[The beef 675]
[I'm an image]
âIâm not sure how to feel.â - Jeff, reacting to the phase 1 trade deal
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Hey there carnivores,
Markets rose on news that a phase 1 trade deal was imminent.
Today weâre diving deep on that trade agreement.
Keep raging,
Jeff & Jason
[Image]
[I'm an image]
BFD
When he wasnât busy throwing shade at a 16-year old, Donny Politics was doing what he does best on Thursday: closing deals.
âVERY BIG DEALâ
Just after markets opened, Trump [tweeted]( âGetting VERY close to a BIG DEAL with China. They want it, and so do we!â Ok Donny, weâve heard that before. Throughout the day reports hinted that the deal was in jeopardy, but news broke Thursday afternoon that Donny Deals had [signed]( the phase 1 trade deal after all.
What does it say?
Thereâs no official word (read: POTUS tweet) on the dealâs verbiage but a little birdie tells us that tariffs on $160B worth of Chinese goods set to go live on Sunday would be [avoided](. Plus, there appears to be language cutting tariffs on $360B worth of Chinese imports by 50%.
So whatâs in it for the US?
The Peopleâs Republic has pinky promised to [buy more]( agriculture goods. FarmersOnly.com is about to be popping off. A major hangup of the phase 1 deal was Beijing's willingness to purchase just $40B of ag products vs. the $50B the White House envisioned as fair. It appears that US and Chinese trade reps have come to terms.
President Xi has also indicated that his country will stop doing sketchy sh*t like stealing intellectual-property and manipulating their currency. Looking at you Huawei.
The bottom line...
Issues remain between the two economic superpowers⦠like a disagreement over the massive subsidies China provides to fuel industry in the country. Oh, and, of course, it remains to be seen if any of this sh*t will actually be enforced.
Still, markets went from six to midnight on news of a deal. The S&P and Nasdaq [set new records]( and the Dow was justttt a bit off of its own high.
[I'm an image]
Kyle Dennis is the Lamar Jackson of the trading world. Except he doesnât score touchdowns, he makes it rain profits.
And you have the opportunity to join him as he stalks his prey, accurately times his moves, and goes in for the kill.
[CHECK OUT KDâS STRATEGY RIGHT NOW](
[I'm an image]
âï¸ Wheelin' and dealin' The world's number one Airline, unbeknownst to those who have flown with it, Delta, announced [it is taking a minority stake]( in private aviation company Wheels Up. The amount was not disclosed and the company said it will not adjust 2019 guidance based on the deal. Wheels Up just closed a funding round worth $128M, valuing the company at $1.1B. The move means that Wheels Up has solidified itself as a major player in the private aviation industry with a fleet of 190 planes and a customer base near 8k. One would assume that Delta can offload some of its high-status customers to private flights, and cram more of us poors into regular flights. #synergies.
âï¸ An Apple a day. What a day it was for Tim Cook and Apple. Early on it looked grim AF as reports surfaced that the tech giant [sold 35% fewer]( iPhones in China during the month of November vs. last year. And Appleâs stock began to slip as investors feared that the impending December 15th tariff deadline could cost the company up to $70 per phone. Then, well, if you got this far you already know what happened... POTUS signed a trade deal officially delaying the tariffs, and all seems to be right with the world. Or at least in the iOS-phere. Suck it Samsung.
âï¸ Holy ship! Fun fact: Amazon's logistics department is now responsible in the US [for shipping roughly 50%]( of the items that are sold on the site. Morgan Stanley's model estimates that Amazon is currently shipping 2.5B packages, and will get to 6.5B by 2022. Meanwhile, UPS and FedEx will only be at 5B and 3.4B, respectively. I think we can safely say RIP in peace USPS.
âï¸ Scared of commitment. Facebook finally agreed to put its money where its mouth is. The social network said [it will spend]( $130M to establish an independent board to moderate how the company reviews its content. That haul will cover the first 6 years of operation, and likely dissolve once people forget... Despite the righteous behavior, the FTC [is waging its own battle]( against the 'book to prevent the company from merging technology systems so users can communicate between WhatsApp, Facebook, and Instagram. The argument is that the consolidation would make it harder to break up Facebook if it became too big in the future.
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