Amazon, Walmart, Deutsche Bank discussed on Financial Exchange with Barry Armstrong


Released and blue the socks off of expectations expectations around two and a half percent came in at three point two percent. That is an awesome beat. It's a huge beat. And you know, for the for the Trump fans out there, you can honestly take a look at this GDP report and attributed fair bit of it to trade policy. Trade was the main thing that bumped this GDP number up a little bit it. It wasn't consumer spending. It wasn't you know, some some random little impact that happened here there. It was largely be as exports jumped while imports contracted now, if you're gonna take the contrarian view here, you're gonna say well that can't last forever. You know, if we get rid of some of these trade tariffs with China than that number is going to, you know, reach back, and then we'll be around two percent again. But you know, what I'll take solid GDP while we can get it. I mentioned earlier one one issue that I'm taking with the commentary of the White House. Houses economic advisor. Larry cudlow coming out this morning and saying, hey, you know, what inflation is too low. We need to cut rates still the fed needs to cut rates in spite of three and a half percent GDP or three point two percent GDP quarter. I really take a big issue without give me more sugar. Yeah. You're saying, you know, hey, GPA was three point two percent. And there's no inflation. Well, we want some inflation. So we're gonna lower interest rate. So if you guys want to invest your money in CD's pay you less than at the same time all the cost of goods is going to go up. So screw you American saver one. Other thing I'd mention about GDP as somebody who's fairly skeptical about the value of a lot that our federal government. Does remember all the hand wringing about how the federal government shutdown? That's gonna kill the economy. It's going to take all this out of GDP. It's like, no, Nope. Didn't do that. At all. Incorrect. Amazon reported earnings that revenue was about in line with expectations which was a bit of a disappointment. Quite frankly, they only grew their revenue at seventeen percent year over year, which frames on is not a terribly great number. However, they beat their profit expectations by fifty percent earnings per share expected to come in at four dollars and seventy two cents. They came in at seven dollars and nine cents per share. A massive earnings beat revenue as we mentioned was about in line still impressive. This is a company that has gone from producing revenue of four point one billion dollars back in awaits. And they're up to nearly sixty billion dollars in a quarter in revenue at this point in time. So still impressive growth but slowing down. And it begs the question, you know, what is the next move for Amazon. What are they trying to do at this point to continue that sort of revenue growth your way to younger? Remember this? The hot thing in the late nineteen sixties was conglomerates. You know, ITT and an essentially grandfather worked for ITT Amazon has it looks in many ways like a conglomerate for the twenty twenties, and that's just going to put together a bunch of different businesses. It's going to figure out how to do them better than the incumbents in. It's just going to keep killing people. I was saying last hour essentially these days, you take any industry, even I could see Amazon I can see an Amazon way to get into oil exploration and natural gas production. Or I mean, there's been hints that they might start buying gas stations that that's not quite into exploration budget. They've talked about so Amazon Amazon web services, you think about a business. It's all about crunching trillions of pieces of geological data. Yeah. It could be impressive. The newest announcement regards Amazon, they're gonna be porn eight hundred million dollars of the next quarter into expanding one day delivery for a whole lot of their products, which for me, usually isn't that big of an issue. But honest to God, I can see a lot of people signing up for this. Because they say I used to still go to CVS I used to still go to WalMart. It used still go to the grocery store for certain items with one day delivery. I don't need to do that anymore. I'm going to finally start paying that one hundred ten hundred twenty dollar annual fee and be an Amazon prime membership be an Amazon prime member. Which is frankly what Amazon's really rooting for when they when they are existing as a company, that's what's really driving their prophecies this. We had a poll question out on our website today. It's about a businesses accepting or not accepting cash and the poll question out on financial exchange, show dot com should businesses be required to accept cash as a form of payment. Yes, or no, I recognized by the way, I. I fully recognize we've got a few texts about this on the program that not accepting cash is a form of payment. Does you know effectively make all of your transactions tracked? If if you're trying to hide transaction if you're trying to, you know, just not be tracked by your credit card company or Google or the federal government than credit cards kind of ruins that in spite of that. I don't think businesses should be prohibited from rejecting cash. Don't think businesses should be prohibiting. They should be allowed to sit. We're not accepting cash. So what about the unbagged what about very low income people about homeless people? What about people that just want to protect their privacy? I get it. Don't shop at that store. Now. There are certain things that I think you need to accept legal tender for it says right on there on the currency that it's legal tender must be used to accept pay all debts. So obviously, if you're going to Bank, and you have to pay off your