Exchanges

Shares of Trump Media plunged to a new low Thursday — the day that former President Donald Trump and other major investors were finally allowed to sell their shares in the parent company of social media platform Truth Social.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1q_R_Oc_I_a9436ab45e.jfif" alt="AA1qROcI.jfif"></figure>The company closed down nearly 6%, at $14.70, as the six-month lockup period preventing insiders from selling the stock expired after Trump Media merged with blank-check company Digital World Acquisition Corp to take it public.Trump, the majority owner with a 57% stake now valued at around $1.7 billion, said last week that he has no intention of selling his position — a move that would effectively devalue the stock.The Republican presidential nominee and other large investors, who collectively own more than 20 million shares, were free to sell the stock after the closing bell. Trump Media debuted on the Nasdaq to great fanfare in March, with the share price soaring to more than $60.But It has suffered volatile swings during his run for the White House as incumbent Joe Biden dropped out and Kamala Harris got the Democratic nomination.The latest polls show Trump and the Vice President are virtually tied in the major swing states.Trump launched Truth Social in February 2022 after he was banned from major sites such as Facebook and the platform formerly known as Twitter following the Jan. 6 attack on the US Capitol.He’s since been reinstated to both — and endorsed by X owner Elon Musk — but he still mostly posts on his own platform.While Truth Social sought to capitalize on the outrage over Trump’s bans, it has struggled gaining traction.The platform had less than 1 million daily active users as of April, according to data from Similarweb.

Shares of Trump Media plunged to a new low Thursday — the day that former President Donald Trump and other major investors were finally allowed to sell their shares in the parent company of social media platform Truth Social.

Trump Media stock sinks as former president can finally sell his shares

Will Tesla Stock Split in 2024? No, Tesla CEO Elon Musk and his Board of Directors have not announced any plans for a Tesla stock split in 2024.But the maverick CEO of SpaceX and Starlink could send a tweet anytime, keeping Tesla stock split rumors alive, so it is worth keeping abreast of the situation.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/Tesla_Stock_Split_1_jpg_8b2ce62173.webp" alt="Tesla-Stock-Split-1.jpg.webp"></figure>Why Doesn’t Tesla Split Its Stock? TSLA Stock Price Tesla (TSLA) stock is well down from all-time highs; thus, the impetus to make shares more affordable is not quite there.If Tesla’s current stock price isn’t viewed as prohibitively high, there might not be a strong need for a split. In other words, Tesla may believe the price is already within reach for most investors.That’s not to say a Tesla stock split date could never be announced at these prices. Historically, management has tried to bump shares out of a slump by conducting stock splits.Management at Tesla may feel that its current stock price accurately reflects its market value, and therefore doesn’t see the necessity of a split.A higher stock price can convey stability to investors, and Tesla may want to preserve that perception.Earnings Tesla’s 2023 annual earnings paint a mixed picture.While revenues increased by 24% year-over-year from 2022 to 2023, reaching $81.5 billion in 2023, its net profit declined. In 2022, Tesla had a net profit of around $12.6 billion, but in 2023, that figure dropped to approximately $10.5 billion, reflecting a 17% year-over-year decrease in profits. This drop in profitability comes from price cuts on its vehicles to stay competitive, squeezing margins. With profits down and costs rising, Tesla’s current financial position might not justify another stock split, which usually signals strong confidence in future growth.Elon Musk’s Distractions It seems fair to assume that a Tesla stock split couldn’t happen without CEO Elon Musk’s approval. However, Musk appears to be preoccupied with his other ventures, from Starlink to X Corp (formerly Twitter) to SpaceX and Neuralink.To his credit, he appears to be juggling all his ventures with sufficient verve – but a Tesla stock split is probably far down the pecking order of Elon Musk’s priorities.More broadly, if Tesla’s top team doesn’t see any major strategic benefits from a split at this time, it might choose not to proceed with one. Without a clear advantage, they could prefer to maintain the current structure rather than change it unnecessarily.EV Market Outlook While the trend towards electrifying vehicles still looks to be intact, the industry is not without uncertainties. For one, the value of used Teslas has been falling, pointing to potentially falling demand as well as government discount schemes to buy new EVs, which distorts the incentives behind market pricing.Tesla’s previous stranglehold over the EV market has also been waning as the major car manufacturers catch up. There is high demand for hybrids, and new low-cost EV competitors, mostly from China, are bringing down the average price.What Does This Mean for Investors? Long-term Tesla shareholders will have preserved the memory of TSLA shares north of $400 and would likely want to see a return to those levels, something a stock split closer to $200 would delay.Tesla could theoretically do a 2-for-1 stock split at ~$200, bringing the shares back to $100 – a nice round number and affordable to most potential investors. That would mean that the adjusted Tesla record high would not be $409.97 but rather $204.99.The possible downside of such a move would be psychological. Long-term shareholders, while understanding that the all-time high price has adjusted post-split, might still want to see the shares rise over $400—and over the pre-split record high.

