Trump celebrates Dow Jones breaking 2500 just a he did last year at this time

US president Donald Trump always celebrates when the stock market is doing well so it is not surprising that on Wednesday he tweeted in celebration as the Dow Jones Industrial Average (DJIA) rose above the 25,000 mark.

From this January to last January the Dow Jones is now basically flat

On Wednesday the 29th of January 2019 Trump tweeted: "Dow just broke 25,000. Tremendous news! 1:54 PM - 30 Jan"

While this is positive for investors, since the Dow Jones has been doing badly lately, one needs to see how this compares with last year around this time. Investors want their investments to increase in value over time. A look at the history of Trump's tweets shows a forgetful approach to the fluctuations of the Dow Jones over an extended period.

On January 4, 2018 just after Trump signed into law his tax cuts that helped mostly businesses and the wealthy he tweeted: "@realDonaldTrump Dow just crashes through 25,000. Congrats! Big cuts in unnecessary regulations continuing.

9:48 AM - Jan 4, 2018"

Trump tweeted a third time on July 14, 2018 that "The Stock Market hit 25,000" meaning the Dow Jones average. He also said that jobs were at an all-time record and that he had fixed some of the worst trade deals and conditions ever seen by any government.

2018 was a bad year for stocks

The year 2018 was actually the worst year for stocks since 2008, the year of the great recession. While some factors causing the slide were due to Trump, others were not.

The present economic expansion has been continuing for so long, until recently slowing a bit, that many investors have been wondering how long their luck would last. A combination of global and domestic events may have convinced many that as of now things will begin to decline.

Trump's trade war with China is one of their concerns, in that it could have a negative effect on some farmers such as those who grow soybeans and also raise consumer prices. Economic growth has slowed in the EU and is also expected to slow down in China next year. The drama in the UK over Brexit is causing worries as well. Some worry also that the Feds may raise interest rates slowing growth.

As markets dropped during the late fall, Trump stopped talking about it, but talked about such things as low gas prices and low unemployment. As stocks have risen in January, he is back at his old boasting. As usual, he does not place it in context which shows that the stock market actually had a very bad year in 2018.

The issue is also covered on CNN.

Previously published in Digital Journal

Chinese giant Tencent to partner with Chinese auto group

Some of China's Internet companies are forming partnerships with large state-owned auto manufacturers in order to deploy their artificial intelligence (AI) and cloud computing services across traditional Chinese industries.

Tencent to partner with the GAC group in new venture

Tencent is described by Wikipedia: "Tencent Holdings Limited is a Chinese multinational investment holding conglomerate founded in 1998, whose subsidiaries specialise in various Internet-related services and products, entertainment, artificial intelligence and technology both in China and globally. Its twin-skyscrapers headquarters Tencent Seafront Towers (also known as Tencent Binhai Mansion) are based in Nanshan District, Shenzhen.

"The company surpassed the market value of US$500 billion in 2018, becoming the first Asian technology company to cross the valuation mark. It has since then emerged as one of Asia's most valuable companies, and among the world's top technology companies by market value. Tencent has been credited as one of the world's most innovative companies by numerous media and firms, including Boston Consulting Group. As of 2018, Tencent has the 5th highest global brand value."

The GAC group is a Chinese auto manufacturer: "GAC Group (officially Guangzhou Automobile Group Co., Ltd.) is a Chinese automobile maker headquartered in Guangzhou, Guangdong, and a subsidiary of Guangzhou Automobile Industry Group. GAC sells passenger cars under the Trumpchi brand, passenger cars and commercial vehicles under the Gonow brand, SUVs under the Changfeng Motor brand, and buses under the GAC Bus brand. GAC produced 728,000 vehicles in 2012, and is the tenth largest in volume. It is the sixth-largest producer of passenger cars among Chinese automakers. While the company is primary focused on consumer vehicles, it does make large passenger buses and commercial trucks although it is outside the top ten commercial vehicle makers in China."

GAC has a joint venture with Honda, but it has five foreign partners altogether allowing it produce other brands including Fiat, Honda, Isuzu, Mitsubishi, and Toyota in China.

GAC which is owned by the Guangzhou municipal government in south China announced in a filing that it will jointly establish a mobility company with Tencent, Guangzhou Public Transport Group, as well as other investors.

New partnership follows an earlier one

In 2017 Tencent and GAC also teamed together on internet-connected cars and smart driving. This allowed GAC to tap into Tencent's expertise on mobile payments, social networking, big data, and cloud services. Tencent is known for its instant messenger service "We Chat". The company restructured last October to concentrate on enterprise-facing services and the GAC partnership fits in with the new emphasis. The partnership is discussed in this earlier Digital Journal article.

New mobility venture will have a large capital infusion

The new partnership venture will have a capital infusion of 1 billion yuan or $149 million. GAC will own 35 per cent of the company, Tencent and Guangzhour Public Transport will hold 25 percent and 10 percent respectively with other investors the remainder.

Other Chinese Internet services entering partnerships with the automotive industry

The ride-hailing startup Didi Chuxing, which owns Uber China, announced earlier this week a new joint venture with state-owned BAIC. Huawei the telecommunications manufacturer and voice assistant startup iFytec has partnered with GAC to upgrade its vehicles. The search giant Baidu is operating an open platform has partnered with state-owned Honggi to test out its autonomous driving software. Finally the e-commerce giant Alibaba is producing a smart sedan together with the state-owned SAIC.

Previously published in Digital Journal