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The Trump administration announced a ban on Chinese mobile phone equipment giant Huawei and US giants were surprisingly quick to comply. Huawei is at the heart of the current storm and it’s currently experiencing major disruptions across the global supply chain.

According to reports, many chipmakers such as Qualcomm, Broadcom, Intel and Xilinx stated that they will not supply Huawei and Google paused the supply of hardware and various software services.

How come Huawei is taking the heat for the growing tensions between the US and China? Well, according to President Trump, it assisted the Chinese government in espionage. If you were up to date with recent news, the ban was hardly a surprise. According to Huawei, it has suspected this could happened and has been preparing stockpiles of chips and other components, allowing it to continue operating for at least 3 months. However, the impact of the ban doesn’t end with a single company.

For starters, Huawei is not just another company. It’s the largest provider of networking gear in the world, as well as the number 2 smartphone supplier.

American chip giants like Micron could also feel the impact of the ban and delay the rollout of important 5G wireless networks around the globe, including in China. This could affect US companies that are increasingly dependent on China for their growth.

The tech industry won’t just lose Huawei as a major customer. The adoption of 5G technologies might become slower, affecting the demand for smartphones and networking equipment and even hurt new, 5G dependent technology such as self-driving vehicles. The current ban could lead China to delay its 5G network build, having a substantial impact on various global component suppliers.

Like any decision involving the United States, Bloomberg reports that ripple effects were quickly felt in Europe and Japan.

The move also fuels existing tensions between the United States and China, adding to concerns of a renewed Trade War that can be devastating to global economy. Some people claim that Huawei is just a pawn the heated negotiations between Washington and Beijing and that the ban will be resolved once a trade deal is reached. Are they right?

At iFOREX, you can invest in many semiconductor companies and US tech giants, as well as hundreds of other CFD instruments.

 

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One of the more popular instruments Forex traders like to trade is the Euro against the US dollar, or as it’s otherwise referred to; the EUR/USD. One reason is because both the Euro and the US dollar are two of the most popular and most often-used currencies worldwide. But what actually affects these currency prices? That’s something that many Forex traders are trying to figure out on a daily basis. That’s because they consider the factors that spark price movements to be the key to successful trades. In the following piece, we will explore the possible factors that could affect the EUR/USD.

It should be noted that there are very few events or instances that affect both currencies in opposite directions. There are only a few instances whereby an economic event would drive the US dollar up and the Euro down or drive the Euro up and the US dollar down simultaneously. Usually, economic events will cause one currency to lose or gain in value. There are however, some instances whereby both currencies are affected in the same manner.

Central bank decisions
The United States Federal Reserve, or the Fed, is the central bank of the United States. Once every six weeks or so, the Fed holds a meeting called the Federal Open Market Committee (FOMC). In this meeting, the Fed officials decide if they want to raise or lower rates – or to leave them alone. If they raise rates, the USD will often rise. If they lower them, the USD will often drop. The same affect can take place when the European Central Bank makes decisions. If it chooses to raise rates, the Euro will often rise against the USD and vice versa.

Political Events
After Italian Prime Minister Matteo Renzi said he would resign following a crushing defeat on constitutional reform in December 2016, the Euro has fell to a 20-month low against the US dollar. This is a classic example of a major political event affecting one of the two currencies. A major political event can potentially create a sense of instability in the European economy. When that happens, traders can lose confidence in the Euro and its value could potentially decrease.

Economic Data
Central banks usually make their decisions to raise or lower rates based on economic data. This means that if the European Union reports excellent GDP results, it’s possible that the markets will react bullishly towards the Euro. On the other hand, if the US government reports an increase in unemployment, the Dollar could react bearishly.

Conclusion
Although most of the factors listed above affect one of the two currencies at a given point in time exclusively, it can be enough to track either the USD or the EUR, it could offer helpful knowledge to traders who want to invest in this popular currency pair. Just remember to take these indicators with a grain of salt. There are many other factors that can impact the price of the EUR/USD and when it comes to currency fluctuations, you can bet your bottom dollar that nothing is guaranteed.

