Breaking News
0

How, Why, Huawei, Accused of Violating US Sanctions

By Vestact Market OverviewDec 07, 2018 09:56
za.investing.com/analysis/how-why-huawei-200197931
How, Why, Huawei, Accused of Violating US Sanctions
By Vestact   |  Dec 07, 2018 09:56
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The news broke yesterday that Meng Wanzhou, the CFO of Huawei and daughter of the group's founder, was arrested on Saturday in Canada. Huawei is accused of violating US sanctions with Iran. Ms Wanzhou will appear in court today, and depending on how it goes may be extradited to the US. The news of the arrest sent financial markets reeling.

Imagine if Tim Cook was taken into custody in China? Think about how angry the US would be. The next time the US and China sit down to talk about trade, the first thing on the agenda will be a discussion about the release of Ms Wanzhou. The massive sell-off in markets yesterday tells you what traders think about the future relationship between the two powerhouse countries.

A saving grace for the US market, with about 2-hours left of trading, was the news that the Federal Reserve might slow, even further, the raising of interest rates. The news even helped the Nasdaq finish in the green. Does this show that the market is more concerned with the Fed than with trade talks?

Yesterday the JSE FTSE/JSE All Share closed down 1.75%, the S&P 500 closed down 0.15%, and the Nasdaq closed up 0.42%.

Michael's Musings

Last week Barry Ritholtz went on a rant about share buy-backs; Bad Buybacks.

He makes the point that companies are wasting billions on share buy-backs, instead of using that money for innovation. In his rant, he implies that directors are biased when considering when to do share purchases because creating extra demand for your stock also increases the value of insider share options.

One of the companies that he sets his sights on is Apple (NASDAQ:AAPL). His suggestion was, instead of spending tens of billions on buying back stock, what about buying Tesla, Netflix (NASDAQ:NFLX) or Disney? Imagine how Tesla or Netflix would fly if they didn't have to worry about their growing debt burden?

We have had the same suggestion in the office for the last few years. In the case of Tesla, you would have Musk focussing on producing the best car in the world, and Apple would focus on funding it. It is not too late!

Signing off

Asia is higher, Tencent is higher and so is the JSE All-share. Last night the US showed that they are officially an oil net exporter, the first time in 75-years. This coincides with OPEC meeting in Vienna, where the cartel is likely to reduce their production. The big data points for today; there is EU GDP and the US jobs data. If you managed to get your hands on Cape Town 7's tickets, enjoy! Go Blitz Bokke.

Original post

How, Why, Huawei, Accused of Violating US Sanctions
 

Related Articles

How, Why, Huawei, Accused of Violating US Sanctions

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email