This week’s stories cover the latest on the US-China trade war, how Beyond Meat has stood out in a cluttered IPO market, and why people want to break up Facebook (1:22 min read).
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1. The never-ending trade war
Talks between the US and China appear to be stalling, so the seemingly never-ending trade war is back on everyone’s radar.
President Trump announced he would increase tariffs from 10% to 25% on $200 billion of goods from China, with potentially more to come. China hit back with its own increase in tariffs on US goods.
This trade war resurfacing will no doubt add to share market uncertainty in the short term. But as we always say: keep calm and carry on investing – smart investors don’t get spooked by market volatility for these reasons.
2. Beyond Meat IPO
Alternative meat producer Beyond Meat recently listed on the stock market, and is trading at around 3 times its initial public offering price.
The company creates plant-based meat alternatives with a mission to provide a better way to feed the planet.
We believe as awareness surrounding the negative environmental impact of livestock production increases, this could become a significant industry over the next decade.
It’s no wonder Beyond Meat have outperformed the much-anticipated but disappointing tech IPOs of Uber and Lyft.
3. Who doesn’t want to break up Facebook?
A growing number of US Democratic candidates campaigning for the 2020 elections have called for stricter regulation of technology companies; one candidate has even provided plans to ‘break up’ these dominant tech players like Facebook and Google.
As technology companies keep growing and wield greater market power, politicians will inevitably pay closer attention.
Any potential breakup in the future of technology companies doesn’t necessarily mean shareholders will always lose out, but rather shareholders might end up owning shares in separate companies of what was one company.
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