Day: July 29, 2022

Why El Salvador is doubling down on Bitcoin despite the 2022 price crash

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.

The Bitcoin (CRYPTO: BTC) price is up 3% since this time yesterday. That puts the world’s leading crypto up 4% over the past week.

One Bitcoin is currently trading for US$23,924 (AU$34,085).

The last week’s move higher will be welcomed by crypto investors. However, the Bitcoin price remains down 50% year-to-date and down 62% from the record highs reached on 10 November last year.

That timing didn’t exactly work out well for El Salvador’s government.

The Bitcoin price hit its record high two months after El Salvador became the first nation in the world to adopt the crypto as legal tender. President Nayib Bukele made the virtual groundbreaking announcement on 10 June 2021. The legislation took effect in September 2021.

Unswayed by Bitcoin price retreat

According to calculations by Bloomberg – based on Bukele’s tweets – the 2,381 Bitcoin El Salvador bought with public funds are worth about 50% of what the government paid for them.

Despite the big retrace in the Bitcoin price, El Salvador’s finance minister, Alejandro Zelaya, stood by the decision.

According to Zelaya (quoted by Bloomberg):

For some, it’s something new and something they don’t entirely understand, but it’s a phenomenon that exists and is gaining ground and will continue to be around in the coming years.

Zelaya was also unswayed by surveys indicating the majority of businesses and households continue to preference fiat currency over the crypto:

We aren’t going to have results overnight. We can’t go to bed poor and wake up millionaires. New technologies have shown how people in previous years were afraid of things like websites and digital business, but it’s been shown through time that reality imposes itself.

Crypto-backed bond still in the pipeline

Not everyone is as enthusiastic about the nation designating Bitcoin as legal tender.

The IMF counts among those critics. Yet El Salvador’s government intends to move forward with its plans for a US$1 billion Bitcoin-backed bond even as it negotiates a US$1.3 billion extended fund facility with the IMF.

Zelaya said the Bitcoin price crash had only delayed the rollout of the crypto-backed bond, not derailed it.

“I believe in the traditional, international monetary system just as I believe that new technologies are going to help human beings in the future,” he said.  “So, I think making that transition is vital and it would be wrong of us to not pursue financial innovation that could benefit El Salvador.”

The post Why El Salvador is doubling down on Bitcoin despite the 2022 price crash appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bitcoin right now?

Before you consider Bitcoin, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zS3h570

Oil has retraced from June highs. What’s this mean for the Woodside share price?

The Woodside Energy Group Ltd (ASX: WDS) share price is lifting into the green during afternoon trade on Friday.

At the time of writing, the share is trading 0.3% higher at $32.07 on no news. In broad market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) is up 0.43% on the day.

It’s also proving a good day for Woodside’s ASX oil share peers. The Santos Ltd (ASX: STO) share price is up 1.04% in late afternoon trade, while the Beach Energy Ltd (ASX: BPT) share price is rising 1.11%.

Meanwhile, Brent Crude is trading around 0.24% down at US$106 per barrel after moving in sideways territory throughout July.

The oil benchmark is now down from its 9 June highs of US$120 per barrel, pointing to a potential cooling in prices.

What does this mean for the Woodside share price?

Despite its recent volatility, forecasts remain strong for the price of oil, which could weigh on the Woodside share price.

“Shell CEO Ben van Beurden told Bloomberg TV on Thursday that there is more upside than downside for oil prices as ‘demand hasn’t fully recovered yet and supply is definitely tight’,” Trading Economics reports.

“TotalEnergies CEO Patrick Pouyanne shared the same view, saying oil production could not keep up with recovering demand,” it added.

Meanwhile, the risk of recession continues to be a weighting factor on global oil markets. With the US Fed raising its policy rates another 75 basis points this week, talk of economic slowdown has grown.

“It certainly feels like we are back in trade-off mode again, where sentiment is shifting between recessionary risks in H2 and a fundamentally undersupplied market,” Stephen Innes of SPI Asset Management told Reuters.

The movement of the oil price has been reflected in the Woodside share price over the past 12 months, as seen on the chart below.

TradingView Chart

Woodside has gained more than 46% this year to date and is up 45% for the past 12 months.

The post Oil has retraced from June highs. What’s this mean for the Woodside share price? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Lbc93uV

Here’s what’s happening with CBA shares this week

a woman wearing the black and yellow corporate colours of a leading bank gazes out the window in thought as she holds a tablet in her hands.

a woman wearing the black and yellow corporate colours of a leading bank gazes out the window in thought as she holds a tablet in her hands.

