US Business News

What a Stronger Dollar Means to Several Stakeholders in the United States

Photo Credit:  Onur Coban

The U.S. dollar is getting stronger at the moment, signaling its strongest within two decades. The sudden surge in the value of the American currency has sent waves of both delight and concern to many local, national, and international players.

The American economy is suffering an economic downturn, prompting the Feds to increase interest rates. However, that is not stopping the dollar from getting higher in value. This phenomenon inevitably creates winners and losers within economies across the world.

On Monday, the British pound became weaker than the dollar, its record low. Meanwhile, the newly-installed Prime Minister Liz Truss announced tax cuts and suspension of corporate taxes to bolster economic growth in the U.K. economy. The United Kingdom is currently pressured to keep up with the growing concerns among Brittons because of the energy crisis brought by the supply cuts made by Russia.

The current relationship between the dollar and pound alarmed the Central Bank of the U.K., as it is only now that the British pound has become so weak that its value nears the U.S. dollar. The governor of the Bank of England, Governor Andrew Bailey, said that authorities are closely monitoring the situation.

The rise of the dollar is a double-edged sword, providing opportunities to many and creating a crisis on the other hand. The phenomenon is likened to the job market, where the rise in the unemployment rate means job opportunities for others but labor shortage for the rest.

The dollar and its strengthening are ushered by several political factors, most notably the war between Ukraine and Russia. This is because companies, investors, and countries put their reserves in dollars whenever crises occur in particular regions of the globe.

Read Also: Electric Vehicle Sales Top Expectations, IEA says it Could Hit an All-Time High

Who benefits from this

Importers in the United States

Since the dollar has a higher value than the currency abroad, buying goods and raw materials outside the country means lower company costs.

“For importers, it’s a positive story. For anyone importing from the likes of China, importing raw metals and energy from abroad, that’s going to be positive for you — as long as it’s not priced in dollars, of course,” said Jordan Rochester, a senior foreign strategist from Nomura Securities.

 

Travelers in the country

Since the dollar and the euro are already at par with each other in terms of value, it would mean that travelers from the U.S. can get a better and cheaper hotel and accommodation deals. When they travel to Europe and other nearby areas, using the dollar might mean cheaper expenses on their side.

Read Also: UK Government to Cut Taxes from Corporations, Entities to Brace for Recession

Who does not benefit

Multinationals

Multinational companies in the United States are now seeing the grave effects of strengthening dollar value. In a recent survey, company executives of multinational companies report that this hurts their profits.

For instance, Salesforce, a San Francisco-based company, sells its softwares to various countries using different currencies. In the company’s recent financial statement, CEO Marc Benioff said that the increased dollar value would cost the company over $800 million.

Meanwhile, Michael Klein, a professor from Tufts University, said that a reduction of value might happen, especially when companies like Salesforce sell their products in a different currency and then injected them into American accounts.

“Repatriated profits from abroad, in euros or pounds or yen, are going to be worth less in dollars because a dollar is stronger,” he said.

 

U.S. Exporters

As the condition becomes better for importers, it is the other way around for exporters. Buyers from other countries will be demotivated to purchase goods coming from the United States since a higher dollar value means they will be more expensive on the supermarket shelves.

Source: NPR

Wendy’s stocks surged following Trian Partners announcement to secure deals with the company

Image Source: Restaurant Clicks

Wendy’s is seeing a 15% surge in its stocks after Trian, the largest stakeholder of the company, announced possible future deals with them.

Billion-dollar investment firm Trian Partners filed a hedge fund for Wendy’s, saying it aims to “enhance shareholder value.” The firm holds about a 19% stake in Wendy’s restaurant chain.

In a statement, the firm said they were able to gather advisors together with Wendy’s higher-ups so they could discuss possible strategies and options.

Management at Wendy’s has announced that they are open to any proposal since their goal is to “maximize value for all stockholders.” They further state the board will carefully assess Trian’s pitches and strategic options.