 

 

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The post What Could Impact the EUR/USD Price? appeared first on iFOREX Blog.

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We’re already a week into May and what Bloomberg refers to as a ‘Super Rally’ in stocks appears to still be in motion. That said, there are some possible indications of a weakening in the force that drove the US indices to new highs. And let us not forget, investors still remember the end of 2018 and the stock crash it brought. While the current uptrend might suggest a psychological effect of optimism by those who went through the bear market and survived, the shift could happen any moment.

In the beginning of the month, Fed Chair Jerome Powell appeared to be lowering expectations regarding another rate cut. The, US President Donald Trump in what is now a well-known act, tweeted about new tariffs on Chinese goods. The result was a drop in the S&P 500 – and $500 billion in value erased. This could be a temporary drop, of course, but the reality is that global economy is still facing uncertainty and the summer, with its usual decrease in liquidity, is just around the corner.

It also suggests a certain agitation in the market. If one tween can result in such a significant selloff, investors must still be sensitive and alert. Can you blame them? Between October and December 2018 (not too long ago), the S&P 500 crashed by over 20%, quickly obliviating over 18 months of gains.

Any indication of past performance of a financial instrument is not a reliable indicator of current and/or future performance of such financial instrument.

 

It’s not all about the ongoing trade war. Democratic politicians are now targeting policies that could affect the stock market harshly. For example, Bernie Sanders wants to essentially ban stock buybacks and Senator Kamala Harris stated she’ll try to repeal Trump’s 2017 tax overhaul, which include major tax breaks for large corporations.

There are still many positive signs and the short rout doesn’t put much of a dent in 2019’s advancements. Just look at the Nasdaq 100 – according to Bloomberg, the US index had climbed in 18 of the last 19 weeks (as of last Friday). This didn’t even happen in 1999 – a year when the index literally doubled in value.

Followers of the Halloween strategy could tell you all about the theory of “Sell in May and go away”, and while the month so far is still on in the bear zone, a strong month for stocks, the question in everyone’s mind is: When will the hype reverse?

 

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The post When will the Stock Rally Come to an End? appeared first on iFOREX Blog.

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Beijing has announced their intention to crack down on cryptocurrency mining in renewed efforts to eliminate an industry that is already suffering from dwindling investor interest. Is this the usual threat with no substance or is the cryptocurrency industry under real threat? Let’s take a closer look.

 

The new guideline

The government’s economic planning division added crypto mining to a long list of industries it seeks to eradicate citing “seriously wasted resources” or environmental pollution. The National Development Reform Commission, which is the government agency that compiled the list, is currently asking for the public’s feedback on the new protocol. They also implied that the ban can go into effect once it is issued. The time frame for consultations ends on May 7th.

China as a key player

The citizens of China used to be responsible for approximately 70% of Bitcoin mining. They were also responsible for about 90% of the world’s Bitcoin trades. However, the government has sought to diminish the cryptocurrency industry for about two years already. They claim that the cryptocurrency space produces speculative bubbles, fraud and wasteful energy consumption.

China has a relatively long history of waging war against the cryptocurrency sector. In 2017, the country outlawed initial coin offerings as well as demanding that local exchanges cease digital coin trading. Massive amounts of power are spent on Bitcoin mining. According to CNN, coal power was used extensively in Bitcoin mining through outfits in China. This could be at the very least, one of the reasons that the Chinese government requested local agencies make an effort to shut down miners. The NDRC’s latest protocol could hasten the process.

The mining exodus

The original reason that so many miners were located in China is due to the fact that electricity in China is so cheap. Responding to the latest guidelines, Bitmain Technologies, a privately owned company headquartered in Beijing, who builds application-specific integrated circuit (ASIC) chips for bitcoin mining, has begun relocating to North America. They are now shifting their mining activities to the US and Canada. BTC. Top, another Chinese cryptocurrency mining firm is establishing a new center in Canada.