But the maverick CEO of SpaceX and Starlink could send a tweet anytime, keeping Tesla stock split rumors alive, so it is worth keeping abreast of the situation.

Will Tesla Stock Split in 2024 After TSLA Bounces Back?

Trump Media &amp; Technology Group&nbsp;(DJT&nbsp;-6.60%)&nbsp;has been one of the most polarizing stocks to own this year. When the optimism surrounding Donald Trump's chances of winning the presidential election was high, the stock was doing well. But when the outlook changed, the stock quickly went into negative territory.What's sometimes forgotten is that there's a real company behind the stock, not just the former president. Trump Media may not be much of a business right now, but its fundamentals are still the ultimate reason why investors should consider investing in the stock or not.However, the company's future is uncertain, and a lot seems to be hinging on whether the former president gets elected this year. Is this stock too risky to own? Could it ultimately be headed to $0?<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/a573cfd2ea868773a9dc3f626cf1480f_a3213d9723.png" alt="a573cfd2ea868773a9dc3f626cf1480f.png"></figure><h2 style="margin-left:0px;">It has the classic signs of a meme stock</h2>Trump Media generates minimal revenue, and the social media platform Trump Social isn't exactly taking off and giving other social media stocks cause for concern. As is the case with other&nbsp;meme stocks, factors outside of the company's core operations impact its share price, not its fundamentals.When President Joe Biden announced he was dropping out of the election in July, shares of Trump Media stock proceeded to fall, as speculators likely saw worsening prospects for Trump winning against Democratic candidate Kamala Harris than they did against Biden. Since that announcement on July 21, Trump Media has lost half its value.Another feature of a risky meme stock is that there are often plenty of&nbsp;short-sellers&nbsp;betting against it. The stock has averaged a fairly high short interest of more than 7% this year, and that percentage has been rising in recent weeks.&nbsp;This opens the door to a possible&nbsp;short squeeze&nbsp;if speculators become more bullish on Trump's chances, which would add to the overall risk and volatility that may come from owning the stock.<h2 style="margin-left:0px;">The fundamentals are what matter, and they aren't great</h2>Trump Media doesn't report user metrics -- likely because they aren't all that impressive. After all, they could help give investors a reason to buy the stock if they were good. At least they could provide investors with the hope that there's potential for the platform to draw interest from advertisers down the road, even though the business isn't profitable today and revenue isn't strong,I always look at the information a company leads with when it reports earnings, as that can help indicate what it thinks is most important for investors to focus on. For an unprofitable company, it might be user growth or some other metric to suggest it's doing well, such as shrinking losses.In Trump Media's August press release announcing earnings, the top bullet point was that it had $344 million in cash and no debt on its books. That's not exactly exciting for&nbsp;growth investors. Simply having a lot of cash doesn't make a business worth investing in, especially if it's not generating much revenue and burning through money -- as is the case with Trump Media.An average investor who's looking for a quality stock would likely pass on Trump Media stock because there isn't much substance behind it. At this point, it's largely a speculative play.<h2 style="margin-left:0px;">Is the stock heading to $0?</h2>Trump Media stock could rally if speculators believe Trump's prospects for winning the upcoming election look good and become more bullish on his chances. That would still be a short-term reason to bet on the stock -- not to&nbsp;invest in it for the long term.A short-term move fueled by election hopes wouldn't change the fundamentals, which are what matter most for investors. If the business isn't demonstrating meaningful growth in its operations, isn't profitable, and isn't generating positive cash flow, there's little reason to expect the stock to go anywhere but down.These are the reasons I think Trump Media stock ultimately will get to $0. It just may be a matter of how long until it gets there and what path it takes.

Trump Media & Technology Group (DJT -6.60%) has been one of the most polarizing stocks to own this year. When the optimism surrounding Donald Trump's chances of winning the presidential election was high, the stock was doing well. But when the outlook changed, the stock quickly went into negative territory.

Is Trump Media & Technology Stock Heading for $0?