“At that time, Wendy’s was one of America’s most beloved brands, but the business had lost its way after the passing of its founder Dave Thomas,” said the firm recalling how they purchase shares from the company. CEO and founder Nelson Peltz assumed bought the shares in 2005.

Currently, Peltz owns one seat on the board out of three that Trian Partners own.

Wendy’s has over 7,000 locations across the United States. During the first quarter this year, they had increased sales by 2.4%. The company has also declared a net income of $37.4 million, or roughly 16 cents per share). The recorded quarterly revenue is down by 10% less when compared to last year’s figure of $41.4 million.

Trian continues to help the fast-food chain develop its brand. According to Titan, Wendy’s should continue to improve its operations and solidify its brand among consumers.

Over the years, the company has tried to come up with a different menu to provide variety to its customers, including launching its own breakfast menu in March of 2020. However, the plan of the company to overtake fast-food giants like McDonald’s and Burger King was put to a halt after the COVID-19 pandemic.

With the recent lockdown restrictions by the US government, Wendy’s has been experiencing a decrease in sales like any other company across the country.

Despite a myriad of challenges, Wendy’s continued to cater to their customers, and now that the market has reopened, the possibilities are now opening for the company as well – one such is the recent announcement by their shareholder, Trian Partners.

While inflation rates continue to go up, BMO Capital Markets downgraded Wendy’s market stocks, lowering the price target from $28 to $22. Following the announcement by BMO, Wendy’s saw a 2.5% drop in its stocks.

The management at Wendy’s is hopeful that with the new development, they will be able to address some losses. However, it has not yet been announced how this fund might help them out in their current situation.

Stock Predictions of TESLA

The surge of coronavirus brought turmoil in the stock market. Tesla rallied around 500% in the first eight months of 2020 but plunged about 30% in the early nine days of September.

 

Should You Buy Tesla (TSLA) Shares?

Tesla’s stock bulls generally claim that the company dominates the emerging global electric vehicle market and that comparing the stock and its valuation with traditional auto stocks is irrelevant. At the same time, Tesla Bears often point out that the stock’s valuation is too high, even when compared to fast-growing technology stocks, and Tesla will face an unprecedented wave of new competition over the next two years.

Doug Kass, chairman of hedge fund Seabreeze Partners Management, says he has opposed a short position in Tesla for years. However, with inventories surging more than 800% in the past 52 weeks, Kass says he could no longer sit on the sidelines. Kass finally pulled the trigger by exposing Tesla stock at the end of August for $ 2,014 in late August, representing a post-split price of around $ 403.

“It can now be argued that not only does Tesla’s stock represent a good short term, but at current prices, the stock could represent the largest single bubble – measured by a market cap of nearly $ 400 billion. – history,” Kass said.

But Tesla’s valuation is just one of several concerns he has about stocks.

 

Tesla’s Unproven Model

Tesla made another profit in the second quarter of 2020, but short-sellers like Kass are taking exception to how Tesla is generating income. Tesla reported a net income of $ 104 million for the quarter based on generally accepted accounting principles or GAAP. However, it also reported $ 428 million in regulatory credit sales in the quarter.

Tesla collects these legal credits to sell electric vehicles and sells many of these credits to other car manufacturers. These traditional automakers need the credits to avoid legal fines until they release their EV models. For now, Tesla can sell these credits for a 100% profit, but analysts say Tesla’s window of regulated credit sales window is closing.

Kass says that without regulatory credit sales, car sales are unprofitable.

“Adjusted for the sale of emission credits, Tesla has never been profitable in its 17 years of existence,” despite having no competition and no need for advertising, Kass says.

He is skeptical of Tesla’s valuation until it can prove that its automotive business can be significantly and consistently profitable.

 

Competition Is Tight

Another red flag for Tesla is that the company will face its first real wave of competition in electric vehicles in the next couple of years. In the first half of 2020, Tesla represented around 80% of the United States. Sales of electric cars, according to Loup Ventures. However, only 16 EV models are available in the United States, including five Tesla. By the end of 2021, competitors are expected to introduce another 20 EV models to challenge Tesla’s market share.