 

Remember: At iFOREX you can trade Bitcoin, ripple and Litecoin CFDs, as well as hundreds of other CFDs on cryptocurrencies, currencies, indices, commodities, shares and ETFs.

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iFOREX Blog by Iforex Team - 2M ago

Lots has happened in the markets last week and it can be challenging for a trader to keep up. But fear not: The iFOREX Blog is here to the rescue. The following is a quick summary for your reading pleasure.

 

UK companies already paying for Brexit

Although the future of the Brexit is still undecided, the entire experience is already accumulating high costs for the UK’s biggest companies. Millions have been spent on contingency plans across the board in an effort to cover themselves in case of a no-deal split from the EU. This would be considered by many as a worst-case scenario.

Meanwhile, attorneys and consultants are cashing in on the situation while regulatory agencies and customs agents are becoming more heavily involved in the process.

One company that is emptying their pockets on Brexit provisions is the Royal Bank of Scotland (RBC). According to a company spokesperson, the bank is anticipating spending anywhere from 100 million GBP to 150 million GBP. HSBC has already spent $179 million on Brexit contingency preparations.  Hiscox spent $15 million. EasyJet spent 9 million GBP while pharmaceutical giant AstraZeneca estimates its Brexit costs to be approximately $40 million.

Netflix loses $8B, while Disney wins big

Disney has announced that they will be launching a streaming service, expected to be less expensive than Netflix. As soon as the news broke, Netflix lost up to $8 billion in market capitalization in only a few minutes of trading. The service is expected to launch in November at a cost of $7 per month. This poses a real threat to Netflix whose most widely used plan in the US is currently priced at $11 per month.

Netflix’s shares dropped by up to 4.69% on Friday. What happened to Disney shares? We’re so happy you asked. They rose – skyrocketed actually – 11.54%.

Any indication of past performance of a financial instrument is not a reliable indicator of current and/or future performance of such financial instrument.

Any indication of past performance of a financial instrument is not a reliable indicator of current and/or future performance of such financial instrument.

 

Draghi makes unusual statement

ECB President Mario Draghi made an unusual assertion regarding the independence of his colleagues in the US Federal Reserve. During IMF meetings in Washington DC on Saturday, Draghi noted that he was “certainly worried about central bank independence” and especially “in the most important jurisdiction in the world.”

This is a rare statement since central bank officials tend to refrain from commenting on matters relating to politics or economics of countries or states outside of their own jurisdiction.  

Trump supports another Kim meeting

US president Donald Trump has expressed support for another summit with North Korean leader Kim Jong Un. Calling relations with the North Korean dictator “very good”,  Trump has agreed to another meeting with Kim so long as the U.S. provides adequate terms for a deal before the year ends.

The US president added “I agree with Kim Jong Un of North Korea that our personal relationship remains very good, perhaps the term excellent would be even more accurate,” Trump tweeted on Saturday. “A third Summit would be good in that we fully understand where we each stand.”

 

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According to variosu reports and rumors, UK Prime Minister Theresa May’s cabinet might be readying for an overthrow. Their main demand is an interim Prime Minister that will complete the Brexit process on schedule.

Her deputy, David Lidington, is being asked to replace May until a formal election for the UK’s new leader takes place. If May refuses to step down, the parliament members are expected to confront her today, threatening her with resignations on a grand scale according to a report from the Sunday Times.

According to tweets by ITV reporter Robert Peston, veteran cabinet ministers won’t back calls to replace May immediately and prefer to wait until the Brexit proceedings get back on track. Peston explains that they want to first ensure that there will be either an amended, no-deal Brexit or a referendum. Once that happens, the PM can then be replaced.

