Market Round Up: Beer on tap, Old lady ups her rates, Trillion dollar baby

by | 3 Aug, 2018

 

1. Beers on me? Don’t be a dope

Being International Beer Day, we thought it fitting to tap into the business of beer. With summer parties and holidays you would think breweries would be jumping for joy. But it seems they won’t be cracking open many barrels today.

It all comes down to taste and fashions. People just don’t go to a bar and order a beer anymore. Instead, drinkers are asking for more spirits, wines or cocktails. So now the big brewers are seeking new opportunities for growth. For instance, Heineken is taking a big slice in a Guandong brewery to infiltrate the Chinese market, the U.S. second biggest brewery, Molson Coors, is contemplating a move into the (legitimate) marijuana industry – last year Corona brewer, Constellation Brands, invested in Canadian cannabis company Canopy Growth. So there’s obviously something in mixing beer and dope.

There is no doubt the big brewing companies need to set their minds on future trends. Meanwhile, it would seem the only beer left on tap comes from micro breweries. Perhaps the big guys need to go back to basics and learn how to put some good flavour back in the bottle.

 

2. Trillion dollar baby

So Apple beat the other FAANGs to become the first company valued at $1 trillion. So what? Who cares? Well, actually, having a giant market valuation will help the business in many ways.

Having a good track record in the stock market helps a company further strengthen its reputation and brand name. This can have a direct positive impact on sales, ability to raise capital for expansion and hiring from the best talent pools. In other words, Apple’s reputation will continue to strengthen. But beware. After hubris comes nemesis. To a lot of people there’s nothing sweeter than seeing a giant cut to size. That may not happen for a while. But don’t doubt that in years to come people will be asking which will be the first zillion dollar company. Or even quadrillion dollar company. The question is, will Apple still be in the running or will it be a minnow against the future giants from China?

By the way, since you asked, Amazon’s latest valuation sits around $866 billion and Google’s Alphabet slightly lower at $843 billion.

 

3. Old Lady ups her rates

The Bank of England, aka the Old Lady of Threadneedle Street, did as expected and hiked rates yesterday to the “highest” level since 2009. While true tautologically, rates at 0.75% are still very close to among the lowest in the world. The bank signalled that further hikes will be gradual, and largely Brexit-dependant.

Premised on the UK avoiding a hard-Brexit, market expectations are that the BoE will pick up the pace of rate hikes to maybe two per year with the next hike marked for May 2019. Of course, what the hike also does is give some leg room in the event of a negative shock due to Brexit. It could well be that 2019 brings with it a round of BoE easing in the event that Brexit pressures become more growth negative.

Related:  Market Round Up: U.S. shoppers, Brexit hard or soft, China housing

Want to learn more about the markets and how to become a better investor?

Download the Invstr App now.

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This