Kass says the first batch of new competitors comes from fresh, highly rated models from Polestar, Audi, and Volkswagen (VLKAF). Tesla was the first company to capture the electric vehicle market. But Kass says Tesla has a shallow competitive divide and no significant proprietary EV technology to set it apart from its competition, many of whom have a century of experience manufacturing and high-end marketing cars.

 

Priced for Perfection

Finally, Kass and many other Tesla short sellers are questioning of the stock’s valuation. Even after selling off nearly 30% in September from recent highs, Tesla stock is trading at an expected earnings multiple of 121 and a price-to-sell ratio of around 13.8. This valuation represents a substantial premium over former auto stocks Ford Motor Co. (F), General Motors Co. (GM), and Toyota Motor Corp. (TM), which on average, have a prepaid profit multiple of 10.3 and a price/sales ratio of 0.51.

“Faced with an onslaught of competition, Tesla’s market capitalization is now almost four times that of Ford, General Motors and Fiat Chrysler (FCAU) combined – despite selling only about (400,000) cars per year, against 17 million in sales for the big three units,” Kass says.

Tesla’s earnings fell nearly 5% in the last quarter, but many Tesla bulls say the automaker looks more like a high-growth technology stock than a car company. Unfortunately, valuation comparisons with large-cap tech stocks Apple (AAPL), Amazon (AMZN), and Microsoft Corp. (MSFT) is still considered overvalued. Tesla’s predicted earnings multiple is more than double the average of these technology giants, and the price-to-sell ratio is more than 50% higher.

While there is no doubt that Tesla has shaken up the global auto industry, its spiking share price has already resulted in significant long-term success. Tesla bears like Kass are skeptical that the company will ever be able to meet, let alone exceed, these sky-high expectations.

Why September Is Considered the “Ghost Month” for the Stock Market

Photo by Ishant Mishra on Unsplash

Stocks followed a winning streak in August, with experts saying that it has been one of the strongest months of the year. But investors are growing wary as September enters, historically dubbed as the worst month for stocks. Although the market went up slightly on Wednesday, the S&P 500 has fallen about 0.5% on average in September, according to Ryan Detrick, chief market strategist for LPL Financial. However, despite its track record, many are still hopeful that this September will be different as stocks have already risen significantly throughout the year.

September is arguably the worst month for investors to bet their money on the stock market. Since 1928, the month has generated an average stock market return of roughly -0.1% with a win-ratio of only 46%, comparatively lower than any other month of the year. Unfortunately, the last two decades have not given September a chance at redemption too.

While investors are more likely to be extra careful over the next four weeks, Funsdtrat released data showing strong equity returns in September made possible when markets experience a strong first half of the year. In the first six months of 2021, the S&P 500 increased more than 15% than it did in the past year, but the truth to Fundtsrat’s prediction is yet to be known.

Liz Ann Sonders, Chief Investment Strategist of Charles Schwab, said that anything could happen in September. The stock market is continually growing along with society, and Sonders stated that it’s “simplistic” to assume 2021’s September will follow history. “Are there a myriad of risks out there that at some point in time could be a risk factor that could lead to more than a 3% or 4% pullback? Absolutely. Could it be in September? Sure.”

Seasoned investors would agree that buying and selling stocks based on the month on the calendar is not necessarily one of the soundest decisions one can make when dealing with the stock market. Even some of the most seasoned investors who have been in the game for decades of their life would testify that stocks are still likely to get hit regardless of the month they are in. An important idea to note, though, is how investors should bounce back from the “tough months” to suffer as small of a loss as possible.

With the momentum provided by the first half of 2021, investors remain optimistic that this year’s September will reap a different result. The S&P has undergone over 15 winning streaks since 1945, all thanks to the rapid and fruitful performances of the first six months of the year.

Ryan Detrick, Chief Market Strategist of LPL, recently said, “We remain in the camp that stocks will continue to go higher, and investors should use any weakness as an opportunity to add to core equity holdings.

