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Another day floating in a sea of red
Daily Market Predictions
- Thread starter el_ninj0
- Start date
are you a journalist for the herald sun ? on the business section of the herald sun, " Our market could be down again another 40-50........but bargain hunters are likely to be in force so there could be a recovery in the afternoon" ... same bloke different haircut.
well done dutchie
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More green today. AORDS up 20-30. Further consolidation on Wed.
But don't bet on it!
But don't bet on it!
Apparently due to fear of inflation, which would lead to faster and bigger interest rate rises than what has been happening.
Also, General Motors looking very 'shaky' (the position is actually quite bad and if it worsens, there would be an adverse impact on financial markets due to the size of the GM bonds and market capitalisation). Ford also looking a bit 'sick'. Both suffering due to huge increases in global supply (mainly in China - currently making 2 million cars a year and rising). MG Rover in UK already collapsed.
Also, General Motors looking very 'shaky' (the position is actually quite bad and if it worsens, there would be an adverse impact on financial markets due to the size of the GM bonds and market capitalisation). Ford also looking a bit 'sick'. Both suffering due to huge increases in global supply (mainly in China - currently making 2 million cars a year and rising). MG Rover in UK already collapsed.
Investor said:
MG Rover were luxury cars, not like GM and FORD. Wouldn't people realise that this had to happend sooner or later?, GM and FORD could not possibly compeet with china financially as it has a much larger population to seek revenue from.
el_ninj0 said:
Yes, many people do realise this would happen, but do not forget that the losses by investors have to be borne and 'go through the system'. If GM collapse, the amount of money investors would lose is huge. It could create a financial shockwave of some sort. There would also be lots of job losses, which could impact on consumer spending. Now, if both GM and Ford go down??????
Ford company owns some luxury lines (Jaguar, Aston Martin, Volvo, etc.)
GM owns Saab.
Investor said:
Yep, I realise they would own luxury lines aswell. However, China also has its own vehicle company, as does Japan(of course), the losses sustained by GM and FORD will be replaced by these other Chinese and Japanese car manufacturers, which makes them more economically powerful. The only problem is that currently the world follows the US markets, where as China is the leading economic power, and should be the one being followed.
el_ninj0 said:
The losses I was referring to, are financial losses that the shareholders (total loss of share value - around USD 28 per share) and bond holders (GM has USD 300 billion in issued bonds) will lose; and loss of jobs. These losses would not be 'replaced'. If one hold shares or bonds in GM, or work in GM, the loss of those 'assets' would not be 'replaced'.
I was not talking about loss of production capacity, which of course, is already being replaced.
If (big if) GM and Ford should collapse, there could be lob losses here in Australia as well, could be tens of thousands of job losses. Also would impact on car part suppliers like Pacifica and the glass/windscreen suppliers.
Investor said:
Im not saying that their wouldn't be losses, and yes, if GM and Ford were to collapse there would a massive loss to Australian jobs aswell. However, Im sure if GM or Ford were to collapse there would be another major (either Japanese or Chinese) car manufacturer to step in and reep the rewards of lower competition in the market place. And that, in turn would recreate the jobs and replace lost revenue in the hands of the new company, everything evens out in the end.
el_ninj0 said:
Unless, of course, they can export the cars cheaper from China and Japan than they can build them in USA.
GM and Ford are finding their cost structures caused by high labour costs and huge rises in health care costs for the labour force, have made them less competitive.
For the Japanese car makers, Mitsubishi is also facing severe financial problems.
Time will tell what happens.
It is reporting season over in Wall Street. Sentiment can change on a daily basis (and looks like has been changing on a daily basis).
Motorola and United Parcel Service reported better than expected performance.
Alan Greenspan stated "activity appears to be expanding at a reasonably good pace".
The world according to Greenspan is fair weather ahead (I say this in jest
.
Motorola and United Parcel Service reported better than expected performance.
Alan Greenspan stated "activity appears to be expanding at a reasonably good pace".
The world according to Greenspan is fair weather ahead (I say this in jest
.Investor said:It is reporting season over in Wall Street. Sentiment can change on a daily basis (and looks like has been changing on a daily basis).
Motorola and United Parcel Service reported better than expected performance.
Alan Greenspan stated "activity appears to be expanding at a reasonably good pace".
The world according to Greenspan is fair weather ahead (I say this in jest
It amazes me that on a day like this, the sellers dont just say "hey, stuff this, i can get more for my shares today." and raise there prices much higher. It seems kind of stupid not to do that in my opinion. But no, they continue to sell at lower prices than the previous days close, it makes no sense, none at all...
Are you getting confused about how pre-open works?
http://www.asx.com.au/investor/education/basics/trading_hours.htm
http://www.asx.com.au/investor/education/basics/open_Close.htm
http://www.asx.com.au/investor/education/basics/trading_hours.htm
http://www.asx.com.au/investor/education/basics/open_Close.htm
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