth & Valuation, Personal Finance.

Description: The yield on the benchmark 10-year Treasury note dove to its lowest level since January 2018 after the Federal Reserve said that it’s no longer likely that it will hike rates again this year.

Source: CNBC.com – video report

Date: Mar 20, 2019

Link: https://www.cnbc.com/2019/03/20/us-treasury-yields-tick-lower-ahead-of-fed-rate-decision.html

Questions for discussion:

  • What is the significance of this decision?
  • How should investors deal with it, in your opinion?
  • How will the stock and bond markets react, in your opinion?

Levi’s Raises $623 Million in Market Return as IPOs Heat Up

Posted by & filed under Company Analysis, Financial analysis, Growth & Valuation, Personal Finance.

Description: More than 145 years after making the first pair of blue jeans, Levi Strauss & Co. is proving that investors are ready to buy into a company that wants to be known for more than just denim.

Source: Bloomberg.com

Date: Mar 20, 2019

Link: https://www.bloomberg.com/news/articles/2019-03-20/levi-s-set-for-return-to-public-market-as-ipo-action-heats-up

Questions for discussion:

  • Why was the IPO so successful?
  • Do you think the valuation makes sense?

Opinion: When the U.S. falls into a recession, a credit bubble will explode

Posted by & filed under Economic Analysis, Governments & Regulators, Growth & Valuation, Market Analysis, Personal Finance.

Description: The U.S. economy, at its own peril, has been driven by cheap credit

Source: MarketWatch.com

Date: Mar 20, 2019

Link: https://www.marketwatch.com/story/when-the-us-falls-into-a-recession-a-credit-bubble-will-explode-2019-03-20?mod=mw_theo_homepage

Questions for discussion:

  • What is the meaning of the term “credit cycle”?
  • Do interest rates determine stock and bond market valuations?
  • What do you think will happen in the next 12 months?

Google Fined $1.7 Billion by E.U. for Unfair Advertising Rules

Posted by & filed under Company Analysis, Financial analysis, Governments & Regulators, Growth & Valuation, Industry Analysis, Personal Finance.

Description: LONDON — European authorities on Wednesday fined Google 1.5 billion euros for antitrust violations in the online advertising market, continuing its efforts to rein in the world’s biggest technology companies.

Source: NYTimes.com

Date: Mar 20, 2019

Link: https://www.nytimes.com/2019/03/20/business/google-fine-advertising.html

Questions for discussion:

  • What are the reasons given for the fines?
  • From a profitability point of view, is this good news for other technology firms?
  • How should technology investors view this decision?

KFC Aims to Keep Its China Edge With AI Menu, Robot Ice Cream Maker

Posted by & filed under Company Analysis, Growth & Valuation, Management Issues, Personal Finance.

Description: In Shanghai’s southeastern district of Xujiahui, Colonel Sanders’s smiling visage looms over the restaurant entrance, as it does at thousands of KFC locations around the globe. But step inside, and it quickly becomes clear that this is no ordinary KFC.

Source: Bloomberg.com

Date: Mar 20, 2019

Link: https://www.bloomberg.com/news/articles/2019-03-20/yum-china-is-building-the-kfc-of-the-future?srnd=businessweek-v2

Questions for discussion:

  • What is motivating the firm to use AI in stores?
  • What information does this new technology provide to management?
  • Do you think the company presents a “revised” growth opportunity to investors?

Boeing 737 Max 8 grounding will cost Canadian airlines $3.7 million a day: analyst

Posted by & filed under Company Analysis, Growth & Valuation, Industry Analysis, Personal Finance.

Description: The grounding of the Boeing 737 Max 8 jet involved in the Ethiopian Airlines crash that killed 157 will cost Canada’s two biggest airlines $3.7 million a day in revenues, according to an analyst.

Source: Yahoo.Finance.ca

Date: Mar 15, 2019

Link: https://ca.finance.yahoo.com/news/boeing-737-max-8-grounding-will-cost-canadian-airlines-37-million-in-daily-revenues-analyst-185856163.html

Questions for discussion:

  • Do you think the estimate of financial impact presented is fair?
  • Do you think current stock prices are fair reflections of current and possible future costs to the airlines?
  • What are the risks to investors, going forward?

Mohamed El-Erian joins Influencers with Andy Serwer

Posted by & filed under Company Analysis, Economic Analysis, Financial analysis, Governments & Regulators, Growth & Valuation, Industry Analysis, Management Issues, Market Analysis, Personal Finance.

Description: Yahoo Finance Editor-in-Chief Andy Serwer sits down with Mohamed El-Erian, Chief Economic Advisor at Allianz, former deputy director at the International Monetary Fund, and former chair of President Obama’s Global Development Council.

Source: Yahoo.Finance.com – video report

Date: Mar 14, 2019

Link: https://finance.yahoo.com/video/mohamed-el-erian-joins-influencers-100000239.html?soc_src=strm&soc_trk=ma

Questions for discussion:

  • Summarize the highlights presented in this interview.
  • What should investors take away from the opinions presented?

As Costs Skyrocket, More U.S. Cities Stop Recycling

Posted by & filed under Financial analysis, Governments & Regulators, Industry Analysis, Management Issues, Personal Finance.

Description: With China no longer accepting used plastic and paper, communities are facing steep collection bills, forcing them to end their programs or burn or bury more waste.

Source: NYTimes.com

Date: Mar 16, 2019

Link: https://www.nytimes.com/2019/03/16/business/local-recycling-costs.html

Questions for discussion:

  • What are the financial details driving the decision-making in this situation?
  • What are some likely solution-oriented scenarios that investors should consider – such as a recycling tax on products?

Modern Monetary Theory explained by Stephanie Kelton

Posted by & filed under Governments & Regulators, Growth & Valuation, Market Analysis, Personal Finance.

Description: Modern Monetary Theory (MMT) is gaining traction in American politics, energizing the progressive left and roiling deficit hawks. Stephanie Kelton, who advised Bernie Sanders’ 2016 presidential campaign, explains the basics.

Source: CNBC.com – video report

Date: Mar 08, 2019

Link: https://www.cnbc.com/video/2019/03/01/stephanie-kelton-explains-modern-monetary-theory.html

Questions for discussion:

  • Summarize the key points that explain the theory and the debate?
  • What are your thoughts on the matter?
  • How should investors treat this debate?

Opinion: U.S. corporate leaders are getting worried about a recession

Posted by & filed under Economic Analysis, Growth & Valuation, Personal Finance.

Description: Latest earnings calls reflect growing concerns about the economy

Source: MarketWatch.com

Date: Mar 15, 2019

Link: https://www.marketwatch.com/story/us-corporate-leaders-are-getting-worried-about-a-recession-2019-03-15?mod=mw_theo_homepage

Questions for discussion:

  • What is the basis for a slowdown at this time, according to the report?
  • Do you agree with the assessment?
  • What should investors do, given the information in the article?