Stock splits are essential to a functional stock market even though they don't affect the value of a company. Think of a company's market cap (value) as a pie or a pizza, if you prefer. All the split does is create more slices; it doesn't make the whole any larger. However, they are still essential, especially for those who aren't billion-dollar hedge funds. Microsoft (MSFT 0.17%) has split its shares nine times, most recently in 2003. A single share would cost $123,800 today without stock splits. That price is out of reach for many, if not most investors to buy a single share. And, as you can see below, the price is towering again.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/3cdfca261af7d8e570b42af33c63039b_873c77163a.png" alt="3cdfca261af7d8e570b42af33c63039b.png"></figure>Splits also indicate that a company is booming, since the share price must have grown significantly. Unlike Microsoft, ServiceNow (NOW 1.54%) has never split; however, with share prices of $879, this could change soon.Here is why these companies are having tremendous success.Microsoft The release of the generative AI chatbot ChatGPT pushed the AI race to the center of society's and investors' consciousness. When Microsoft made a multibillion-dollar investment in its creator, OpenAI, it was full throttle for tech companies to catch up. ChatGPT integrates with Microsoft Bing, which could allow Bing to steal some market share from Alphabet's Google Search, which generated $95 billion in revenue in the first half of 2024. Even small inroads for Bing will generate billions in revenue.Another major AI product is Microsoft Copilot. Copilot integrates into several products, answers questions, summarizes or generates text, creates images, codes, and analyzes data. According to Microsoft, 60% of the Fortune 500 use Copilots, a staggering figure given the technology's newness. These innovations drove sales growth of 16% in fiscal 2024 to $245 billion. Operating income grew 24% to $109 billion, a terrific 45% margin.Microsoft stock trades at 36 times earnings, which is higher than its three-year and five-year averages of 33; however, the price-to-earnings (P/E) ratio drops to 33 on a forward basis. Due to the lofty valuation, investors shouldn't expect the price to skyrocket overnight. Still, Wall Street can justify the current price based on Microsoft's AI opportunities.ServiceNow ServiceNow and Microsoft have partnered for years on many technology initiatives. The latest integrates ServiceNow's AI product, Now Assist, with Microsoft Copilot. Without boring you with too many technical details, the Now Assist product increases productivity in areas like human resources, IT support, customer service, and others. For example, Now Assist saves customer service agents time by summarizing a customer's recent interaction so the agent doesn't have to go through the transcript, allows agents to search vast databases quickly to find answers faster, etc. The increased productivity is invaluable for companies in a highly competitive world.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/download_317e644b63.avif" alt="download.avif"></figure>Around 85% of the Fortune 500 use ServiceNow. The chart below shows just how much ServiceNow's customer base has grown. Each year that a customer adopts ServiceNow is represented by a different color, and the expansion shows the increased revenue from these customers over time.ServiceNow is in a higher growth phase than Microsoft ($2.6 billion in sales on 22% growth last quarter), so sales rather than bottom-line earnings better represent its valuation. Its current price-to-sales ratio is 18, which aligns with its 5-year average. Looking forward, the company expects 2024 subscription sales of $10.5 billion, and $15 billion in 2026. This means the stock price could conceivably return nearly 50% through 2026 by maintaining the same valuation.Microsoft and ServiceNow are making huge moves in AI, and with soaring stock prices, splits may be on the horizon.

Stock splits are essential to a functional stock market even though they don't affect the value of a company. Think of a company's market cap (value) as a pie or a pizza, if you prefer. 

Stock-Split Watch: 2 Artificial Intelligence (AI) Companies That Look Ready to Split