September, being a down month, could also have its upside. Experts at LPL are suggesting the people use the month to “dip and buy” stocks and expect to see returns because, according to LPL, “this bull market is alive and well.”

Ecovocado, the Ecologically Healthy Alternative of Avocado

Photo Credit: Arina Shokouhi

Avocado has become one of the most traded foods in the world today and is more commonly known on the international market as “green gold.” Due to the many uses of its constituent parts, it has grown in popularity. Over eleven billion pounds of avocados are purchased annually by consumers, according to the World Economic Forum.

This is a reliable sign that the avocado business is booming. However, while the market for avocados is booming, the environment is suffering. This is one drawback of cultivating avocados. Growers must use a minimum of 2,000 liters of water to produce one kilogram of avocados. In parallel, businesses must remove forests as demand rises to create room for avocado farms. These two reasons have persuaded a London researcher to develop a novel strategy for reducing the requirement to grow avocados.

Researcher and designer Arina Shokouhi created an eco-friendly avocado. By introducing her novel product, which she named the “Ecovocado,” Shokouhi seeks to persuade customers to purchase fewer “actual avocadoes” in the market, taking into account their production’s damaging effects on the environment.

“It can be actually a positive solution, and we should just embrace it because we know that we can’t carry on living like this,” stated Shokouhi.

What is the Ecovocado

At first sight, consumers have difficulty telling the Ecovocado from a genuine avocado. Beeswax and natural food coloring created from spinach and charcoal powders are used to produce the product, which resembles the appearance of avocado skin.

In order to closely resemble the flavor and appearance of an authentic avocado, the meat for the Ecovocado is carefully chosen. The Ecovocado meat is made up of wide beans, apples, cold-pressed rapeseed oil, and a hazelnut garnish claims the product’s manufacturer. Shokouhi utilized a whole hazelnut or chestnut as the pit.

The end result of Shokouhi’s Material Futures master’s degree program at Central Saint Martins is the product. At the University of Nottingham, she worked with Jack Wallman, a food scientist. After researching the molecular characteristics of avocados, Wallman accompanied Shokouhi in completing the Ecovocado. The procedure, according to the researchers, was laborious and took them close to eight months to accomplish.

“(The) choice of ingredients was very limited, to begin with, because I want it to be 100% local. That was my first priority,” Shokouhi added.

In earlier recipes, ingredients like broccoli and garden peas were taken into account. However, she had to dismiss it because the ingredients did not taste good. The idea came from Shokouhi’s desire to employ primarily locally produced goods in his recipes. Broad beans were chosen as their crop because they are simple to grow and are produced in large quantities in the UK each year (740,000 metric tons are harvested.

The outcome had a harsh flavor at first. However, balancing the ingredients required some time. According to Wallman and Shokouhi, coming up with the ideal avocado replacement is hard.

Ecovocado might not be a practical substitute

Ecovocado is a very innovative product. Others in the profession, nevertheless, perceive the product as having drawbacks. For example, Dr. Wayne Martindale, an associate professor of food insights and sustainability at the University of Lincoln in the United Kingdom, believes that the Ecovocado may not be a practical substitute for an avocado.

The qualities of natural avocado byproducts that can be utilized to make cutlery, lubricants, and other important items are taken into consideration by Dr. Martindale. Additionally, he stated that authorities’ moderation should be the main emphasis of the environmental concern surrounding the avocado trade rather than the production method.

Shokouhi prays that people will still think about Ecovocado despite this.

“The taste maybe is not 100% exactly like avocado, but that doesn’t matter as an alternative as long as you can have it on your sourdough, and it tastes good, and it looks the same, and it’s healthy,” said Shokouhi.

Source: CNN

Scorching Heat in China Force Cities to Temporarily Close Down Facilities

Photo Credit: Aly Song/Reuters

To alleviate the power crisis it is now facing amid a heat wave that has been wreaking havoc on the nation for several weeks, the Sichuan province in China ordered its factories to cease operations and close the facilities for six days.