Other ministers communicated with the Sunday Times saying that Hunt does not prefer Lidington. That’s because he worries that Lidington will enable the UK to turn into a permanent customs union member. Meanwhile, Gove has stepped up and is compiling a team built to usher in his leadership. But Sajid Javid, the UK’s home secretary does not support either Gove or Hunt and would support Lidington.

PM May has been encountering increased isolation both in London and in the European Union. She is constantly between a rock and a hard place. Half of her critics are pushing for a do-over Brexit referendum that they hope will result in a reconciliation rather than a divorce while the other half demand a faster, harder Brexit.

Although her most recent deal received approval in Brussels, she has twice failed at getting it authorized back home. Many parliamentarians were distraught following her televised address where she blamed the deadlock on the House of Commons. Meanwhile, the Conservative Party lawmakers did not take kindly to her pivot towards embracing a no-deal Brexit.

This report came on the heels of a mass protest whereby hundreds of thousands of pro-stay activists flooded the streets of London demanding another referendum.

Even if the Prime Minister were to step down, it might not lead to a general election. UK’s next general election is set to take place in May 2022 and anything can happen until then.

The Brexit process creates many challenges to the UK and the EU, at times creating rare volatility. For traders, such volatility means both risks and opportunities. Stay informed, stay active and trade CFDs such as the GBP, Euro, UK shares and indices and hundreds of other CFD instruments on the iFOREX Platform.

 
 

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After its meteoric rise to crypto prominence back in 2017, Bitcoin, the world’s original cryptocurrency, has by and large fallen off of people’s radar, including those of cryptocurrency aficionados. Could the first digital coin make a comeback? With many newer and more innovative cryptocurrencies hitting the market, the jury is still out on that question. In the meantime, here are just ten interesting, fun facts that you may not have known about Bitcoin.

1. The first product purchased using Bitcoin was pizza
May 22 is called ‘Bitcoin Pizza Day’ for a reason. On that fateful day back in 2010 Bitcoin was used for the first time to make an actual product… well… two products: A couple of pizza pies from Papa John. A man named Laszlo Hanyecz paid for his two pizzas using 10,000 BTC. It was the very first official documented purchase of products using bitcoin. When that exchange took place, 10,000 BTC was worth $41. Wanna guess how much it was worth in 2017? 196,799,600.

2. No one knows who invented Bitcoin (but there are educated guesses)
Bitcoin’s inventor goes by the name of ‘Satoshi Nakamoto’. There’s just one problem. No one knows who Satoshi Nakamoto is. And although the original white paper was published back in 2009, Nakamoto’s identity is a total mystery even until this day. Some conspiracy theorists claim that companies: Samsung, Toshiba, Nakamichi, and Motorola invented Bitcoin. Why? Because the first group of letters of each company’s name respectively spells out ‘Satoshi Nakamoto’.

3. Bitcoin use identity is difficult but possible to trace
Bitcoin’s blockchain is a permanent ledger that tracks every transaction ever made. Any transaction made cannot be erased. Even though anyone can see how many coins you own and when you made transactions, your identity can be hidden. But although you can conceal your identity, it might be possible for someone who is determined enough to find out who you are. That’s how the FBI eventually busted the owners of the Silk road.

4. Hold onto your key or lose your BTC
In 2013, a man named James Howells lost no less than 7,500 Bitcoins that he mined back in 2010 while cleaning his desk. That’s because while doing so, he accidentally threw away his hard disk containing his private keys. Let this serve as a lesson – no matter how many Bitcoins you own, they are completely worthless without your private key. In case you were wondering, in 2018 those 7,500 BTC were worth approximately $19.4 million. Ouch.

5. They’re not printed, they’re mined
Unlike fiat currency, Bitcoin is not printed. It’s mined on the blockchain network. Miners on the network are periodically rewarded with coins which then go into circulation. The power used to mine from the blockchain is 300 times greater than the world’s top five supercomputers combined.