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently. There have been a couple of trends driving the sell-off including concerns about gross margins, some supply chain issues, and the company’s delay in filing its Form 10-K with the SEC, after short-seller, Hindenburg Research accused the company of irregularities with its accounting. Despite these setbacks, the stock remains up by about 7x from 2022, driven by surging demand for server systems fueled by the generative artificial intelligence wave. However, with these challenges, the stock could decline further, possibly touching around $200 per share.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/960x0_8_eed079d9cd.webp" alt="960x0 (8).webp"></figure>Super Micro stock trades at just about 18x trailing earnings and 12x forward earnings at the current price level. Although this isn’t a very high multiple, there’s a very real possibility that Super Micro’s earnings could decline after a couple of years of stellar growth. Moreover, the uncertainty relating to compliance-related matters could weigh on the stock. This analysis outlines how the stock could decline by about 50% in the next few years by looking at the company’s potential revenue growth, net margins, and price-to-earnings multiple. While this article spotlights the downside case for the stock, the upside case can be seen here: Can Super Micro stock fare better than AI bellwether Nvidia?SMCI Rallied Big But Witnessed Considerable VolatilitySMCI stock has generated better returns than the broader market in each of the last 3 years. Returns for the stock were 39% in 2021, 87% in 2022, and 246% in 2023. However, the stock has also declined by roughly 60% since March 2024 making it a relatively volatile bet. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, is considerably less volatile. And it has outperformed the S&amp;P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment around rate cuts and multiple wars, could SMCI see a strong jump?Revenues Could Fall As Server Investment Cycle TurnsSuper Micro Computer is a data center solutions provider, which sells server systems, server boards, storage, networking solutions, management software, and installation and maintenance services. SMCI is projected to grow its revenue by close to 90% in FY’25 (the current fiscal year) to levels of about $28 billion, per consensus estimates, as data center-related spending remains strong, with tech companies continuing to invest in AI and accelerated computing capacity. However, the current euphoria might be masking the fact that the server market can, in fact, be cyclical and things could take a turn for the worse.The underlying economics of the end market for the broader AI ecosystem remain weak, and most of AI customers remain loss-making. Large language models are also very expensive to build and train. We could very well be in a phase where companies are seeing so-called FOMO, compelling them to invest in AI just because their rivals are doing so, without a thought about the return on investments. As shareholders seek better returns, we could see capital spending cool off, impacting the likes of Super Micro. Moreover, most AI companies are going through the compute-intensive training phase at the moment, and there’s a real possibility that demand for computing power and servers could cool off once these companies move to the less compute-intensive deployment phase. The server market is also very commoditized. While Super Micro does have some competitive advantages, given that its products are seen as being more customizable, the company’s lead in these areas is hardly insurmountable and competition could mount considerably. Considering a potential cooling of demand and higher competition, if SMCI’s revenues decline by about 15% each year over FY’26 and FY’27 revenues could stand at $20 billion by FY’27. Looking for more companies that can benefit from increased digitization and AI deployment?Combine this weaker-than-expected revenue growth with the possibility that Super Micro’s adjusted net margins (net income, or profits after all expenses and taxes, calculated as a percent of revenues) can decline a bit. Although margins expanded from 6% in FY’22 to about 9% in FY’24, driven by higher economies of scale, they could decline meaningfully if sales drop and competition mounts reducing the company’s volumes and pricing power. Moreover, SMCI has seen its gross margins face some pressure in recent quarters as it sells a higher mix of liquid-cooling systems, which are proving expensive to produce and this trend could also continue. Considering this, it may be reasonable to assume that Super Micro’s adjusted net margins could decline from an estimated 9% this year to about 6.5% by FY’27, or about 0.72x current levels.Valuation Multiple Could ContractIf revenues decline by about 0.7x between FY’25 and FY’27, with margins contracting by about 0.72x over the same period, this would imply that earnings could fall by about 0.5x. Now if earnings fall by 50%, the P/E multiple is bound to take a hit as investors re-assess SMCI’s overall long-term earnings growth prospects. If SMCI’s P/E multiple gradually shrinks from a multiple of about 12x based on FY’25 earnings presently to about 10x, this could translate into a decline in SMCI stock to levels of under $200 per share by 2027. What about the time horizon for this negative-return scenario? In practice, it won’t make much difference whether it takes 2 years or 5 - if the competitive threat plays out and SMCI sees the demand cycle turn, we could see a correction. And a sizable one at that.&nbsp;

Super Micro Computer stock (NASDAQ: SMCI) has seen a big sell-off in recent months, falling from highs of nearly $1,200 per share in March to about $445 presently. 

A Scenario Where Super Micro Stock Could Fall 50%

NEW DELHI: The Nifty Auto index traded negative around 10:08AM(IST)on Friday in a weak market.Bosch Ltd.(up 2.23 per cent), Tata Motors Ltd.(up 1.2 per cent), MRF Ltd.(up 0.62 per cent), Apollo Tyres Ltd.(up 0.38 per cent) and TVS Motor Company Ltd.(up 0.35 per cent) were among the top gainers.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/AA_1qu_Atz_f13ab4fa2f.jpg" alt="AA1quAtz.jpg"></figure>Samvardhana Motherson International Ltd.(down 2.29 per cent), Mahindra &amp; Mahindra Ltd.(down 0.65 per cent), Maruti Suzuki India Ltd.(down 0.49 per cent), Eicher Motors Ltd.(down 0.44 per cent) and Hero MotoCorp Ltd.(down 0.18 per cent) were the top losers on the index.The Nifty Auto index was down 0.02 per cent at 25774.8 at the time of writing this report.Benchmark NSE Nifty50 index was down 51.91 points at 25337.0, while the BSE Sensex was down 164.54 points at 82798.17. Among the 50 stocks in the Nifty index, 19 were trading in the green, while 31 were in the red.Shares of Vodafone Idea, YES Bank, IDBI Bank, Tata Steel and Suzlon Energy were among the most traded shares on the NSE.Shares of KDDL Ltd, Edelweiss Financial, Servotech Power Syst, Bharti Hexacom and Campus Activewear hit their fresh 52-week highs in today's trade, while Stampede Cap(DVR), Viji Finance, Alps Industries, Rollatainers Ltd and Nila Spaces hit fresh 52-week lows in trade.