Production is expected to suffer serious harm as a result of the alert. Tens of solar panel and semiconductor enterprises are located in the Sichuan province of China, a significant manufacturing region. In addition, some of the largest technology businesses in the world, like Intel and Foxconn, an Apple supplier, are served by the local power grids.

Analysts also predicted that given the province is the nation’s center for lithium mining, the price of raw materials for automobile batteries will skyrocket in the coming days. When making batteries for electric vehicles, lithium is a crucial component.

More problems for the country

The present heat waves impacting most of China are the worst that the nation has experienced in more than 60 years. In various cities around the nation, temperatures were recorded that were higher than 40 degrees Celsius, or 104 degrees Fahrenheit. As a result, there was a noticeable rise in demand for air conditioning in homes and workplaces. The increase in demand leads to power systems being under more strain to meet consumer demand.

The country is currently experiencing a drought, which exacerbates the impact of the heat wave. The phenomenon has reduced the water levels in China’s rivers, which has a detrimental impact on how much energy hydropower facilities can generate.

The provincial administration and state grid of Sichuan province issued an urgent notification instructing 19 of its 21 cities to stop all factory production on Monday. The choice should guarantee that the meager power generated by energy providers would be adequate to meet the needs of the province’s 84 million residents.

Read Also: A Megaflood Could Soon Hit California, Damage to Businesses, Properties Unlike Anything Seen Before

The hottest on record in 60 years

Since last month, the heat and drought have hit numerous areas of the province. For instance, the southwestern region of the province has been severely impacted, resulting in lower power generation from its hydroelectric units. In addition, the region is reportedly experiencing a trend that is the most extreme it has seen in 60 years, and the average rainfall has decreased by 51% compared to past statistics.

A Sichuan city, Luzhou, has declared that it will turn down its city street lights at night to preserve energy and help electrical grids regain capacity.

“Continued high temperature has accelerated glacial melting in mountainous areas and caused natural disasters such as flash floods, mudslides, and landslides in many places,” said a chief expert at the Xinjiang Meteorological Observatory, Chen Chunyan.

Other industries are affected

Sichuan is a center for extracting significant minerals used in the electronics and solar photovoltaic industries in addition to electricity. Texas Instrument, Intel, Onsemi, Foxconn, and other global semiconductor firms operate factories in Sichuan. The province also houses a facility owned by Tesla supplier CATL.

A number of Chinese businesses are concerned about the power reduction Sichuan’s provincial government imposed. The executives claimed the cut would jeopardize their products’ ability to be made. For instance, Sichuan Lutianhua and Sichuan Haowu Electromechanical both impressed the authorities with potential losses they could experience if the cuts and suspension lasted for a protracted period.

Now, other provinces are also advising their citizens to practice energy efficiency. If the dry spell lasts all summer, the provinces of Anhui, Zhejiang, and Jiangsu have all warned their populations to be ready for potential outages and shortages. To save energy, many offices instructed staff to turn up the temperatures of the air conditioning in their offices.

Read Also: Taiwan Expresses Gratitude to US After Second Visit, China Warns of Possible Retaliation

Inflation may worsen as effects of the decision

“Affected by the continuous high temperature in many places, the price of fresh vegetables rose by 12.9% year-on-year, which was significantly higher than the same period in previous years,” stated Fu Linghui, the National Bureau Statistic spokesperson.

“August and September are the key periods for the formation of autumn grain production. [We must] pay close attention to the impact of natural disaster, insects and disease on our country’s food production,” added Linghui.

Source: CNN

Farmers See Massive Loss in Production and Income Amid Worsening Drought

Photo Credits: Jerod Foster | The Texas Tribune

In a new American Farm Bureau Federation survey, three-quarters of US farmers said that the worsening drought has unequivocally damaged their crops, leading to a massive loss in their harvest and income.

According to the farmers surveyed by the bureau, this year’s drought is more intense than last year. Nearly 37% of the farmers said they are now killing the crops that the heat has damaged since they will no longer reach maturity. Compared to last year’s data, the number of farmers doing this activity jumped by 24%.