loan. They have to accept cash, and I think same goes for some basic purchases that you must make. But if I'm a I'm a specialty store, I'm an apple store. Why do I have to accept cash? We're going to get the I think you're in the crosshairs of the American Civil Liberties union push this too hard. Yep. Fair. And clearly I'm on the wrong side of this because every municipality saying back off companies you have to accept cash WalMart had a big bid to to create the largest UK grocery store there as a group was going to be combining with with another grocery store out there. Jason's berry been rejected by UK regulators. So all marts kind of out there without an idea of what to do at this point. Although if you're WalMart, and you look at the entire world. I can't imagine that the UK market really adds up to all that much. I would look at this kind of a bad signal for, you know, WalMart expanding in Europe, generally. But yeah, this will not be the undoing of the WalMart. Not too tight up. Jason's now when I read this story, I think this came out like a year ago, maybe six months ago that they were trying to get rid of this this branch. It really seemed to me like this is a distraction. We need to get rid of this and go focus somewhere else that we can focus on India's that we can focus on competing with Amazon, really. And unfortunately, it's going to distract management from perhaps more important areas of of their business Deutsche Bank on the other hand been I would say the most struggling another not a US based Bank. But most troubling large Bank that does business in the United States there talks with rival Commerzbank have fallen apart at this point. And they're not going to be merging which seems to be motivated by. German national pride to no small part. You know, deutscher wins a, you know, it's kind of sick Bank. And if a went up getting bought or, you know, falls apart in a way that allows Chinese banks American banks, French banks UK banks expanded Germany that will be wounding to national pride. Something fascinating in the strait of the Wall Street Journal, they have a six percent perpetual bond that is now trading at a big discount eighty-seven point nine euros. Yeah. And so that's essentially a six point eight percent permanent yield. You soon the Georgia banks can still honored fifteen years. Correct. Is a reason for. But that I could say for the short term six point eight percent, guaranteed from a giant German Bank. I would if I were portfolio manager I would think twice about is that a good again too. Yeah, I suppose I I get nervous about I mean at this point without some ratifying. This company is going to have to pi- cut their investment Bank people. I think they have to raise capital, they're gonna have to do something to raise capital that was the attempt with Commerce Bank is to form a larger company and have some access to capital that's not happening for your Bank stock price over the last five years gone from forty plus dollars down to you right now training eight dollars and sixteen cents down two and a quarter percent today too. So. Not great news for Deutsche Bank. I really don't see how they get out of this either without some sort of capital influx on I'm pretty nervous about deutchebanks big operations going forward. Japodlay you fully. That looks I wanna full body Clinton. Yeah. Nope. I'm half. Mexican. And I hate Mexican food love to pull a loco man, by the way. Or Anna's I love Anna's too. But a lot of people didn't realize that you police stock was I believe the second best performer and the S and P five hundred year today, they were up some sixty odd percent through through early this year. That's what happens when you poison and sick and people and your stock gets pounded, and then it slowly recovers. I mean, not that slowly covered pretty darn quickly. But nonetheless, they, you know, the stock was down this morning. And apparently investors are shaking it off. But the company has revealed in an SEC filing that it received a new subpoena from the US federal prosecutors just eight days ago requesting more information tied to exactly what we were talking about all the people getting the full body cleanse from Chippewa illnesses. Trace back to Simi valley, California, Los Angeles, sterling Virginia and Boston when a little more about exactly were where they think this was the Cleveland circle incident. Or if this is a different chip. So my question is. What is what are the investigating? I mean, what do they need to find out here about these illnesses? Are they going to shut down the company? It's not like they didn't disclose them. Can they change their operations? I I don't understand what they're going after here. It's it's curious to think what federal prosecutors going after is it some sort of, you know, willful refusal to notify health are whatever that's that's the only thing that would make sense to me is did you intentionally try and avoid disclosing this at a few locations that had happened in more places than you didn't disclose it to investors and to well, then the SEC would be investigating them rather than just federal prosecutors. I'm confused about conspiracy to commit mass diarrhea federal crime. Yeah. Barely stock. Still up today though. Stocks up one percent, I think it was down yesterday, but stocks backup. Yeah. It was actually down down pretty big yesterday down from seven eleven down to six sixty. So big drop yesterday. We are going to take a quick break when we come back. Shroud me and from Zacks investment research talking to us about the earning season, thus far stay tuned right here to the oh, wait. We're also gonna be playing trivia, I almost missed it so Cheryl is gonna join us, and they were gonna be doing some trivia,.

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