(KRON) — In today’s installment of Winners & Losers, financial expert Rob Black discusses a slip in the stock market, Nancy Pelosi’s trip to Taiwan and Amazon’s growing influence in local strip malls.
Loser: Stocks slip ahead of Pelosi trip
Stocks opened lower as investors monitored geopolitical tensions ahead of U.S. House Speaker Nancy Pelosi’s trip to Taiwan.
On the earnings front, Uber shares are higher in early trading after the company reported a better-than-expected quarter across the board.
This is going to be a big week for the online travel sector. Expedia, Booking and Airbnb are reporting June quarter financial results.
Job openings fell sharply in June as labor market shows signs of slowing.
Hackers drain nearly $200 million from crypto startup Nomad in “free-for-all” attack.
Naomi Judd has cut her daughters Ashley and Wynonna out of her $25M will. Naomi left her estate and her fortune, which is reported to be around $25 million dollars, to her husband Larry Strickland, who she married in May 1989.
Loser: Market risk grows as Nancy Pelosi goes to Taiwan
Technology investors are on pins and needles, waiting to see if Pelosi makes her planned historic visit to Taiwan and whether it draws a response from China.
Though it is likely just short term saber-rattling, the potential trip serves as a reminder of the significant risk that Taiwan represents for the U.S. technology sector.
Most of the world’s advanced chips are made in Taiwan.
Pelosi is planning to visit Taiwan and meet officials in Taipei. The last Speaker to visit Taiwan was Newt Gingrich in 1997.
China is not happy about the idea and has threatened to respond if Pelosi visits Taiwan, which it regards as a breakaway province.
Geopolitical effects are inherently unpredictable.
Bridgewater founder Ray Dalio has said he believes there is a 30% chance of a war between the U.S. and China in the coming years.
Taiwan accounts for more than 90% of the world’s most advanced chip manufacturing, followed by South Korea at 8%.
The good news is the U.S.’s and China’s technology economies are so intertwined. Both countries have incentives not to go to war.
Winner: Amazon targets strip mall shoppers
Partners in Prime in the instant demand economy.
Amazon may be an online shopping powerhouse, but it increasingly wants what’s left of your local strip mall, too.
First, the e-commerce giant acquired Whole Foods.
Then it launched Amazon Fresh stores in empty grocery storefronts.
Now, it’s upping its brick-and-mortar game by partnering with retail stores such as Pac Sun and Sur La Table to offer Prime members same-day delivery of their products.
In theory, the program will benefit all parties involved.
For Superdry, Diesel, GNC and other retailers, it’s a way to juice sales while off-loading the delivery logistics to Amazon.
For Amazon, it’s a way to wriggle into the love affair between consumers and their favorite retail brands.
Amazon is aggressively making sure it doesn’t lose out to Walmart and Target, as well as upstart courier services like DoorDash and Postmates.
Everybody wins in the new mall initiative, with the possible exception of the planet.