6. There will never be more than 21M
Unlike some fiat currency, the supply of Bitcoin that can go into circulation is finite. There can never be more than 21 million Bitcoins in circulation. According to various assessments, the final bitcoin will be mined in 2140. After 2140, no more new bitcoins can be mined. They can only be exchanged.

7. You can buy stuff
The digital economy has come a long way since the purchase of those two pizzas back in 2010. That’s because today, Bitcoin can be used to purchase a wide array of products and services such as coffee at Starbucks, funeral items, space travel with Virgin Galatic, food orders, E-commerce with Purse.io and even a Tesla vehicle.

8. They can’t ban it
Bitcoin can be regulated, but never banned. That’s because anyone with a connection to the internet and a digital wallet can access Bitcoin. Several countries including Bangladesh, Bolivia, Thailand, and Vietnam have tried to ban the cryptocurrency but failed. Meanwhile other countries decided that if you can’t beat it, join it. That’s why places like Australia, Russia, Japan, and Venezuela decided to make Bitcoin an official legal tender. However, they are regulating it.

9. Bitcoin ‘upgraded’
Although Bitcoin was the original cryptocurrency with the most value, it is also considered by some people to be the most obsolete digital coin as well. In 2017, several of its developers made a more upgraded version of Bitcoin called ‘Bitcoin Cash’. These types of offshoots are known in the crypto space as ‘forks’.

10. Bitcoin inspired other digital coins
Bitcoin and its blockchain technology inspired the creation of all other cryptocurrencies. These include popular household names like Ethereum, Litecoin, Ripple and Dash. But it also includes lesser-known novelty cryptocurrencies like Dogecoin, Potcoin, and the Venezuelan Petro, whose president claims is backed by the socialist country’s oil, gas, gold, and diamond reserves.

At iFOREX, you can trade Bitcoin, Ethereum, Litecoin, Ripple, Dash and hundreds of other CFDs on shares, commodities, indices, shares and ETFs.

 

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Kraft Heinz has seen better days. A trifecta of unfortunate events compelled its share price to lose $16 billion in value in a single day of trading. A $15.4 billion write down on assets, profits that missed expectations and a subpoena from the SEC sent the food giant’s shares crushing 27% on Friday. It’s not easy seeing $16 billion in value lost in a single day and it left many unanswered questions regarding the future of the industry.

Any indication of past performance of a financial instrument is not a reliable indicator of current and/or future performance of such financial instrument.

 

Some speculate that this development is much deeper than just a lousy quarter for the company that is responsible for some of the world’s best-known food products such as Philadelphia cream cheese and Maxwell House coffee. Kraft Heinz was established in a 2015 merger by Warren Buffett’s Berkshire Hathaway and Brazilian investment firm 3G Capital who has a reputation of slashing costs and not necessarily promoting consumer brands. Kraft’s latest drop could suggest that the entire merger was a colossal failure.

In other words, 3G facilitated the merger with expectations of cutting costs for the company to manufacture its products such as Oscar Mayer hot dogs and Kraft’s iconic Macaroni and Cheese. But the huge write down on assets and their product’s trademarks like Capri Sun and Velveeta cheese as well as greater than expected supply chain costs, means that 3G’s entire cost cutting model could now be seriously questioned.

According to Ken Shea, an analyst at Bloomberg Intelligence, “The cost-cutting mentality is coming back to bite them. He went as far as suggesting that the company has to “get their house in order.”

You may or may not recall (if you don’t, we’re here to remind you), when the Kraft/Heinz merger was originally established, speculators wondered how so many dated brands like JELL-O and Grey Poupon would generate growth. Compounding this concern is current consumer trends showing greater favoritism towards healthier and more organic food products as opposed to the old sugary foods laced with preservatives. It’s all over the social arena: Healthy is trendy and while new type of consumers is looking for organic quinoa and free range everything, it’s unclear if the big companies have grasped the enormity of the change.

