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August 3, 2020

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The Entry Level Service for the Mad Hedge Fund Trader

The Five Most Important Things That Happened Today

(and what to do about them)

Microsoft Negotiating To Acquire TikTok.

The short-form video app TikTok owned by China’s ByteDance has to be one of the top-notch growth tech assets out there on the market. This would easily make Microsoft a $2 trillion company and this big splash would clearly put them in a class of their own above Apple and Amazon. TikTok has over 100 million U.S. subscribers and is a direct competitor with Facebook. This has to be Mark Zuckerberg’s worst nightmare come true as ad dollars are poised to shift onto TikTok. U.S. President Donald Trump has given ByteDance and Microsoft until September 15 to conclude the deal after threatening to scorch the earth and ban the Chinese app first.

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Congress Still Unable to Agree On A Stimulus Bill.

With the eviction moratorium expiring and the $600 per week unemployment benefit ending, Democrats and Republicans are still at loggerheads over a new stimulus bill that would put more money into American’s pockets. This is taking place while the virus rages through the mid-west and south. Cases have exploded to 60,000 per day and the sticking point appears to be that Republicans want to get rid of $600 per week and replace it with $200 per week while the Democrats believe the $600 per week should be upheld.

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SpaceX’s Crew Dragon Back After Historic Space Mission.

SpaceX’s Crew Dragon spacecraft is the first private spacecraft to launch successfully into space and return as the spacecraft landed in the Gulf of Mexico. The last time two NASA astronauts visited space was over a decade ago. NASA has awarded SpaceX with $3.1 billion to develop the spacecraft, as well as launch six operational missions, and Musk will build off this success to finally one day move to Mars. The team will spend the next 6 weeks analyzing data before moving onto the next mission.

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HSBC Can’t Create Miracles.

The British/Hong Kong bank HSBC Holdings PLC has upped its bad debt charges from $7 billion to $13 billion as the coronavirus has its fingerprints all over their earnings report. The bank also indicated that capital reserves are quickly deteriorating, and revenue drivers are under massive pressure as the global outlook sharply erodes. Profit was down 65% year-over-year and the bank has already slashed headcount by 4,000 this year. The performance is a bad omen to come if the health crisis cannot be solved soon.

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Chinese A.I. Firm Sues Apple For $1.4 Billion In China,

You knew this was just around the corner and right on cue as Chinese A.I. firm Shanghai Zhizhen Intelligent Network Technology Co., Ltd. sues Apple for $1.4 billion for patent infringement. The company demands that Apple stop “manufacturing, using, promising to sell, selling, and importing” their patents. Apple has been absolutely brilliant in navigating Chinese politics and the economy. Remember, this is a country that has no judicial process and it is effectively criminal to compete against local firms as a foreign entity. People don’t understand the magnitude of what CEO of Apple Tim Cook has accomplished in the Middle Kingdom.

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Published today in the Mad Hedge Global Trading Dispatch, the Mad Hedge Technology Letter, and the Mad Hedge Biotech and Healthcare Letter:

(MEET THE GREEKS)

(THE MASTERY OF TIM COOK)

(AAPL)

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