Bosch Ltd.(up 2.23 per cent), Tata Motors Ltd.(up 1.2 per cent), MRF Ltd.(up 0.62 per cent), Apollo Tyres Ltd.(up 0.38 per cent) and TVS Motor Company Ltd.(up 0.35 per cent) were among the top gainers.

Stock market update: Nifty Auto index falls 0.02% in a weak market

Perhaps no stock has risen more so fast than Nvidia (NVDA 8.15%). At one point, it was up by about 1,000% in less than two years, briefly taking its market cap north of $3.2 trillion before it pulled back.However, the run-up in the company's stock was so extreme that even its stellar earnings report for the second quarter of fiscal 2025 (ended July 31) failed to prevent a significant sell-off in its stock. Between the company's likely overvaluation and a momentum shift, investors should probably avoid the semiconductor stock for the remainder of 2024.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/screenshot_1726131135_c823c63407.png" alt="screenshot_1726131135.png"></figure>The state of Nvidia In light of the recent pullback, investors need to exercise some perspective. The scorching demand for AI chips and Nvidia's considerable lead in this niche of the chip industry arguably make it the premier semiconductor stock.The growth in the AI chip market has been so explosive that Allied Market Research forecasts a compound annual growth rate (CAGR) of 38% through 2032. This is far above the 6% CAGR that Allied forecast for the overall chip industry through 2031.Additionally, Nvidia appears poised to begin shipping its next-generation AI chip Blackwell in the fourth quarter. This should help it maintain its market lead as its competitors struggle to catch up to the chip giant.Considering Nvidia's technical lead, current shareholders should probably stay in the stock because it will likely remain a long-term winner. In time, it may even replace the struggling Intel as a Dow 30 stock.So, what happened? Despite Nvidia's huge potential, the short-term outlook for its stock looks increasingly bleak. Amid several quarters of triple-digit revenue growth, the company eventually fell short of increasingly elevated expectations. Consequently, the stock is down by about 25% from its 52-week high.Admittedly, its gains may have appeared justified from the perspective of its price-to-earnings ratio (P/E). At just 48 times earnings, Nvidia may look undervalued when considering the company's triple-digit percentage revenue and earnings growth.Still, the other metrics may have left investors questioning Nvidia's current price. Its price-to-sales (P/S) ratio had exceeded 40 as recently as July, and the current sales multiple of about 27 makes it expensive by just about any measure.<figure class="image image_resized" style="width:100%;"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/screenshot_1726131148_4e018965df.png" alt="screenshot_1726131148.png"></figure>Also, its valuation looks more stratospheric when taking into account its price-to-book value ratio of 43. With AMD and Qualcomm selling at a respective 4 times and 7 times book value, Nvidia may have trouble justifying its huge premium.Moreover, investors tend to sour on stocks with slowing growth, even when the growth rate is robust. This may not be fair, but the fact is that triple-digit growth numbers are unsustainable over the long term. Also, customers are likely to turn to the company's competitors' slower but available AI chips as Nvidia struggles to meet demand.Additionally, investors need to keep the history of Nvidia stock in mind. Despite the gains of more than 20,000% during the past 10 years, the stock has also fallen by more than 50% twice during that period.Such sell-offs tend to occur because the chip industry and its stocks move in cycles. While the upward moves in this stock have handsomely rewarded shareholders, they have also had to endure brutal sell-offs. With Nvidia likely in a bear phase now, investors may want to wait until 2025 before they consider adding shares.Nvidia stock's future Given Nvidia's momentum and its high valuations, investors should probably refrain from adding the company's shares in the last months of 2024. Admittedly, the bull market in AI chips is likely not over, and current shareholders should benefit in the long term by staying in the stock.Nonetheless, both investor expectations and the stock price appear to have become too detached from the fundamentals. Thus, investors should probably wait a few months before adding to positions in Nvidia stock.