In 2013, when 3G assumed control of Heinz, it looked like everything was going to be smooth sailing – as easy as squeezing ketchup out of a bottle. The firm cut costs and produced industry leading profit margins. That was the intention when they merged with Kraft. Things went according to plan for about two years following the 2015 merger as they slashed expenses by $1.7 billion. As evident by the share price, many investors were impressed with the new company and shares climbed to $90 per share
.
But once that mountain was conquered, 3G and Buffett looked to merge with another major corporation in an effort to cut more costs and produce more impressive margins. So in 2017, Kraft Heinz tried to secure another merger, this time with London based consumer goods company, Unilever. If you were reading our wonderful articles back then, you probably remember we told you all about it. When news of the potential merger was made public, Kraft Heinz enjoyed a record high stock price. But ever since Unilever rejected the offer. Kraft Heinz shares have been bleeding out.

Shea explains that the fact that no major company seems to want to merge with Kraft Heinz is proof that the company has failed to boost sales, but these are just speculations of course. The latest write down caused a $10.34 loss per share. The subpoena was tied to their procurement practices and resulted in an increase of $25 million to “costs of products sold”.

If Buffett still has any faith left in Kraft Heinz, they might have a fighting chance of getting some sort of additional merger through. But with their stock prices plummeting to lows not seen in years, it may be difficult to find a company bold enough to agree to an acquisition. In the meantime, Kraft Heinz states it is optimistic about returning to profit growth in 2020.

We hope we don’t need to tell you though that this story could be a sign for the entire food and beverage industry. There are several massive corporations that have built their fortune be selling food products that are, in modern time, somewhat falling out of grace. In simple words: Consumers’ preferences are rapidly changing, and it’s now left to see if the food industry’s giants can change with them.

 

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The post Kraft Heinz’s Report Leaves a Bad Taste appeared first on iFOREX Blog.

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iFOREX Blog by Iforex Team - 4M ago

2019 is already well on its way, and for some leaders, it looks like an extra-challenging year. Let’s take a look at 3 people who have plenty of reasons to dread the months to come.

Bank of England Governor Mark Carney
Poor Mark Carney. If you asked anyone a few years back, they would probably tell you that being the BoE Governor was an awesome gig. This year though, he is facing a challenge that no Governor has faced before him. No one knows how the UK economy will look like if the Brexit will take place in the March deadline without a deal, but it’ll be Mark Carney who will need to mitigate the damage.

Will the GBP crash? Will the British financial system shatter? How will the disruption to the supply chain, transport and changed taxation affect the market in the long run? It’ll be the BoE’s job to decide how to respond, whether to use interest-rate cuts and how to help the currency and the banking system.

And many people are against him – accusing him of spreading anti-Brexit fears. If he’s very lucky, the Brexit will pass smoothly (that option is still on the table) and after two extensions of his term, he could quietly retire in 2020. What do BoE governors do after they retire? Fishing, maybe – we night write to him and suggest it.

GBP/USD

 

Snap CEO Evan Spiegel
What can we say about Snap Inc that hasn’t already been said? All you need to do is look at the share – surging and plunging on intervals to realize that Evan Spiegel has a lot of work on his hands. To be fair, a lot of what’s wrong with Snap today is his own doing.

Think we’re making groundless accusations? Exhibit A: Spiegel was the one insisting that Snapchat will undergoes a redesign that made everyone angry: Users and advertisers. Snap reported two quarters of declining number of users, and do you remember the much-awaited Snap IPO? Just look at the current share price.

Meanwhile, Facebook copied one of Snap’s most popular features – ‘stories’, and Mark Zuckerberg said in October that it’s posed to be more popular than the news feed. If Snap expects to end 2019 on a high note, it desperately needs a different strategy and a fresh idea – preferably more than one.

