No need to hide the corruption anymore, what Bondi gonna do.....eat their own It will take years to uncover all the illegal crap going on right now
This was written earlier in the week, so the numbers and percentages have changed some while the core concepts - issues are relatively uchanged. Dell, HP And Apple Face Tariffs. ‘Raising Prices’ Is Their Best Option: Analyst The research arm of global banking giant Morgan Stanley called President Trump’s across-the-board tariffs a “lose-lose” situation for hardware companies such as Apple, Dell Technologies and HP Inc., saying that “raising prices” for products is their “most viable path forward.” Morgan Stanley Research delivered the assessment in a research note last Thursday, a day after Trump announced so-called “reciprocal tariffs” ranging from 25 percent to 54 percent for goods coming out of roughly 60 countries and regions, which he said are meant to boost the U.S. economy and “protect American workers.” These new tariffs are set to go into effect Wednesday, with goods from Asian manufacturing hubs such as Vietnam, Taiwan and Thailand expected to face tax rates of 46 percent, 32 percent and 36 percent, respectively. Since the report came out, Trump has warned that he will impose an additional 50 percent tariff on Chinese goods, which would bring total import taxes to 104 percent for such things, in response to China’s counter-tariffs on U.S. products. While some of the targeted countries and regions have said they are seeking new trade deals with the U.S. to remove tariffs, China said Tuesday it would “fight to the end” and continue countermeasures in response to Trump’s latest threat, the Associated Press reported. Trump has indicated he is open to striking trade deals, saying on Tuesday that he spoke with South Korea’s acting president about a potential deal while saying that China “wants to make a deal, badly, but they don’t know how to get it started.” Dell, HP Say They Have ‘Agile’ And ‘Resilient’ Supply Chains A Dell spokesperson told CRN on Monday that the Round Rock, Texas-based company is “reviewing and assessing the impact of the tariffs announced last week.” “Dell has a strong track record of leading through any environment with our globally resilient and agile supply chain,” the representative said in a statement. In a statement to CRN, an HP spokesperson said Tuesday that the Palo Alto, Calif.-based company “has an agile and resilient supply chain that helps us adapt to the evolving economic landscape to ensure we deliver for our partners and customers.” “Our strong relationships with supply chain partners around the world allow us to remain agile and responsive to changes, as we are not tied primarily to company-owned infrastructure or factories in countries heavily impacted by tariffs,” the representative said. “We will continue to monitor developments and have the ability to adjust operations as needed,” the HP spokesperson added. Apple did not respond to a request for comment. Why And How Tariffs Will Hit Apple, Dell And HP Morgan Stanley Research said the tariffs “add to the growing list of concerns” it has for the hardware companies it covers, which include Apple, Dell and HP. Other companies in the firm’s coverage that will be impacted by tariffs include Logitech, Sonos, Garmin and GoPro. “As we highlighted last week, policy uncertainty, deteriorating business/consumer sentiment, and worsening macro data have resulted in slowing enterprise hardware spending growth and persistently negative consumer electronics spending intentions since late February,” the firm wrote. “Yesterday's reciprocal tariff announcements will likely amplify these headwinds,” it added. That’s because companies like Apple, Dell and HP “rely on extensive international manufacturing, with the large majority of finished goods sold into the U.S. assembled in [southeast] Asian Nations, making them [the] worst positioned” among the companies it covers, according to Morgan Stanley Research. Many of these hardware companies, including Apple, Dell and HP, started reducing their reliance on manufacturing in China in 2018 during the first Trump administration, the firm said. Cupertino, Calif.-based Apple, for instance, has moved roughly 15 percent of iPhone production to India since then, and all its MacBooks for the U.S. market are now made in Vietnam. Dell and HP, on the other hand, “diversified U.S.