Perhaps no stock has risen more so fast than Nvidia (NVDA 8.15%). At one point, it was up by about 1,000% in less than two years, briefly taking its market cap north of $3.2 trillion before it pulled back.

Prediction: Nvidia Stock May Tumble in the Remainder of 2024

Market

Zimbabwe’s stocks are on a tear as investors seek refuge from the new bullion-backed currency that’s at a record low against the US dollar.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/e197b1392e8d8e397eedb334e854addc_f1657d58a3.webp" alt="e197b1392e8d8e397eedb334e854addc.webp"></figure>The Zimbabwe Stock Exchange’s All Share Index, which trades exclusively in local currency, has risen 28% since Aug. 28, when the ZiG started consistently losing value against the dollar. The index has risen 160% since it was rebased to a 100 when the unit started trading on April 8.But instead of causing jubilation among equity traders, it has them worried. They see the surge as a return to the past and a reflection of deep-seated trouble in the currency markets.“The stock market has remained largely correlated to the parallel market and injections of ZiG liquidity,” said Lloyd Mlotshwa, the head of research at IH Securities, a Harare-based brokerage. “It’s the same song on repeat.”The ZiG, short for Zimbabwe Gold, which started trading at 13.56 at adoption now sells for 26 per dollar on the parallel market and 13.97 officially. It has lost value against the dollar for 17 straight trading days, its longest losing streak since its debut.You can follow Bloomberg’s reporting on Africa on WhatsApp. Sign up here.The southern African nation introduced ZiG, its sixth attempt at a functioning currency in 15 years, to build confidence in a local unit after its predecessor the Zimbabwean dollar lost more than 80% of its value against the US dollar this year. Its plunge caused investors to pile into stocks as a safe haven and hedge against surging inflation, leading to a more than fourfold increase in the stock market.The central bank has instituted various measures to support the ZiG including a crackdown on street traders and pumping $64 million so far this month into the market. The injection will “effectively mop-up significant liquidity in the market,” Governor John Mushayavanhu said in an emailed statement Thursday.Stocks favored by investors include Econet Wireless Ltd., the largest telecommunications company and Delta Corp Ltd., a beverages maker, said Mlotshwa. “ZiG flow is concentrated in those two names.”

Zimbabwe’s stocks are on a tear as investors seek refuge from the new bullion-backed currency that’s at a record low against the US dollar.

Traders See Trouble in Zimbabwe’s 28% Stock Surge and Weaker ZiG

Warning

Many victims have come forward to expose Basel Markets' sophisticated schemes to swindle investors out of their assets. One notable case recorded by Info Finance involves an investor who was deceived after trusting the invitations from a woman named Bao Ngoc. Below are the details of the case and how Info Finance can assist you in filing a complaint.<h1>Basel Markets: A Fraud Scheme by a Trusted Individual</h1>According to a report from the victim, the investor started trading with Basel Markets through the recommendation of a woman named Bao Ngoc. After long conversations and building trust, Bao Ngoc persuaded the investor to join this trading platform. Initially, trading went smoothly with small profits, giving a false sense of security and trust.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/screenshot_1726805529880_44c509ed00.png" alt="screenshot-1726805529880.png"><figcaption>Link: <a href="https://www.facebook.com/groups/364931191673961/posts/933989994768075">https://www.facebook.com/groups/364931191673961/posts/933989994768075</a>&nbsp;</figcaption></figure>However, the issue arose when Basel Markets placed large trades automatically without the investor’s consent. This led to a negative account balance of $7,000, causing significant financial damage. The investor admitted to trusting unfamiliar people too easily but also highlighted that the fraudsters spent considerable time gaining trust before luring them into the investment.<h1>Signs of Fraud from Basel Markets</h1>This case is not an isolated one, as many other investors have encountered similar situations while trading with Basel Markets. The following signs may help identify a fraudulent platform:<ul><li>Manipulation through personal brokers: Basel Markets uses individuals or brokers to build trust with investors and then lead them into trading with the platform.</li><li>Unauthorized automatic trading: The platform places large trades automatically without the investor’s permission, resulting in significant financial losses.</li><li>No response to complaints: When investors encounter issues, they receive no support or response from Basel Markets, further confirming the platform’s fraudulent nature.</li></ul><h1>Safe Investing with Info Finance</h1>If you have any complaints about a trading platform, follow these steps to submit a report to Info Finance for timely assistance:Step 1: Visit Info Finance's official website at<a href="https://infofinance.com/">&nbsp;https://infofinance.com/</a> Step 2: Click on "Report Broker/ File a Complaint" on the homepage. Step 3: Select "Send Report" to start reporting the issues you’re facing.Thank you for following the news with Info Finance. Don’t forget to follow InfoFinance's fanpage for the latest updates. If you need support during trading or dealing with a platform, please contact Info Finance through the following channels:Support: CS@infofx.vn Hotline: 0904 096 829 / 0931 085 659