Snap

 

Tesla CEO (among other things) Elon Musk
You know we love to bring you news of the relentless, ambitious, addicted-to-Twitter Elon Musk. 2019 could be an especially trying year for him – which makes it not much different than the last 5. After paving a road through car production nightmare and landing Tesla’s Model 3 in eager consumers’ hands, he still faces many challenges. One of them, as his tweet about making Tesla private suggests, is to stop tweeting every thought that happens to go through his mind while battling the U.S. Securities and Exchange Commission and his own board. Like, Boring Inc. was a fun idea, sure, but really – could you not just sit still for a second? You know, ponder things for a few minutes?

Tesla still needs to deliver the $35,000 version of the Model 3 – and many of them, if the company wants any shot of sustaining profitability – and there’s the change in government incentives for electric car buyers to consider. The $7,500 federal tax credit has been cut in half as of January 1st and in July, it expected to be cut in half again.

Tesla also has a $920 million convertible bond looming on March 1st, and to get investors to exchange that for shares, Tesla will need to get the share price way up (around $360 as Bloomberg informs us). Think it’s an easy enough job? Just look at what the share price has been up to in recent year and you’ll see why 2019 could be – again – make or break time for Elon.

Tesla

 

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iFOREX Blog by Iforex Team - 4M ago

After the Federal Aviation Agency (FAA) squashed Amazon’s hopes of testing out autonomous drones for delivery by other companies, it looks like the battle for new, innovative autonomous delivery methods is still a top priority.

It is now being reported that both Amazon and GM are currently in talks to invest in electric truck manufacturer Rivian Automotive LLC. Various sources are reporting that the deal could give Rivian a value of $1-2 billion – but nothing is final or official yet of course.

Rivian, a start-up headquartered in Michigan, is involved with manufacturing both sport utility vehicles (SUVs) and pickup trucks. The concept vehicles were on display and debuted at the Los Angeles Auto Show last year, where all the industry’s bigshots like to make an appearance and boast their future plans. The always-informed Bloomberg tells us that a source close to the matter said that a deal could be reached as soon as Friday.

With the Chevy Bolt, GM could be on the cutting edge of affordable electric vehicles that are expected by many to rival competitors like Tesla. But as a backer of Rivian, GM can now also position themselves as the first to market with regards to emissions-free pickup trucks and SUVs. This move can potentially offset their competition.

Jeff Schuster, who is the senior vice president of forecasting at researcher LMC Automotive, said that “Rivian is being cast in the same light as Tesla, a startup that’s outside the inner circle of the auto industry, and that’s appealing to GM.” He continues by saying that while GM has the technology and base of pickup clients to build its own electric pickup, it’s missing Rivian’s separation and image.

Talks between the three companies was originally reported by Reuters.

Just like Tesla, Rivian bought a vehicle assembly plant for peanuts from a different car manufacturer. In 2017, the start-up purchased a factory from Mitsubishi for just $16 million. According to Rivian, their R1T model pickups will have the ability to reach 60/mph in just 3 seconds and can tow 11,000 pounds. If all goes as planned, the vehicles are set to roll out in 2020.

Amazon can benefit from electric vehicles as they can start and finish journeys at various charging stations without fear of the battery expiration.

Electric trucks aren’t the only mode of transportation Amazon is looking into – and no, we’re not talking about a new kind of drones. In 2018, Amazon unveiled a delivery service partner program whereby 3rd party contractors could start their own business by employing drivers and leasing vehicles to deliver goods.

After the program was announced, Amazon boasted more than 100 new businesses throughout the United States delivering packages for Amazon. The recruiting process is still ongoing.

It’s likely that Amazon’s rapid growth has put pressure on the Seattle based corporation to search for delivery partners outside of the usual avenues like the U.S. Postal Service, FedEx Corp and United Parcel Service Inc (UPS) .

If the rumors turn out to be exact, Rivian would be Amazon’s second investment in an automotive company. The first was their participation in a $530 million round of funding for Aurora Innovation, a start-up in the autonomous vehicle space.

 

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The post GM and Amazon Go Electric? appeared first on iFOREX Blog.

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