The heat in July was recorded to be the third hottest period in the history of the US. It has also broken records in every state, ranking top 10 in all the Western states excluding Montana, reported the National Centers for Environmental Information. Meanwhile, the US Department of Agriculture reported that during the first week of August, “rapidly intensifying drought gripped the central and southern Plains and mid-South, depleting topsoil moisture and significantly stressing rangeland, pastures, and various summer crops.”

In the report by the AFBF, 60% of the West, South, and Central Plains are currently seeing severe droughts this year and may even intensify if the current trend persists.

“The effects of this drought will be felt for years to come, not just by farmers and ranchers but also by consumers. Many farmers have had to make the devastating decision to sell off livestock they have spent years raising or destroy orchard trees that have grown for decades,” said the president of AFBF, Zippy Duvall.

The survey conducted by the bureau included 15 states from June 8 to July 20, covering the drought-affected areas of Texas to North Dakota to California. These areas produce almost half of the US agricultural production.

Half of the Californian farmers said that they removed several trees and an ample variant of other crops because of the drought. This decision will ultimately impact the region’s production, causing supply shortages and revenue reduction. California is a state that largely contributes to the supply of fruits and nut tree crops to the US market.

Thirty-three percent of all farmers surveyed in the US are also doing the same; this number has almost doubled compared to last year.

Read Also: A Megaflood Could Soon Hit California, Damage to Businesses, Properties Unlike Anything Seen Before

 

Water problem for the farmers

As the drought continued, water reserves became nil in several areas. As a result, many Texan farmers had no choice but to sell their cattle herds earlier. According to the farmers, the conditions forced them to do it because they could no longer efficiently raise their herds due to low water supply and lessened grass numbers, which have mostly dried up due to the heat.

“We haven’t had this kind of movement of cows to market in a decade, since 2011, which was our last really big drought,” David Anderson, an Agricultural Economics professor at Texas A&M, told reporters.

Other states also reported the same, with Lone Star state recording the largest herd size decline by 50%. New Mexico followed it at 43%, and Oregon at 41%. Local authorities restrictions on water use have also worsened the conditions, with 57% reporting it as the main problem, up by 7% from last year.

The AFBF said that Lake Mead and Lake Powell used to supply water to over 5.5 million acres of land to states in the West. However, with a 30% decline in the lakes’ water levels, farmers have had a hard time finding other water sources.

Read Also: Ecovocado, the Ecologically Healthy Alternative of Avocado

 

What consumers have to expect

With this, consumers have to expect higher prices of goods in the coming months.

“For cattle and beef, once the market processes the excess animals sent to slaughter and has a smaller breeding herd to operate off of- [price increases] could be six months to well over a year. For specialty crops it could be immediate upon harvest,” said an economist at the AFBF.

“[This] will likely result in American consumers paying more for these goods and either partially relying on foreign supplies or shrinking the diversity of items they buy at the store.”

Source: CNN

Market Trade Restrictions Imposed by China to Taiwan is More Political than Economic, says Experts

Photo Credit: Jerome Favre

According to experts, Beijing’s trade restrictions on Taiwan are more of a political than an economic decision.

Following Nancy Pelosi’s travel to Taiwan, China made it obvious that they disagreed with the American politicians’ choice. Pelosi nonetheless entered Taiwan despite earlier warnings from the Chinese authorities, to the pleasure of some and worry of others.

China swiftly responded by conducting increased military drills close to Taiwan’s territorial waters. Following this event, a lot of observers predict that Taiwan will suffer more from China’s retaliation than the US.

China then decided to place economic pressure on Taiwan by halting imports of frozen fish, confections, biscuits, and citrus. Beijing has also prohibited Taiwan’s natural sand exports as a result of the island nation’s defiance of the superpower.

China asserts its ownership of the tiny island, despite Taiwan’s declaration that it is an independent, self-governing, democratic nation. This assertion is what prompted the Chinese government to respond to Pelosi’s visit because, in their view, Taiwan should not establish any diplomatic ties without their consent.