Many victims have come forward to expose Basel Markets' sophisticated schemes to swindle investors out of their assets. One notable case recorded by Info Finance involves an investor who was deceived after trusting the invitations from a woman named Bao Ngoc. Below are the details of the case and how Info Finance can assist you in filing a complaint.

Basel Markets Scam: Don’t Let Your Money Slip Away

The Federal Reserve's decision to opt for a bigger half-percentage-point cut opened a new area of disagreement between GOP nominee Donald Trump and Fed Chair Jerome Powell.What Trump said this week is that the cuts are a sign of one thing: a weak economy that he claims was brought on by the Biden/Harris administration."I guess it shows the economy is very bad to cut it by that much assuming that they are not just playing politics," Trump said at a Manhattan bitcoin bar Wednesday."One or the other," the GOP nominee added "but it was a big cut."Powell — who was elevated to Fed chair by then-President Trump but has found himself often at odds with him in recent years — offered an opposite analysis Wednesday afternoon."Our economy is strong overall," Powell told reporters, arguing the move to cut the Fed's benchmark rate by 50 basis points was instead a way to try to ensure "strength in the labor market can be maintained" alongside economic growth.Read more: The Fed rate cut: What it means for bank accounts, CDs, loans, and credit cardsPowell also tried to dampen concern that the large cut was a sign policymakers were behind the curve or overly concerned that a deeper downturn in the economy could be around the corner.President Biden also weighed in Wednesday afternoon to say the news represented an important milestone."Inflation and interest rates are falling while the economy remains strong," the president wrote as he sided with Powell on the question of the state of the economy.Vice President Kamala Harris added in her own statement the move is "welcome news for Americans who have borne the brunt of high prices [but] my focus is on the work ahead to keep bringing prices down."How this ends up impacting the 2024 campaign or economic growth remains to be seen.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/a1780eb0_75f2_11ef_b7ff_58ef49b6ff78_51e42f9b57.webp" alt="a1780eb0-75f2-11ef-b7ff-58ef49b6ff78.webp"></figure>It comes after a run-up to the crucial decision saw Powell in a stronger-than-expected position politically, seemingly poised to sidestep more severe political fallout for making a crucial Fed pivot just weeks before a presidential election.Powell was dinged from the left for waiting too long.“This cut in interest rates is yet another acknowledgement that Powell waited too long to reduce rates,” wrote Sen. Elizabeth Warren after the news, but she added that she was happy that lower rates are now in place.Warren, who previously this week advocated a 75 basis point cut, added Wednesday that “more rates cuts are needed.”<h2 style="text-align:justify;">A culmination of a year of Trump commentary on the Fed</h2>The commentary from Trump on monetary policy is just the latest in a year where Trump, as he did as president, has chosen to regularly weigh in on the Fed with criticisms of Powell.Trump raised eyebrows last month when he offered that the president should "have a say" in Fed decisions and that Powell has "gotten it wrong a lot."On Wednesday, Powell responded to Trump's comment by defending the historic independence of the central bank and expressing optimism that it would continue in the years ahead.Earlier this year, Trump's critiques of Powell were more directly political. He told Bloomberg in June that cuts are something "they know they shouldn't be doing." That came after a February Fox Business interview, when Trump said of cuts, "I think [Powell's] going to do something to probably help the Democrats."More recently, Trump has tended to focus less on the central bank. Weeks can go by without the GOP nominee mentioning the central bank publicly and the topic didn't even come up at last week's debate with Harris.Trump instead tends to discuss his energy plans when asked about interest rates, saying more drilling would help drive interest rates lower.Trump's plan if he wins, RNC spokesperson Anna Kelly told Yahoo Finance early this week, is to "declare a national energy emergency to quickly bring down mortgage and interest rates."<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/c0a7e9e0_75f2_11ef_ae76_af4337672f5c_3e3896e9e1.webp" alt="c0a7e9e0-75f2-11ef-ae76-af4337672f5c.webp"></figure>Trump's critique is one he's been telegraphing this week. "They'll do the rate cut and all the political stuff," Trump told a Michigan crowd Tuesday night before the news came in but with a cut widely expected. The underlying reason, he added, "is because the economy is not good, otherwise you wouldn't be able to do it."For his part, Powell again sought to downplay the role of politics, noting Wednesday afternoon that the economic effects of this week's move would be felt "for the most part with a lag" — presumably after polls close in November.Either way, he added, "Our job is to support the economy on behalf of the American people and if we get it right, this will benefit the American people significantly so this really concentrates the mind," he said.

