How Amazon plans to take on supermarkets
Why is this significant?
The online retailer has seen demand reach new highs as it became a key retailer over lockdown for many stuck at home. Consumers spent over $11,000 a second on Amazon products and the share price grew by a third in one month during the height of the pandemic. Retail analyst, Richard Hyman, said: “[Amazon] can be compelling, disruptive and it’s a business with gigantic ambitions.” “I think they will be a big player in food retailing online. They wouldn’t be doing it otherwise. Most of the markets they go into, they want to be the biggest player. “The frightening thing for everybody else is that they all really need to make money, whereas Amazon doesn’t and that places them at an enormous advantage.” Shares in Amazon (NASDAQ: AMZN) are trading up 1.54% at 3,055.21 (0830GMT).How investing £3k in Tesla and Bitcoin could have made you £150k in a year
March 2019 to July 2020 and the 8-step formula:
Step One: It’s the 15th of March 2019, you take £3k out of your savings or current account and approach a broker to buy one Bitcoin, currently priced at £2,995 after the alternative currency’s bubble burst in 2018. You then take an early summer holiday you’ll pay for later on, and watch the Bitcoin price recover. Step Two: Hitting its one-and-a-half-year high on the 9th of August, you sell your Bitcoin for £9,371. Step Three: You see Tesla’s Q3 profits are set to be announced on the 25th of October, so before then you look for the best time to convert your Bitcoin pounds into dollars. On the 21st, when cable stands at 1.30 – the best rate for the pound-holders since May – you convert your pounds into $12,182. Step Four: Also on the 21st of October, on what’s ended up being a very busy day, you see some positive predictions for Tesla’s Q3 emerging. You buy as many Tesla shares as you can – 48 – at a price of $12,168 without fees. Go and enjoy a prolonged Christmas break, you’ll earn it later. Step Five: Looking to offset the cost of Valentine’s Day, you sell all of your 48 Tesla shares on the 19th of February 2020. The shares sell for $917 apiece, yielding $44,016 excluding fees. Step Six: ‘Black Monday’, ‘Coronavirus Crunch’ and lockdown. March has been costly for all those who didn’t sell off during the Valentine’s sweet period, and the month ended up being a fire sale for fast-handed and shrewd investors. You look back at Tesla, now sitting at $361.22 a share on the 18th of March. Spending everything you can, you bag 121 shares for $43,707, plus change. Step Seven: Having bought at the stock’s year-to-date nadir, the trajectory of your shares’ value is consistently upward, making several headlines and achieving new milestones each week. Then, prior to what is expected to be a fairly upbeat quarterly results publication, you sell all 121 of your shares on the 20th of July, at the all-time-high price of $1,643 per unit. You make a total of $198,803 excluding costs. Step Eight: Between the 20th and today (the 27th), you choose the best day to convert your cash back to pounds. Settling for the 24th, at a rate of 1.28, you change your dollars to pounds, leaving you with £156,537. This number could be higher if we’d waited for more favourable interest rates – say, after US-China tensions had de-escalated, and after US equities had had some time to recover from this week’s busy economic calendar.What does the Bitcoin – Tesla investment formula teach us?
First, that when played right, even volatile and seemingly faddish trading trends can yield huge returns. Second, that while most people were in a state of panic over coronavirus, the pandemic offered some very attractive opportunities for investment, which I’m sure many took advantage of. However, there are also lessons we should heed. First, to yield the kind of returns we’ve discussed, you’d have to invest on the right days, supported by the right information. These kind of investment decisions are normally part-luck and part-judgement, and in the case of the latter, are normally done best by those with the contacts and experience necessary to access and identify crucial pieces of information which dictate price movements. This research was done for fun, with the (indulgent) gift of hindsight. Second, and concurrent with the idea that market shocks offer opportunity, the initial ‘U-shaped’ recovery in June has in some ways inverted during July, and may continue in such a fashion for the near future. Prior to some longer term economic recovery, the next few months could be the opportune time to identify ways of making the best of a bad situation.Bitcoin poised to soar alongside gold, surges past $10,000
Gold price hits all-time high with bleak economic horizon
The economic outlook gives the gold price some headroom
