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    Green light for AT&T’s purchase of Time Warner

    On June 12, a federal judge approved telecommunications giant AT&T’s takeover of Time Warner in a rebuke to the US Justice Department.  The deal, worth $85bn, has sparked fears of a frenzy of media acquisitions that would make the market less competitive. The Department of Justice’s attempt to block the merger drew suspicions of political motivations The case hinged on whether vertical integration can result in the type of anti-competitive practice that horizontal mergers see. Time Warner, a content producer, and AT&T, a content distributor, argued that since they do not compete in the same market, the effects on competition woul...
    On June 13, 2018 / By
  • News

    Bayer to retire Monsanto’s name upon completion of merger

    On June 4, German drugmaker Bayer announced it would retire the Monsanto name upon closing its acquisition of the company, taking its products under Bayer’s portfolio. The merger, which received regulatory approval on May 29, is set to close on June 7 and will be the biggest outbound merger by a German company since Daimler-Benz bought Chrysler in 1998. Retiring Monsanto’s name from Bayer’s portfolio is a prudent public relations move for the German company Retiring Monsanto’s name from Bayer’s portfolio is, apart from standard M&A practice, a prudent public relations move for the German company. Monsanto has received heavy cri...
    On June 4, 2018 / By
  • News

    Federal Reserve announces proposed changes to Volcker Rule

    On May 30, the US Federal Reserve unveiled proposed changes to the compliance requirements of the Volcker Rule, one of the foundational pillars of the Dodd-Frank Act that was put in place in the aftermath of the financial crisis. Critics see the move as a continuation of the Trump administration’s undoing of measures put in place to prevent another financial crisis Generally speaking, the Volcker Rule puts limits on proprietary trading by banks. Proprietary trading allows banks to make risky bets with the bank’s own funds for the purpose of direct profit, as opposed to the indirect revenue received via commission from the trades they mak...
    On May 31, 2018 / By
  • News

    Promoting diversity within a corporate world

    April 2018 saw the deadline for the new gender pay reporting regulations pass, and it is clear that there is still some way to go before there is pay parity between the genders. In 2010, the European Commission officially named gender balance as a priority on its political agenda. Yet, eight years on, it is questionable whether this is a reality in the UK’s financial sector. Meanwhile, the Financial Conduct Authority has recently called on the sector to work harder to address issues around diversity and misconduct. How is the sector responding to the growing focus by regulators, government and the media on the wide spectrum of issues relat...
    On May 11, 2018 / By
  • Finance

    Bulls Back In Retreat Mode

    With the S&P 500 down in two of the last three days, investors are once again on the defensive causing bullish sentiment to retreat. According to this week’s sentiment survey from AAII, bullish sentiment declined from 36.91% down to 28.4%. While anything sub-30% is considered low, we actually saw a lower weekly print back in the first half of April when bullish sentiment dropped down to 26.09%. One trend that is emerging in bullish sentiment, though, is just like the trend of the overall market- lower highs. Since peaking at close to 60% earlier this year, we have seen a steady downtrend emerge in sentiment where each week that has an i...
    On May 3, 2018 / By
  • Finance

    South32 Limited Mines Many Metals

    Every New York stock exchange trading day I’m posting a daily dividend stock or fund review. I’ll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I’ve named the Safari to Sweet Success. This week the latest portfolio I’m building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the basic materials sector. That sector includes thirteen industries all tied to mined or manufactured commodities. Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals,...
    On May 3, 2018 / By
  • Finance

    Everyone Is On The Same Side Of The Boat

    In early 2018, I penned a post which illustrated the legendary Bob Farrell’s 10-investment rules. Bob, one of the great investors of our time, had a very pragmatic approach to managing money. Investing rules, and a subsequent discipline, should be a staple for any investor who has put their hard earned “savings” at risk in the market. Unfortunately, far too many invest without either which leads to less than desirable outcomes. As of late, there has been a lot of excitement over two areas of the market in particular: interest rates and oil prices. In fact, at this moment the speculation in these two areas is at record levels. Why ...
    On May 3, 2018 / By
  • Finance

    E USDJPY Turning Bearish

    USDJPY is moving nicely to the downside, now 90 pips from the highs so it appears that top has been formed. We also see current reaction acting impulsively so more downside can be seen as larger three wave decline is likely here that can continue through 108.95 and possibly down to 108.50/108.00 area. USDJPY, 1h...
    On May 3, 2018 / By
  • Finance

    Tesla’s Bizarre Conference Call: Musk Went After Analysts And His Own Execs

    Tesla’s conference call on Wednesday gets a 10-bowl popcorn rating. 10-Bowl Rating Tesla CEO Elon Musk’s performance on Wednesday’s earnings call was bizarre and contentious. Musk attacked after everyone. After hours, shares of Tesla took a hit: Elon Musk acted like a jerk, and Tesla stock paid the price. Tesla Inc. Chief Executive Elon Musk held a long, odd earnings conference call Wednesday in which he insulted analysts, the media, federal regulators and people who died behind the wheel of his cars, and then told anyone concerned about volatility not to invest in his company. Unsurprisingly, volatility ensued, as Tesla (T...
    On May 3, 2018 / By
  • Finance

    US Trade Deficit Plunges Most Since The Financial Crisis

    What a difference a month makes: just 30 days after the US posted the biggest trade deficit since the financial crisis, when the US trade balance was some $57.6BN against the US, moments ago the BEA reported that the US trade deficit plunged by a whopping $8.7 billion, dropping to $49BN, better than then $50BN expected, and the biggest monthly drop (in dollar terms) since the financial crisis. According to the census bureau, the deficit decreased from a revised $57.7 billion in February to $49.0 billion in March, amid a perfect trade environment as exports rose and imports declined, or as Trump would say, “his policies to boost US tra...
    On May 3, 2018 / By