The Federal Reserve's decision to opt for a bigger half-percentage-point cut opened a new area of disagreement between GOP nominee Donald Trump and Fed Chair Jerome Powell.

A big Fed rate cut gives Donald Trump and Jerome Powell something else to disagree about

The Federal Reserve is widely expected to cut interest rates for the first time in four years Wednesday and outline the path for future rate cuts.Investors have been hoping for a larger half-percentage-point cut versus a quarter-point cut. Traders, in recent days, have increased their wager that the central bank will cut by a deeper 50 basis points. Wednesday morning, Fed funds futures were pricing in a better than 60% chance the Fed cuts by 50 basis points, up from just 15% odds a week ago.“The Fed cutting by 50 basis points is a real possibility,” said Wilmer Stith, bond trader for Wilmington Trust, who just last week thought it was more likely the central bank could cut by 25 basis points. He’s on the fence, though, as to whether it actually happens.Ahead of the blackout period, which started Sept. 7, comments from Fed officials indicated they are more likely to trim their benchmark interest rate by a quarter percentage point. That would mean a new range of 5.0-5.25% from its 23-year high of 5.25% to 5.5% when their policy meeting concludes this afternoon.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/1_94d857c1b7.webp" alt="1.webp"></figure>Either way, the Fed’s actions will officially mark the termination of the most aggressive inflation-fighting campaign since the 1980s. The rate cut will mark the first in a series of cuts, with intense focus on the Fed’s new interest rate projections, known as the so-called dot plot, for how many rate cuts officials see for the remainder of this year and next.<h2 style="margin-left:0;">Rate debate</h2>JPMorgan chief economist Michael Feroli is one who believes the Fed needs to cut by a bigger amount.“What the Fed should do is clear: Recalibrate the policy rate 50 basis points lower to adjust for the shifting balance of risks,” said Feroli.As inflation has continued a slow downward descent, officials are turning more attention to the job market, which has weakened, with Fed Chair Jay Powell pledging to do everything to maintain a strong job market.Feroli sees a 50 basis point cut Wednesday, with guidance for two 25 basis point cuts at the last two meetings of the year.But former Kansas City Fed president Esther George expects a quarter-point cut with the potential for Powell to lay the groundwork for deeper cuts in subsequent meetings.Who's right? We'll see, of course. But it could take a lot to form a consensus around the FOMC table to vote unanimously for a 50 basis point cut.Some of the committee members, including Fed governor Michelle Bowman, Atlanta Fed president Raphael Bostic, and Philadelphia Fed president Patrick Harker, had indicated that starting with 25 basis points made sense and they weren’t alarmed by the cooling in the labor market.In contrast, in Jackson Hole in late August, Powell struck a dovish stance with comments that indicated he could be in favor of a 50 basis point cut, saying the Fed “will do everything we can to support a strong labor market as we make further progress toward price stability.” He noted that the Fed does not "seek or welcome further cooling in labor market conditions" and that the current level of the policy rate gives the Fed “ample room” to lower rates in response to any weakening in the job market.<figure class="image"><img src="https://infofinance-prod.s3.ap-southeast-1.amazonaws.com/2_a377d98cbe.webp" alt="2.webp"></figure>In any case, Powell will have to explain the interest rate decision and projections in the press conference following the meeting. He'll either set expectations for deeper, more aggressive cuts or say the Fed is expected to take a measured, gradual approach and is prepared to take more aggressive action if warranted.Lots of changes to the language in the Fed’s policy statement are also expected to reflect the Fed’s decision to start a rate cutting cycle, including that officials have gained confidence inflation is falling sustainably to their 2% target, that officials are more focused on weakness in the labor market now, and that the timing and size of future cuts will depend on the data.In addition to their policy decision and interest rate projections, Fed officials will also release forecasts for unemployment, inflation, and the economic outlook. Fed Chair Powell will hold a press conference at 2:30 p.m. ET.

The Federal Reserve is widely expected to cut interest rates for the first time in four years Wednesday and outline the path for future rate cuts.

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