Venezuelan Sanctions Heat Up 🔥 Tesla In The Spotlight 👀

by | 26 Feb, 2019

1. Venezuelan Sanctions Heat Up

It’s out of the frying pan and into the fire for Venezuela’s active President, Maduro, who has just been slapped with a fresh set of sanctions after domestic security forces used violence to block US humanitarian aid from entering the country. Yikes!

Four of Venezuela’s top brass have been targeted with sanctions in the latest attempt to squeeze Maduro to resign in favour of opposition leader, Juan Guaido.

The US, Canada and a number of nations have banded together against the violence displayed by Maduro’s Chinese and Russian-backed armed forces which left at least three dead and over 300 wounded. While the US has not taken a military response off the table, regional partners Brazil, Peru and Chile are committed to resolve the crisis diplomatically…for now.

However, China and Russia’s vested interest in Maduro makes the situation slightly more complicated. Even though they are yet to offer physical support to Maduro, the possibility of the conflict becoming a proxy war of attrition still remains a scary prospect.

For now, the big guns have yet to clash, but the longer the crisis persists, the deeper the economic damage to Venezuela’s broken economy will be. Guaido will have a hard task ahead of him to reconstruct the nation’s energy-based economy and global supply chain, but with the right reforms the nation could come back in better shape in a matter of years. Only time will tell!

2. Tesla In The Spotlight

So Mr. Musk is in trouble with the Securities Exchange Commission (SEC) for his twitter activity yet again. What else is new?

Musk’s previous run in with the SEC left him banned from mentioning any information that may have a bearing on Tesla’s share price without explicit approval. His latest tweet mentioned the production of 500,000 vehicles in 2019, which has been viewed as a clear violation of the settlement which cost him and Tesla a whopping $20 million each (pocket change for Mr. Musk).

Importantly for the markets, Musk was allowed to stay on as Tesla’s CEO as his leadership was deemed synonymous with the brand. However, his latest antics have put his position at the helm of Tesla in jeopardy once again, and investors are not pleased about it!

Tesla dropped 5% during yesterday’s extended session, breaking below a key support level at $295. Losing Musk as CEO would cause untold damage to the company and long term investors in Tesla are beginning to get frustrated with his expensive social media outbursts.

Negative developments in the proceedings will weigh heavily on Tesla’s share price in the near term, But a positive end result could see the company revisit the $300+ territory again without too much trouble. Now we play the waiting game…

Today we are watching…

1. Home Depot (#homdep)

After Walmart’s bumper earnings announcement, analysts will be paying close attention to the likes of Home Depot, Lowe’s and Macy’s to see if they can all hold the trend against the encroachment of rival, Amazon. The company has performed well since the start of the year and lies approximately 11% below its previous high, which may look to some like a good opportunity for a bit of upside to come. However, some analysts have been revising their earnings estimates lower in the run up to today, which leaves us with a mixed picture of today’s earnings call. The consensus EPS estimate is $2.16 (+27.8%) on revenue of $26.56bn (+11.2%).

2. Sempra Energy (#sempr)

Sempra is looking in top shape ahead of its earnings announcement today, thanks to favourable weather conditions and a number of smart acquisitions and divestures. The company experienced higher demand for its services and completed $1.6bn worth of sales for its solar and battery storage assets which will likely show up on its cash flow statement ahead of today’s report. Analysts are expecting Sempra to post solid results today. So keep an eye on this one!

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Oil's Slick Upward Move

Technocratic officialdom just declared UBS, Zurich Insurance, Nestle, and in fact, the entire Swiss stock exchange, 'off-limits.' They've done what, now?

Once upon a time, a complex myriad of red tape allowed Swiss stocks to be traded across the European Union (EU). Brussels said enough's enough to that and decided to craft one deal to rule them all. While that was being drafted, a Swiss subplot started to boil. Elections, euro-skepticism, and trade unionists became a focal point, and the EU's immovable deal hit a Switzerland's unstoppable sentiment. The treaty crumpled.

In short, the EU just sent the bloc's fourth-largest exchange packing. The SIX, valued at $1.7 trillion with Nestle and Novartis on its register, is out it's own bounds. We can't invest in it anymore!

It's hard to tell who has this worst. For a start, Swiss companies may be forced to other stock exchanges outside Switzerland. A few already have. Investors still with access could end up paying more for shares as, with a European third of orders gone, brokers recoup money by setting higher asking prices. And the officials behind all this? Truly at each other's throats. 

Within the political mire, many hoped both sides could iron out their differences and keep the "equivalence" agreement going. Nope. Switzerland is furious with the EU for what it sees as a flex of power in front of Britain, still in its Brexit muddle. Creating a theatre, it sounds like Brussels is shouting 'don't mess with us!' in the direction of the UK, now teetering closer to a no-deal cliff edge. As Brussels endures its own leadership merry-go-round, Downing Street doesn’t even know to whom it should address its strongly worded letters…

All this couldn't happen to British stocks, could it? Could it?!

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The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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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 of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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