The E.U. Is Useless…
Dear Rundown Reader,
No, this isn’t an attack on their policies…
It’s a simple acknowledgement. When the E.U. acts little happens, good or bad.
Today’s Rundown shows how Google proved this. Then we look at what’s ahead for the tech giant.
But first a few letters… Starting with Bitcoin:
“Bitcoin is the most nearly perfect form of money mankind has yet devised.”
Maybe one day, but BTC has a major problem called volatility. Price swings are too wild for day-to-day transactions. Ray Blanco has a great take on this here.
“Bitcoin goes to the moon”
The supply / demand argument is compelling. 21 million BTC supposedly will ever exist. If that is true, “to the moon” may be an understatement.
On Trump, tariffs and the trade war:
“Consumers are always the losers as tariffs do nothing but cause prices to increase.”
Consumers will always lose, but could we save ourselves the geopolitical drama?
“I love Trump and everything he’s doing.”
An article from the New York Times notes tariff supporters accept the need to “tighten their belts” while things play out. They say it’s for the greater good of America.
Are you willing to tighten your belt? Give us your take.
Your Rundown for Tuesday, July 24, 2018…
Google Laughs at the E.U. All the Way to the Bank
What E.U. fines?
That’s the tone on Wall Street this morning regarding Alphabet Inc. (GOOG) and their stock is surging.
Shares of GOOG are up over 4% pre-market today. The chart so far this week is impressive:
GOOG reported earnings yesterday and crushed expectations across the board.
Adjusted earnings per share came in at $11.75, beating estimates of $9.59. Revenue topped the Street’s expected $32.17 billion, coming in at $32.66 billion.
Q2 sales came in at $26.24 billion also beating Wall Street’s expectations of $25.55 billion.
The driver behind GOOG’s stellar report is its ad revenue. Ad revenue is by far the biggest chunk of GOOG’s bottom line and that came in at a whopping $32.51 billion, notes MarketWatch.
Now shares are on course for record highs.
Apparently a $5.1 billion fine is a drop in the bucket for GOOG.
The E.U. gave GOOG their best shot, and the company barely batted an eye.
Add this to the long list of times when the E.U. tried to make an impact and nothing happened.
The E.U. is useless, an amorphous-blob if you will.
GOOG on the other hand is a powerhouse company that can’t be stopped.
One day GOOG could be the world’s most expensive stock.
There’s still time to be an early mover.
Now, turning to the markets this morning…
Market Rundown for Tues., July 24
Yield on the 10-Year Treasury sits at 2.96% this morning, down 0.005. The dreaded 3% is in sight… Does it matter? Tell us what you think.
S&P 500 futures are up 7.00 to 2,819.
Oil’s flat at $68.31. Bloomberg this morning reports, “big oil is raking in the cash” and this could work its way to folks via dividend payouts. Income investors take note.
Gold’s up $1.80 to $1,227. Last week’s slow rise continues.
Bitcoin goes for $8,271 this morning, according to CoinDesk. The bulls are winning. Now let’s see if BTC can establish some support at this level.
We’ll talk again on Wednesday.
For the Rundown,