Read Also: FDA Announced Children Could Now be Administered Monkeypox Vaccine, to Expand Shots Through Intradermal Injection

Trade restrictions imposed by the Chinese government

The Taiwanese Trade Bureau reported that the value of Taiwan-China exports reached $113 billion last year, while imports from China totaled $82 million. These numbers don’t include re-imports or re-exports.

The majority of the amount stated by the commerce bureau is made up of electrical machinery and technology components. Despite being the largest, China did not focus on these industries. It is anticipated that Taiwan imports electrical and technological equipment for $82 billion, while these products account for 65% of the nation’s entire export value. In conclusion, Taiwan benefits financially from these products.

Targeted trade areas are only a small fraction

When compared to other sectors that make up the majority of Taiwan’s export and import business, the trade areas Beijing is targeting are minor.

Analysts claim that natural sand accounts for a minor portion of China’s total exports, yet the country has chosen to ban its exports. The trading area had a value of around $3.5 million, according to all the Taiwanese Trade Bureau data. The value is a “drop in the ocean” when weighed against Australia’s and Vietnam’s natural sand exports.

The citrus trade, which just achieved a valuation of $10 million last year, has also been subject to limitations by Chinese officials.

“It’s already had restrictions on Chinese visitors to Taiwan in place for a few years, which carry more economic significance; the agricultural products now in the headlines are only a fraction of Taiwan’s export basket. And so, the headline impact on Taiwan won’t really be noticeable,” Nick Marro from the Economist Intelligence Unit said.

Other trade restrictions put in place by China cover the export of frozen fish, particularly large head hairtail and horse mackerel, which were valued at $50 million and $3 million, respectively, last year. Exports of bread, cakes, biscuits, and pastries were banned as well.

“China’s economic retaliation against Taiwan is a long-standing strategy in its diplomatic playbook. That said, its decision to target relatively low-value trade items reflects the limits of its economic pressure toolbox,” Marro added.

Read Also: Social Media Companies Unveil Parental Control Features Following Pressures From Congress

Restrictions may pose other effects on global trade

Many experts feel that China’s retaliation against Taiwan can hurt global commerce, even though the value of the restricted trade sectors only represents a small portion of Taiwan’s whole trading industry.

“China’s economic retaliation against Taiwan is a long-standing strategy in its diplomatic playbook. That said, its decision to target relatively low-value trade items reflects the limits of its economic pressure toolbox,” said Marro.

“It’s not just a story for Taiwan and China, but also for their neighbors, as well.”

According to Container xChange, a logistics platform, China’s military drills may slow down the flow of shipments along the waters between China and Taiwan as businesses start the shipping season.

Source: CNBC

Entrepreneur Eddie Sitt Aims to Address Dry Eyes Through His Revolutionary Mask Treatment

A plethora of reasons may serve as an individual’s primary source of motivation to rise above and defy odds. While some people draw inspiration from fueling their creative drive, a significant number of individuals and entities find strength in causes larger than themselves. As someone who has vicariously experienced multiple inconveniences in treating dry eyes through the plight of his wife, Eddie Sitt has made it his mission to find a solution that is not only brilliant but also revolutionary. Rising through the ranks, this power player is bound to take the industry by storm.

When his wife was looking for treatments for her dry eyes, she was only offered one solution: the microwave mask approach. The treatment was simple – the patient only needed to put a mask in the microwave in order to be heated and, after 30 seconds, place the mask on the eyes. Unfortunately, although this seemed like a simple two-step treatment, it lacked the ability to adjust the temperature, SUSTAIN IT, and maximize comfort. Aiming to address this gap, entrepreneur Eddie Sitt creates the Dry Eye Mask to serve as a long-term solution for those who have continued to suffer the grueling process of treating this unfortunate condition.

On a mission to address an ongoing problem, Eddie Sitt creates the Dry Eye Mask through an all-out approach. It is made with all-natural solutions that promote convenience and efficiency, making the treatment of dry eyes easy and comfortable for patients from all walks of life. On top of that, the mask gives individuals the option to adjust the temperature. In this way, it will not be too hot or cold for those using the product. 

