China tells state banks to prepare for a massive dollar dump and yuan buying spree (2 min read)
China has told state banks to prepare to sell the dollar and buy the yuan in an attempt to stop the currency from dropping further. Offshore branches including those in Hong Kong, London, and New York were also ordered to have the dollar reserves ready. The yuan has fallen 11% against the dollar this year and is on track for its worst annual decline since 1994. Unlike the Fed and other central banks, China has been easing the rates instead of raising them in an effort to bring growth in the economy that’s been dragged down by Covid lockdowns.
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Why Peloton Stock Plunged Today (2 min read)
Peloton is partnering with Dick’s Sporting Goods and said their bikes will be available across 100 store locations. The company has historically only sold directly to consumers which makes this their first brick-and-mortar partnership. While it is great to increase physical retail presence, Peloton already has a negative-profit margin on its products this year. With Dick’s Sporting Goods taking a cut from this partnership, their profit margins will likely depress further. This may be a possibility why shares of Peloton plunged over 14% after the news.
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Porsche shares rise in landmark Frankfurt debut (2 min read)
Shares of Porsche rose on its market debut on Thursday and valued the company at roughly 75 billion euro. It is one of the largest IPO in Europe history and came at a time when companies were delaying going public and the auto industry dropping in valuations. Volkswagen said they anticipated the IPO to be successful despite the market challenges. The success on Thursday will give Porsche a financial boost of 19.5 billion euro, giving them more flexibility in the production of electric vehicles.
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Treasury ETFs Have Already Nearly Doubled the Record for Annual Inflows (1 min read)
Investors have poured $100 billion into Treasury ETFs so far this year. It nearly doubled the previous record inflows in 2018 with still another quarter to go this year. An ETF strategist said there are a few potential drivers for the large inflow. It could be investors swapping their mutual funds into ETFs as some brokerages offer this service for products from the same providers. The market volatility has also chased a lot of investors to look at bonds. Treasury yields are also looking much more attractive as they are at their highest levels in the last decade.
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BlackRock Grows Its Thematic Range With Blockchain ETF Launch (1 min read)
BlackRock launched a blockchain equities ETF in Europe. It is listed on Euronext Amsterdam with a management fee of 0.50%. The ETF tracks a global blockchain index that provides exposure to 35 companies in developed and emerging markets involved in the digital asset industry. The launch further signals BlackRock’s interest in the digital assets space. BlackRock recently partnered with Coinbase to provide its institutional clients access to bitcoin. However, the firm has yet to launch a product with direct exposure to cryptos.
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Smart Options Investing Strategies That Could Earn You Serious Cash (8 min read)
Options are a type of derivative contract that gives the holder the right to buy or sell a specific asset within a time frame. Calls and puts are the two types of options. Call options give the holder the right to buy within a specific time while put options give the holder the right to sell within a specific time. There is a premium fee that is paid by the buyer and received by the seller. Traders typically use options to hedge on the price in an asset or to generate a stream of income. This article covers seven option strategies that can be used to get a steady income. Some of the strategies are more complicated than the others and may require more capitals or assume more risks. Therefore, it is important to do your own research and get yourself familiar before implementing the option trades.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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