How are the mighty fallen. GE.

Daily Analysis - 20/07/2018

How are the mighty fallen. GE.

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General Electric, the venerable giant US conglomerate that makes everything from lightbulbs to jet engines and who was just booted off of the august Dow Jones Industrial list of the 30 most important US corporations releases its earnings for the quarter today before the New York stock exchange opens today. Mr. Flannery, the relatively new CEO is doing an admirable job at restructuring the mega firm by selling off non-core assets and streamlining those that are profitable. Nonetheless, a firm a storied as GE falling on hard times causes all of us to understand all the better that economic life, not unlike real life itself, is fragile and fraught with pitfalls and risk.

General Electric Down.


With today’s earning report announcement we expect that the price of the firm will fall as our sources indicate that a likely cut to the dividends the firm pays to its stockholders will be one of the results. There will likely be more news as to restructuring of the giant manufacturer.

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USDRUB Up.


The Russian Ruble continues to lose value against the US dollar. Largely due to the falling value of crude oil, but also to the effect of the slowly tightening noose around its collective neck being tied by the Mueller investigation into Russian meddling into the 2016 elections. This is a serious threat to the Russian Federation as US legislators,  the US President’s surreal statements notwithstanding, are going to take a dim view of their behavior when it comes fully to light and very likely to impose sanction on the Putin regime.

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WTI Crude Up.


As all of the commodities that are denominated in US Dollars go so goes the US Dollar. In other words, as the US dollar strengthens, or weakens so goes the price of assets denominated in those dollars. Therefore the price of US Crude, called West Texas Intermediary, (WTI) is rising as the more weaker dollar are required to purchase the same amount of crude oil.

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