With Britain’s reimposition of quarantine measures on travellers returning from Spain – and the subsequent price drops on Easyjet, TUI and IAG shares on Monday – we should assume that the first-order economic effects of the virus are far from over. It is reasonable to factor in the possibility of additional travel restrictions and more regional reimpositions of lockdown measures, as coronavirus threatens to flare up for a second time amid efforts to return to normality. In addition to these immediate impacts, we have the widely discussed second-order issues of unemployment, adjustments to the range and provision of companies’ services, and changes in consumer behaviour – all of which will likely contribute to relatively slow economic activity for the rest of the year. Further, and beyond pandemic considerations, we must take into account the impacts of political tensions. British sentiment will continue to be bogged down by Brexit, and a mixture of Brussels loggerheads and the likelihood of extortionate trade deal terms with the US. In addition, the US itself is contributing to poor market sentiment, with a mixture of renewed tensions with China, and a busy economic calendar this week. Speaking on US politics, and the impact this is likely to have on gold prices, Spreadex Financial Analyst, Connor Campbell, stated: “Investors don’t buy the precious metal for fun. It provides an ostensible financial safe haven away from the world’s uncertainties and stresses, of which at the moment there are numerous. This doesn’t just include the COVID-19 pandemic, but the latest geopolitical flare-up between the United States and China.” “[…] The US is facing an incredibly busy week, aside from COVID-19 and US-China tensions, with the latest Federal Reserve meeting on Wednesday, the first Q2 GDP reading – which is going to be UGLY – on Thursday, and a stacked earnings calendar including appearances from the golden trio of Apple, Alphabet and Amazon.” The takeaway from this analysis should be that the economic outlook is not peachy. With a combination of a potential COVID second wave and UK-US protectionist politics, any forecast of a near-term economic recovery need be taken with a pinch of salt. What this means for gold is that the ‘grand final’ crescendo of its price rally may not yet be over, and today’s all-time high may not even be the highest we see gold prices hit this year. At the very least, and even with some price correction, the bleak economic situation should see gold keep its place above the $1,500 mark it started the year on.Easyjet and TUI shares drop 11% on Spain holidaymaker quarantine
“The airlines have led the loses in early trade today, with the likes of TUI, IAG, Dart Group, easyJet, and Ryanair all suffering after the swift UK decision to reimpose a 14-day quarantine on any flights from Spain.”
“Whilst some will criticise the speed at which these measures have been imposed, it does show a willingness to act early in a bid to reduce imported cases in the UK.”
“With Ryanair losing €185m over the April-June period, airlines desperately need a smooth summer as they bid to stabilise their balance sheet after months of losses.”
“Unfortunately, this Spanish quarantine announcement is unlikely to be the last of its kind, with outbreaks throughout Europe likely to provide a stop-start summer for airlines as different regions attempt to extinguish any surges in Covid-19.”
The news of airlines declining has also had a wider impact on the UK economy, with the FTSE dipping from 6,123 to 6,093 points at the start of trading, before regaining some composure and pushing back up to 6,109 points, still down 0.24%. Also, after recovering slightly, Easyjet shares are down 11.22% to 522.92p per share. This is up on its 475p nadir on 3 March, but well below its June recovery spike, where it reached 891.00p per share. Meanwhile TUI shares have fallen 11.55%, to 300.38p per share – above its 254p nadir in April, but far beneath its 530p lockdown peak on 27 May.Are new face mask laws pointless?
Over-stretched police receiving little sympathy
The relatively small number of police on the streets – while greatly expanding in number during lockdown – now have the impossible task of keeping tabs on almost every individual who steps outside of their front door. Alongside being underfunded and thinly spread across their typical duties, they are now being tasked with enforcing these new laws across vast numbers of retail and food outlets across the country, and police representatives have already admitted that this is a futile venture. Speaking to The Independent the national chair of the Police Federation of England and Wales, John Apter, stated that police simply do not have the capacity to ensure every person entering a food or retail outlet is wearing a face mask, and asked operators to enforce the new laws on their own premises. “It is our members who are expected to police what is a new way of living and I would urge retail outlets to play their part in making the rules crystal clear; if you are not wearing a face covering then you are not coming in.” Apter commented. He added:“Officers will be there to help stores if needed — but only as a last resort, as we simply do not have the resources.”Unfortunately, large supermarkets such as Tesco, Aldi, Sainsbury’s, Asda and Iceland have all said they will not be enforcing the new face covering laws. Some said they will not prohibit non-adherents from entering stores, as they believe asking their staff to take on the task of enforcement would put them at risk. All of the supermarkets state that their messaging and broadcasts will clearly encourage customers to adhere to the new laws, while some said they will have face masks for sale near the entrances of their outlets. Taking a more proactive approach, Waitrose and John Lewis stated that they will have staff at the doors of their shops to remind consumers to wear face coverings, while Greggs has stated that all its customers will be “required” to wear face masks when entering its premises.