“The Dry Eye Mask is the gold standard in treating dry eye. It is the only efficient and streamlined solution in the market,” shared Eddie.

Aside from comfort and ease, the Dry Eye Mask is a product of science guaranteed to treat dry eyes. It uses electric energy to heat up the individual’s eyelids enabling glands to enhance the NATURAL oil production needed to prevent the evaporation of the eye’s tear film. “By applying consistent heat to these glands for an ideal time of TEN minutes, oil will be released into the eye,” explained Eddie. When the eyelids feel warm, the oil becomes more lucid, effectively preventing dry and uncomfortable eyes.

Today, Eddie Sitt seeks to make the Dry Eye Mask available to the market, so he is selling directly to doctors across the realms of healthcare. In addition, this power player also sells the masks to women over the age of 50, as this particular demographic has been widely known to suffer from this condition.

As an entrepreneur whose vision is more than catering to the needs of his wife, Eddie Sitt aims to go global with his product. This power player seeks to establish solutions that help people from all walks of life, particularly in living comfortably. It is then clear that the creation of the Dry Eye Mask is only the beginning of his journey to revolutionize industries and impact the lives of many across the globe.

Dow and S&P Breaching Stock Market Barriers as Valuation Continues to Climb

Photo by Yiorgos Ntrahas on Unsplash

US stock market traders and investors are experiencing a gold rush as many stocks in the US market continue to hit new barriers. Overall, the Dow Jones and S&P 500 continue to hit historic highs as the US economy experiences a great revival, with many reports of bank earnings on high and more companies reaching significant milestones in the third quarter of 2021.

The three major stock indexes, namely the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, closed on new record highs on the first trading day of the week, Monday, as Wall Street continued on its bullish rally following economic growth prospects and predictions. However, this week, players in the stock market can expect more volatility as big bank earnings reports start on Tuesday, along with crucial inflation data.

One of the biggest winners currently is the Dow Jones market, which includes thirty blue-chip corporations, including Disney, Goldman Sachs, IBM, Coca-Cola, and many more. Last Monday, July 12, 2021, the Dow closed with a 126-point jump, recording a 0.4% end-of-day increase to 34,996, adding to the previous Friday’s all-time high. To date, the index has now pushed up to a gain of 16% this 2021 alone. One of the significant pushes to the index was the release of Disney and Marvel’s latest pandemic streaming film launch, Black Widow, which hit a movie-theater earnings pot of  $80 million and streaming earnings of $60 million throughout the weekend.

On top of the Dow growth, the S&P 500 also jumped to record highs as it added another 0.4% to 4,385 points. Leading the surge were the reported earnings of big banks Morgan Stanley, Goldman Sachs, and JP Morgan, who posted stock gains of 3%, 2.5% and 2%, respectively. The benchmark index has now notched three straight weeks of progress as it has hit new highs despite experiencing chopping trading in the past few weeks.

Nasdaq’s tech-heavy index has also increased by 0.2% and has now also reached up to 16% growth in 2021 alone. S&P 500 has also been on a mid-term uptrend after collectively growing by 18.5% in 2021 to date.

Traders and investors will remember the short-lived drop in the market as the world fell to the COVID-19 pandemic early in 2020. Then, the nation hit economic crunches as many businesses closed and employees lost their jobs due to mandated lockdowns and border closures. Still, the stock market would recover well towards the latter part of 2020. The government would then put measures to reverse the recessive trend, and stocks of corporations that pivoted and thrived during the crisis pushed the stock market upward.

As more earnings reports come out for the remainder of the year, stock market trading experts expect favorable increases. “We ran out of superlatives to describe corporate America’s stunning performance during first-quarter earnings season,” shares one leading Wall Street player, LPL Financial, in a note released on Monday after citing profits that exceeded their initial targets.

More members of Wall Street remain optimistic as more of the economy opens up following increased vaccination efforts across the country and the rest of the world.