-bound notebook production to Vietnam and Thailand, respectively,” Morgan Stanley Research added. While shifting production outside China was previously seen as a way for these vendors to lower their exposure to tariffs, this is no longer the case, the firm said. That’s because Trump has cast a wide net with his latest round of tariffs, hitting countries like Thailand and Vietnam that were previously seen as safe for U.S. vendors to use as manufacturing hubs, according to Morgan Stanley Research. “With yesterday's reciprocal tariff announcement, there becomes very little differentiation in friend shoring vs. manufacturing in China—if the product is not made in the U.S., it will be subject to a hefty import tariff,” the firm wrote. Given Apple’s exposure to tariffs due to its reliance on Asian manufacturing hubs, the iPhone giant would face an estimated additional cost of $33 billion annually, which would represent 26 percent of its earnings before interest and taxes, according to Morgan Stanley Research. For Dell and HP, “the added tariff cost could equate to nearly the entirety of their expected net [incomes] in 2025,” the firm added. Why ‘Raising Prices Is The Most Viable Path Forward’ Morgan Stanley Research said that “raising prices” for products” is the “most viable path forward” for hardware companies it covers. That’s because the widespread nature of the tariffs makes most of their other mitigation tools “ineffectual,” according to the firm. For instance, “there is little flexibility to pull forward/stockpile inventory, and diversifying supply chains takes too long,” Morgan Stanley Research said. As for absorbing the extra costs created by tariffs, this would guarantee a “significant margin headwind” for impacted vendors, the firm added. These companies could consider redirecting products to markets without tariffs, “but it would depend on the usable infrastructure available,” Morgan Stanley Research said. As a result, the firm considers the tariffs a “lose-lose” situation for hardware vendors. “Raising prices is the most likely mitigation tool, in our view (all imports now face tariffs, so the playing field has been somewhat leveled), but it's inflationary and guaranteed to negatively impact demand, given the severity of some pricing increases,” it wrote. Could Shifting Production To The U.S. Be The Answer? Morgan Stanley Research said it’s “unlikely” that hardware companies would ever shift production to the U.S., citing cost, time and resources as well as expertise and policy uncertainty as “barriers to entry.” The firm said it would cost “hundreds of billions of dollars” to stand up manufacturing plants in the U.S., “not even counting the wage disparities between [southeast] Asia and the U.S.” For example, Apple supplier Foxconn spent more than $1.5 billion, inclusive of perks like lower power costs and subsidies as well as tax breaks, to build a manufacturing complex in China that produces roughly 50 percent of the world’s iPhones, it said. “Standing up a manufacturing facility in the U.S. would take, at the very minimum, 9 months with a running start and labor availability. Most likely, it would take years. And then there is the question of available labor in the U.S.,” the firm said. “We'd presume that even with automation/humanoids/robots, there aren't enough skilled workers in the US with expertise in tooling,” it added. The uncertainty over U.S. policy will also hold back companies from investing in domestic manufacturing capacity, according to Morgan Stanley Research. That’s because with Trump in his second term as president, policy “could be vastly different” in four years, the firm said.
This was in the past, so working conditions on the production - assembly lines have improved.............but probably still tougher conditions and with much lower pay than what somebody in the US working under a UAW or similar contract would get. Apple Sent Tim Cook to China, Encourages Suicide Nets at Foxconn: Report (Feb - May 2011) Apple says it deployed COO Tim Cook and helped convince Foxconn to attach large nets to its building to help combat a rash of suicides at the iPhone-maker's China contractor that fabricates several of its products. A new report released by Apple documents how the Cupertino-based company worked to combat problems, such as worker exposure to dangerous chemicals and child labor, with its overseas suppliers. Perhaps the most glaring information from the 25 page report is how Apple tried to deal with 12 suicide attempts that took place at Foxconn's facility in 2010. Apple says it deployed COO Tim Cook and helped convince Foxconn to attach large nets to its building to help combat a rash of suicides at the iPhone-maker's China contractor that fabricates several of its products. A new report released by Apple documents how the Cupertino-based company worked to combat problems, such as worker exposure to dangerous chemicals and child labor, with its overseas suppliers. Perhaps the most glaring information from the 25 page report is how Apple tried to deal with 12 suicide attempts that took place at Foxconn's facility in 2010.
I'm still watching the treasury market and the 10 year yield. I think we're past forced selling to cover calls. Some country or group of countries is out there selling into the treasury market to show the US they have leverage too. After 2018, China greatly reduced their US treasury holdings, but still hold like $750 billion worth. Japan actually has the most in the world. You wouldn't even need to sell in that much to keep the yield rising.
