Amazon.com, Inc. (AMZN)
“There are not many markets of this size and potential globally. There is only the US, China and India in terms of the size of the retail industry. Amazon is already leading in the US and they’re out of China now. That leaves only India.”
Tesla, Inc. (TSLA)
“They’re starting to focus on the actual business and the business has completely collapsed. Demand has declined very significantly in the U.S.,” Hoffman said. “And even when people knew the units number, because they disclosed that on April 3, the company still missed the revenue number by 11% because the pricing has gone down so much to move metal.”
“To be perfectly frank with you, Tesla’s balance sheet right now, by basic financial ratios like the quick and the current ratio, which any first year finance or accounting student learns, they’re in worse shape than General Motors was six months before bankruptcy,” Hoffman stressed.
The most likely component – a reprieve on tariffs – would only alleviate short-term US trade deficits through China’s promise to purchase more American goods.
Thornier issues remain to be resolved: the need for China to protect intellectual property, the end to its forced technology transfers, other non-tariff market restrictions. Above all, of course, is whether China will actually follow through on its pledges in any agreement the two sides strike.
U.S.-China Talks to Resume With Significant Issues Unresolved (April 29, 2019)
Few if any of the world’s largest financial companies dominate a single market quite like HSBC does in Hong Kong, a city of 7.5 million people that accounted for roughly 60 percent of the bank’s pretax income in 2018. That makes HSBC a juicy target for the handful of “virtual” lenders vying to shake up the commercial hub’s banking market after securing first-of-their kind approvals last month.