Patrick Boyle On Finance

Send us a textIn Europe’s battle against inflation, new villains have emerged: Beyoncé and Taylor Swift! Last month, as Beyoncé kicked off her world tour, fans flocked to Sweden from around the world for the shows, pushing up prices for hotel rooms. This could explain some of the reason Sweden’s inflation rate was higher than expected in May according to Michael Grahn, an economist at Danske Bank....

Send us a textIn March 2023 Bernard Arnault, the chairman and CEO of luxury fashion giant LVMH overtook Elon Musk to become the wealthiest person in the world. He is the only European in the list of top 10 richest people in the world. His wealth has skyrocketed with the massive growth in LVMH’s share price. And it's not hard to see why they’re so profitable. It’s easy to make money when you can se...

Send us a textWhen the Biden administration passed the Inflation Reduction Act and the Chips and Science Act for clean energy and tech last year, Americas trade allies in Europe and Asia were surprised. Now they are scrambling for ways to catch up. Are western economies in a war of subsidies with each other and China over technology and green infrastructure? Patrick's Books:Statistics For The Trad...

Send us a textOver the last three years we have seen the biggest car price increases in history. Last year the average cost of a new car in the United States was forty-seven thousand dollars and the average used car price today is just under thirty thousand dollars. Car buyers today aren’t just faced with higher car prices, the average interest rate on a new car or truck loan has reached just unde...

Send us a textIn The UK, September 16, 1992, is known as Black Wednesday, the day when speculators including George Soros and Stanley Druckenmiller "broke the pound." This expression is used to describe the moment in time where market forces coalesced to force the British government to exit the European Exchange Rate Mechanism (ERM) by removing its currency from that agreement. Joining the ERM was...

Send us a textRising mortgage payments are squeezing the finances of millions of borrowers in Britain, threatening to undermine household spending and the broader economy. The dream of a soft landing that would have the Bank of England squeeze out inflation without condemning the country to a recession looks increasingly remote. Inflation has been more stubborn than expected and is forcing the cen...

Send us a textAside from losing over 1.13 million people, the United States is thought to have lost billions of dollars in pandemic relief fund fraud, according to the most recent Associated Press analysis, published this week. The analysis discovered that fraudsters took more than US$280 billion in relief cash, while another $123 billion was lost or misspent.“Combined, the loss represents 10 perc...

Send us a textThis week, the US Securities and Exchange Commission (SEC), filed lawsuits against Binance and Coinbase, two of the world’s biggest crypto exchanges, on which investors buy and trade a large offering of cryptocurrencies. The SEC’s main allegation against Coinbase is that it’s running an unregistered securities exchange — like if the Nasdaq independently operated without any regulator...

Send us a textWe’ve all heard the story of how a lottery win, which at first may appear to be a great blessing slowly reveals itself to be a curse. In today's video we look at what happens to people after they win the lottery. Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvC...

Send us a textTurkish voters return to the polls this weekend to choose a president. Before the first round of the election, polls suggested that voters were evenly divided between the two biggest parties. However, Erdogan’s unexpectedly strong first round has put pressure on the Turkish lira and knocked other Turkish assets ahead of this weekend’s runoff vote. The official annual inflation rate i...

Send us a textThe next big potential risk to the U.S. economy may be lurking in office buildings across the country's downtown districts. With so many people still working from home, companies are cutting back on office space which threatens to unleash even more headwinds for the U.S. economy. What is going wrong in the commercial real estate market, and how might we be affected? Patrick's Books:S...

Send us a textThe three-decade era of globalization risks going into reverse according to company executives and investors. In this video we look at the economic evidence in a paper called Is the Global Economy Deglobalizing? by Pinelopi Goldberg of Yale University and Tristan Reed of The World Bank. Here is a link to the full paper: https://www.nber.org/papers/w31115Patrick's Books:Statistics For...

Send us a textLegendary corporate raider and activist Carl Icahn found himself on the wrong side of a familiar battle this week when the short selling investment firm Hindenburg Research took aim at Icahn’s publicly traded holding company, alleging in a new report that Icahn Enterprises L.P. (IEP) is overstating the value of its private asset portfolio, and that its publicly traded stock units–85%...