I don't think it's malicious. During the Yen Carry Trade blow up last year, it was exposed that for Japanese banks to make money, they would carry higher yield debt to offset the Yen and Japanese bonds the CB were selling off abroad. It makes them more rate sensitive when Treasuries start spiking.
Imagine gaslighting people nd claiming Trump would be better for the economy only for the fed to predict a recession and youre the one talking **** lol. Right wingers live in the craziest echo chamber in modern history
once again ur confused and all mixed up the yen carry was an arbitrage opportunity for currency traders, in particular the Japanese. the Yen was declining againt the US dollar. after the Ukraine invasion, due to US inflationary fear, this gap got widen. initially, the Japanese currency trader borrow $ in low-interest Yen to buy the higher-interest US dollar; a lot of them then use the Dollar to buy hot US stocks. this drove up the demand for USD and hot US stocks. then they profited from selling the US hot stocks on the way up, creating a spike in the VIX , in Aug 2024. the profit more than pay off the borrowing cost do you even understand the fundamental of a currency trade ? when is a currency trade not sensitive to rate?
When japanese banks pile up bonds like high yield debt to meet reserve requirements You're thinking of foreign hedge fund buyers. Japanese banks don't make money off of Japan's previously near zirp bonds. It's funny you think I don't correct you because you're right. I just let you make stupid statements for you to continue your dumb bets. Like the assinine notion that Treasury can print infinite debt and the Fed can do infinite QE. If that were true, Trump wouldn't have folded when stocks crashed along with rising bond yields. Something is still broken and Dimon is already predicting another government intervention soon. https://finance.yahoo.com/news/dimon-warns-treasury-market-kerfuffle-143533961.html YEARS WITHOUT A FINANCIAL BAILOUT: 2 Replying to you is always enjoyable. Will Like and Subscribe to your awesomely useful takes and further enable your gambling addiction.
thanks for the unsolicited corroboration that you’re confused / all mixed up. But I don’t need the help
vix has dropped to 30 when it was trading ~~ 392, sold a bullish PUT spread on MSFT, using 2 May expiration; MSFT will report on 30 April buy to open the 400 strike PUT contract sell to open the 380 strike PUT contract collected a premium of $7.90 for which i am willing to assume the potential max liability of $20 (should msft trade below 380) on expiration, should MSFT trade above 400, the spread i sold will become worthless; i get to keep all the premium
The Bond market seems to be stabilizing and doing "what it's supposed to do". Rates are ticking lower the last couple of days as people seem to have an appetite for US Treasuries again. Whoever was selling off (Japan?) has probably made their point or reduced their position enough without putting the underlying asset at risk (don't cut off your nose to spite your face).
counter point from USA Today Nvidia's projected growth is massive Another reason why I think Nvidia is a buy today is its build-out projections. During Nvidia's 2025 GTC event, CEO Jensen Huang gave the bold prediction that data center capital expenditures will reach $1 trillion by 2028. Considering that 2024 saw around $400 billion in capital expenditures and that Nvidia generated $130 billion over the past 12 months, this bodes well for stock growth. Should Nvidia maintain its current slice of the data center capital expenditure pie, it would generate around $325 billion in revenue from data centers alone by 2028. That's monstrous growth from today's levels and would make investors a lot of money.
more from USA Today But let's be a bit more conservative here and say that Nvidia will only add half of that growth over the next four years, indicating it would generate $228 billion. Moving forward, having a bit of pessimism is a smart play because there are other competitors coming to the market who are aiming for Nvidia's market share. Custom AI accelerators are the primary hardware that could steal this market share from Nvidia, as they are more powerful than GPUs when the workload is configured properly. Furthermore, data center buildouts could be less than expected, and the $1 trillion figure may not surface. Even with this conservative growth estimate, Nvidia's stock looks like a great buy here. If Nvidia generated $228 billion in revenue at the end of 2028 and maintained its profit margins, it would generate $127 billion in profits. Nvidia's stock valuation has come down significantly over the past few months, but even over the long term, it's not uncommon to see the shares trade for a high valuation. So, we'll assume that Nvidia's price-to-earnings (P/E) multiple at the end of this analysis will be 30.
