Apple is to Huawei as Teacher is to Student
As for Sears former CEO Eddie Lampert, our first reader holds nothing back…
“Yeah. Scumbag. He sucked billions out of Sears Canada and left retirees holding the bag (re: pensions).
“Disgusting misuse of capitalism and gives more fuel to the left to impose regulations that may be unwise.”
And from one CEO to another:
“I’m the guy who wrote last week telling you that Bezos is going to croak… with zero nickels to rub together. (Well, he only has one nickel left now that his wife has cleaned him out in the divorce.)
“I’m from Philly and, when Bezos was pushing his HQ II, the city spent millions trying to win the project. Turns out [he] had no clue what he was doing so he closed the project altogether.
“And Bezos’s days are numbered now that he’s alienating everyone.
“It won’t be long before his second nickel is gone — once shareholders realize the scam unraveling before their eyes.
“The only thing holding the entire thing together is the insanely overvalued stock price. Once the stock goes, the whole shebang goes down in flames.”
Do you agree with the reader? Is Amazon’s value hyper-inflated?
Your Rundown for Thursday, May 30, 2019:
A Teacher-Student Relationship in Peril
Earlier this month, the White House included Chinese telecom Huawei on its blacklist of 69 companies the administration considers national security threats.
The upshot? U.S. companies are banned from doing business with blacklisted foreign corporations. (Well, it’s more squishy than that. U.S. companies can apply for exemptions, for example.)
To even the score, China’s considering a similar measure and targeting one company in particular: Apple. And there’s a groundswell of support among Chinese nationals — on the internet, at least. (Chinese bots?)
One key figure, however, is speaking out against sanctioning Apple… and he’s got millions — perhaps billions — on the line. Huawei’s founder Ren Zhengfei has gone on record at Bloomberg saying:
“That will not happen, first of all. And second of all, if that happens, I’ll be the first to protest. Apple is the world’s leading company. If there was no Apple, there would be no mobile internet. If there was no Apple to help show us the world, we would not see the beauty of this world. Apple is my teacher — it’s advancing in front of us. As a student, why should I oppose my teacher? I would never do that.”
First, translations can be problematic. Second, is this guy aware China’s a totalitarian state?
Under Chinese law, Huawei has no way to appeal or circumvent a government edict and — while we’re on the subject — Huawei’s also legally required to hand over any “sensitive” data about the U.S. to Chinese intelligence.
To wit, do you think the U.S. is right for blacklisting Huawei? On the other hand, do you think a retaliatory ban will hurt Apple’s bottom line?
Market Rundown for Thurs. May 30, 2019
S&P 500 futures are up 14 points to 2,797.
Oil is up 15 cents to $58.96 for a barrel of WTI.
Gold is down $1.30 to $1,285.00 per ounce.
Bitcoin’s up $60.47 to $8,724.95.
Have a good day. We’ll talk tomorrow.
For the Rundown,