Send us a textThe FDIC took possession of First Republic Bank on Monday, resulting in the third failure of an American bank since March. JPMorgan Chase, already the largest U.S. bank by several measures, emerged as the buyer in a weekend auction for First Republic. It will get all of the ailing bank’s deposits and a “substantial majority of assets.”Patrick's Books:Statistics For The Trading Floor:...

Send us a textThe BRICS nations have been discussing the idea of creating a new currency to facilitate overseas trade. The idea was put forth by Russia as it faces economic sanctions from the West over its invasion of Ukraine. Meanwhile, some of the BRICS countries have already ditched dollar and are now trading in their local currencies. Brazil and China signed an agreement last month to abandon...

Send us a textApple recently announced its latest financial product in partnership with Goldman Sachs — a savings account designed for Apple Card users. The high-yield savings account comes with a 4.15% interest rate and comes with no fees and no minimum deposit or minimum balance requirements. Plus, it has some extra benefits for users like automatic deposits of Daily Cash earned with the Apple C...

Send us a textThe term “Finfluencer” refers to a person who by virtue of their popular or cultural status has an outsize impact on investor decisions through social media influence. According to Sue Guan of Santa Clara University, a variety of finfluencers exist in today’s markets, ranging from simple celebrities that draw people's attention like Kim Kardashian to corporate personalities like Elon...

Send us a textDisgraced Frank founder Charlie Javice has joined the likes of Elizabeth Holmes and Sam Bankman-Fried on a growing list of founders to be lavished with honors by the financial news outlet Forbes – only to later face criminal fraud charges.“The Forbes 30 Under 30 have collectively raised $5.3B in funding,” tech investor Chris Bakke tweeted on Tuesday. “The Forbes 30 Under 30 have also...

Send us a textJamie Dimon, the chief executive of JPMorgan Chase, warned that the banking crisis 'not yet over' in an annual letter to shareholders just weeks after the collapse of three US banks. He said he didn't expect the turmoil to lead to a global crisis like in 2008, noting that it involved "involved fewer players and fewer issues". But he warned the impact would linger. Patrick's Books:Sta...

Send us a textChina has significantly expanded its bailout lending as its Belt and Road Initiative blows up following a series of debt write-offs, scandal-ridden projects and allegations of corruption according to a new paper "China as an International Lender of Last Resort" by Sebastian Horn of the World Bank; Brad Parks, a research professor at William & Mary University; Harvard’s Carmen Rei...

Send us a textAfter a weekend of intense negotiations, Swiss authorities brokered an emergency deal to sell Credit Suisse the troubled 167-year-old investment bank to its Swiss rival, UBS. A $54bil lifeline from the Swiss National Bank last week failed to stem the crisis facing Credit Suisse following Silicon Valley Bank’s collapse: its share price collapsed and the flight of deposits accelerated....

Send us a textLet's discuss the ongoing controversy at Credit Suisse, if they are like Silicon Valley Bank and what this means for depositors and investors! Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://amzn.to/3cjsyPFCorporate Finance: https://amzn.to/3fn3rvCPatreon Page: https://www.patreon.com/PatrickBoyleOnFinanceVisit our w...

Send us a textA number of things went wrong at Silicon Valley Bank over the last days, weeks and years, there were huge failures of risk management. The risk manager would have some tough questions to answer, except that it appears that they didn’t have a risk manager on staff for almost nine months of the last year. There were issues tied to the different regulations applied to community banks wh...

Send us a textBanks don’t fail very often, and bank runs appear to be mostly a thing of the past. The last bank failure in the United States happened in 2020 when a small bank in Kansas failed. That two-year streak was broken this Wednesday with the failure of the crypto focused bank Silvergate, and on Friday with the failure of Silicon Valley Bank. Patrick's Books:Statistics For The Trading Floor...

Send us a textLet’s talk about Artificial Intelligence, what it is, how it works and where it might be taking us. We’ll try and see if as an investor you should worry about missing the boat on AI, and as an individual should you worry about losing your job to these new technologies? Patrick's Books:Statistics For The Trading Floor: https://amzn.to/3eerLA0Derivatives For The Trading Floor: https://...