Commonwealth Bank of Australia (ASX: CBA) shares are gaining alongside the broader market rally today.

CBA shares closed yesterday trading for $99.89 and are currently changing hands for $101.12, up 1.2%.

Barring any late afternoon selling action, today should mark the third day of share price gains for the big four bank. CommBank closed lower on Monday and Tuesday, then rallied on Wednesday and again on Thursday in the wake of the US Fed’s 0.75% interest rate hike decision.

All up the big bank’s share moves this week leave it up 3.4% since last Friday’s close.

Now here’s what put CBA shares in front of the media this week.

CommBank rolls out new tech

On Tuesday, CommBank reported that commencing early next month, customers will be able to use its app to track their carbon footprint. In a first for Aussie banks, the emissions estimate will be based on their spending data.

The tech behind the app was developed in partnership with sustainability Fintech startup Cogo.

Commenting on the carbon tracking app rollout, Ben Morgan, general manager strategy investments and transformation said:

The combination of customer data and Cogo’s capabilities, means we can now provide personalised and granular information to customers about how their spending translates to a carbon footprint.

A customer’s carbon footprint is an estimate that considers things such as personalised spending data and transaction behaviours.

CBA shares were back in the news on Thursday when the bank unveiled its latest technology hub in Melbourne’s central business district.

The centre can support some 400 software developers, cloud engineers and cyber specialists, which the bank says will help create fresh opportunities for Victoria’s growing digital economy workforce.

Commenting on the new tech hub, Brendan Hopper, CBA’s chief information officer for technology said:

Establishing a tech hub in Melbourne puts us in a great position to tap into Victoria’s digital technology industry, which is not only internationally recognised, but incredibly robust and competitive thanks to support from the government and the education sector,

CBA recently opened a tech hub in Adelaide and operates another tech centre in Sydney. The bank intends to open more tech hubs across Australia to tap into those states and territories’ technology skills.

How have CBA shares been performing longer term?

CBA shares have outperformed the benchmark over the past 12 months, gaining 2% while the ASX 200 fell 6%.

At the current share price, CBA also pays a trailing dividend yield of 3.9%, fully franked.

The post Here’s what’s happening with CBA shares this week appeared first on The Motley Fool Australia.

Should you invest $1,000 in Commonwealth Bank Of Australia right now?

Before you consider Commonwealth Bank Of Australia, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/O0vqPCN

3 ASX All Ords shares having a stellar end to the week

Three people sit on safe cheering with pizza on tableThree people sit on safe cheering with pizza on table

It’s been a good week for the All Ordinaries Index (ASX: XAO), and these shares are making the most of it, rocketing home on Friday.

The index has gained 2.5% since the end of last week, driving it to trade at a seven-week high this afternoon.

Let’s take a look at three shares leaping towards the finish line.

3 ASX All Ords shares surging higher on Friday

Temple & Webster Group Ltd (ASX: TPW)

It’s been a good week for the ASX All Ords Index, but its performance has been nothing compared to that of the Temple & Webster share price.

It’s lifting another 11.01% today to trade at $5.04 – 33% higher than it closed last Friday.

There’s been no news to explain the online homewares and furniture retailer’s recent gains. However, the Australian Bureau of Statistics released data detailing another record level of Australian retail turnover in June.

Additionally, an insider recently suggested online retailers might actually benefit from rising inflation, as my Fool colleague Tristan Harrison reports.

Adriatic Metals Plc (ASX: ADT)

It’s also been a good day for precious and base metals explorer Adriatic Metals.

The All Ords share is leaping 8.9% so far to trade at $2.08 on the back of the company’s quarterly results.

The company said it has inflationary pressures under control, its project is still on schedule to begin concentrate production in the second quarter of 2023, and it held US$83.4 million in cash as of 30 June.

EML Payments Ltd (ASX: EML)

The EML Payments share price is also ending the week on a strong note, up 9.28% to $1.06. Sadly though, it’s not enough to boost the All Ords share back into this week’s green.

Monday saw the stock plummet 22% on news the Central Bank of Ireland isn’t impressed with the company’s remediation program.

EML Payments is now making further changes in a bid to get the central bank’s final approval next year.

The post 3 ASX All Ords shares having a stellar end to the week appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended EML Payments and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/6ZFmkuA