BEWARE! THE BANKS ARE OUT TO GET YOU!

[Whyperion]

Its the investors in such loan companies that pay out the most in your own stock or loan portfolio - its what a lot of "challenger" banks are investing in - or the owners of such banks.

I hadnt really look at the ISA - and its not really tracked daily for a nice report but I thought all the trump tariffs had been priced in , but it has still managed to fall another 5percent since last Thursday which seems ridiculous.

[Stanley]

THIS is the main financial news at the moment.....
Stock market turmoil deepened on Friday, as China hit back at tariffs announced by US President Donald Trump, raising the likelihood of an extended trade war and damage to the global economy. All three major stock indexes in the US plunged more than 5%, with the S&P 500 dropping almost 6%, capping the worst week for the US stock market since 2020. In the UK, the FTSE 100 plunged almost 5% - its steepest fall in five years, while Asian markets also dropped and exchanges in Germany and France faced similar declines. Trump, who has vowed to remake the global trade order, dismissed concerns about the market shock, noting that the US labour market is strong. "Hang tough," he urged his followers on social media. "We can't lose." The global stock market has lost trillions in value since Trump announced sweeping new 10% import taxes on goods from every country, with products from dozens of countries, including key trading partners such as China, the European Union and Vietnam, facing far higher rates. Analysts say the moves, some of which are due to go into effect as soon as Saturday, amount to the biggest tax increase in the US since 1968. They expect the measures to lead to a contraction in trade, and have warned they could drive many countries into an economic recession.

[Tizer]

Well what a surprise! But what we predicted and the poor people among Trump's supporters believed his promises to `drain the swamp' and help them...
`Wall Street banks reap $37bn from Trump trading boom: Banks have gained from surge in volumes amid market gyrations' FT

[Stanley]

That's what Trump is running the US for, profit for him and his cronies. That's why we should be super suspicious of him if and when trade treaties are planned. He's after the drug spend of the NHS!

[Stanley]

See THIS BBC report on what the Boss of the US Fed has said...
US economic growth will be hit and prices will rise for consumers as a result of new tariffs on goods entering the country, the head of America's central bank has warned. Jerome Powell, chair of the Federal Reserve, said the import taxes recently announced by President Donald Trump were larger than the bank had expected, going beyond the higher end of its estimates. His comments followed a period of turmoil on global stock markets as investors reacted to trade tariffs coming into force and the escalating trade war between the US and China. Powell said surveys of households and businesses reported a "sharp decline" in their sentiment over the economic outlook, largely due to tariff concerns.
Will Trump argue against his chief adviser?

[Whyperion]

Short term pain worth long term gain

[Stanley]

My question was answered this morning. Trump says the 'termination' of Powell can't come fast enough.

[Stanley]

THIS article on the US bond market is worth a read....
Stock markets around the world have been relatively settled this week after a period of chaos, sparked by US trade tariffs. But investors are still closely watching a part of the market which rarely moves dramatically - the US bond market. Governments sell bonds - essentially an IOU - to raise money for public spending and in return they pay interest. Recently, in an extremely rare move the rate the US government had to pay on its bonds rose sharply, while the price of bonds themselves fell. The volatility suggests investors were losing confidence in the world's biggest economy. You may think it's too esoteric to bother you, but here's why it matters and how it may change President Trump's mind on tariffs.
Trump is convinced that his economic policies are correct and that he has the markets under control. He may find out he is mistaken and we aill all suffer, not just the US.

[Stanley]

See THIS for more evidence of the dangers inherent in crypto dealing
Trading cryptocurrency was just a bit of fun for Tzoni Raykov, but losing $1,500 worth to an administrative error has left him with serious concerns about his treatment by the industry. The oil engineer has held an account with Revolut for several years - using its app to split bills with friends after going out for dinner or drinks. They would pay each other using traditional currency, like the pound sterling or US dollar. But after seeing the e-money firm advertise its cryptocurrency services, he decided to give it a try. What Tzoni thought would be a straightforward transfer of cryptocurrency coins has left the Bulgarian national angry and out of pocket. His experience highlights some of the frustrations people have had using cryptocurrency where many of the customer safeguards which underpin standard online banking transactions, some mandated by law, do not apply. "When they treat you like this, it makes you feel like you can't do anything," he told BBC News. "Like you are powerless."

[Whyperion]

After tumbling in most of April the underlying ISA value mum has (which is not a lot) has started to go up of late days - of course this is after thinking that a small dabble of purchase earlier might have been worth a punt but not brave enough to go for). Basically it looks like Trump back peddaled on most of the Tariff impacts for the larger companies at least. Talking voices in the US though think the Standard and Poor is still overvalued by up to a fifth on underlying real returns , and that is probably true but much is confidence and bluff rather than a real look at likely net Us (and UK ever lower) profits in margin and volume

[Stanley]

See THIS Business News....
2 hours ago
A duty-free loophole for low-value packages is about to be closed by President Donald Trump, pushing up prices for US customers of firms like Shein and Temu. The Chinese online retail giants relied on the so-called "de minimis" exemption to sell and ship low-value items directly to the US without having to pay duties or import taxes. Supporters of the loophole, which applied to parcels worth less than $800 (£600), argue it helped streamline the customs process. But both Trump and his predecessor, Joe Biden, said it damaged American businesses and was used to smuggle illegal goods, including drugs.

[Tizer]

Today's Guardian front page...
`Ministers to block Thames Water paying bosses bonuses out of emergency loan: Exclusive: Firm close to insolvency says using £3bn loan to pay ‘substantial’ bonuses is vital to retain senior managers' Guardian
Ministers plan to use new powers to block bosses from Thames Water taking bonuses worth hundreds of thousands of pounds as the company fights for survival, the Guardian can reveal. Britain’s biggest water company admitted this week that senior managers are in line for “substantial” bonuses linked to an emergency £3bn loan....
Government sources said these bonuses could be banned as soon as next month, and any paid for the last financial year, between April 2024 and April 2025, could be clawed back. The environment secretary, Steve Reed, said “the days of profiting from failure are over”. It emerged this week that Thames was planning to use part of a £3bn emergency loan, which was meant to stabilise its finances and save it from collapse, to pay bonuses for senior executives.

[Stanley]

I heard that as well Peter. Am I alone in thinking that it's madness? The argument that if high wages and bonuses aren't paid companies will lose vital executives has been a money-spinner for far too long. High time someone tested it!
(Remind me, weren't these vital executives the ones who ran the companies into trouble?)

[Tizer]

Am I alone in thinking that it's madness?

No, there's you, me and just about everyone who isn't a Thames Water boss.

[Stanley]

Do you think the results of the deliberations of the Remuneration Committee would be any more sensible if there was a rule that membership of said committee was solely composed of hourly wage paid workers?
As things stand such committees have always seemed to me to be a Cunning Wheeze......

[Tizer]

There's probably a Committee of Remuneration Advisory Board (CRAP) members who suggest increases in salaries and charge a fee in proportion to the percentage rises they suggest.

[Stanley]

That wouldn't surprise me at all Peter. At the very least they have an agreement that when there is any discussion about their remuneration the same people that got the benefit of their work should have a say. It's called "You scratch my back"......