"STATUS OF RV" BY DINAR IRAQ & DONG VIETNAM, 26 JULY

 STATUS OF THE RV

Well the RV has not yet happened in Iraq nor has the reinstatement of the dinar.

As far as the banks are concerned there is still the US Treasury OFAC sanctions in place on the Iraqi dinar.

Yes, the banks are selling dinar but this is mirroring the internet sales and small brokers not official trading as buying and selling on FOREX on a real sense.

As you may recall a couple weeks ago, I was told by my CBI contact to expect the new rate on FOREX, however it did not occur, as stated.

So, again this weekend I inquired on my weekly call to Iraq and asked what happened.

I was told it was stopped due to the US Treasury audits of many of the major banks in Iraq.

As a result of these audits banks were denied dealing in US dollars due to their violation of international standards for foreign transfers in 2022.

Fourteen banks were actually included not to deal in the national currency of Iraq instead to use dollars, which is of wide international use.

Although they restricted fourteen banks from dealing constitute only 8% of their dealings, this will not affect the dealings of our other banks, and that the manipulation of speculators in the black market in manipulating the exchange rate of the Iraqi dinar will not continue and will stop soon because of the Central Bank’s call to the government to the necessity of continued monitoring, auditing, and establishing a mechanism to link the imports entering Iraq to the dollars paid out.

What the CBI is doing is to prove the existence of a fundamental and sound external transfer corresponding to its value in order to prevent the use of the black market in obtaining cash dollars from the currency auctions.

So again, this corruption supports the figures for dollar sales on the one hand, and comparing them with the level of domestic demand for remittances and cash on the other hand, shows the existence of a gap that indicates that demand exceeds supply.

Some of this money in the gap of course goes to Iraqis for international traveling expenses, to pay for foreign university education bills, etc.

So don’t let anyone tell you that there is a shortage of dollars in Iraq to pay for imports.

This simply is not true.

The only shortage that is created is when demand exceeds supply intentionally is for the parallel black market.

In an article today they tell us that between 180-200 million dollars are needed in the auctions to support the economy.

Since the auctions have been over this at about 235-250 why do they say the merchants can’t pay their bills because of a shortage of dollars?

They want to keep stealing dollars out of the CBI through these auctions.

The Prime Minister, Mr. Mohamed Shia Al-Sudani, met on Sunday with the Governor of the Central Bank, Mr. Ali Mohsen Al-Alaq, in the presence of the advisors and the General Manager of Investment at the bank.

During the meeting, they discussed the measures taken by the Central Bank with regard to the stability of the currency in the Iraqi market, and the most prominent plans prepared to reform, develop and empower the banking sector to take its role in achieving sustainable development and facing challenges.

Due to all the news media coverage and so-called turmoil caused by the bank sanctions last week (some of it all lies), the parliamentary finance committee revealed on Monday the goal of hosting the Governor of the Central Bank of Iraq Ali Al-Alaq, a day after his meeting with the Prime Minister.

So what happened as a result of this meeting?

The hosted Governor of the Central Bank of Iraq, Ali Al-Alaq, discussed the issue of the increase in the dollar exchange rate significantly in the local market, and the bank’s measures to confront this rise.

I want to pointed out that the parliamentary finance committee does not have any powers on the issue of dollar measures, this is the competence of the executive monetary authority (CBI), and they only have a supervisory role on those procedures and follow up the imbalance, and they will be held accountable for it, and they will have an opinion on the role of the Central Bank in dealing with the dollar crisis during the coming period.

Remember that the CBI told us just a few weeks ago that they had a 4 axis plan to embark on soon to bring the rate of the dollar down and the dinar up.

I believe this was only the first step in this plan and so let’s relax and watch the rest play out.

So, also remember once again those 3 sectors effecting the Stock Market Financial Reforms (Pillars of Financial Reform) in the White Paper.

They were the stock market, banking and insurance sectors.

Do you think that this move to sanction these 14 more banks this past weekend were in line with actions to satisfy the White Paper?

I really feel sorry for those who have already given up on the dinar revaluation since I know for a FACT they must reinstate the dinar to satisfy their plans to revive Iraq and make it hub for the middle east.

This is their plan and they know they have to reinstate the dinar to do it.

This is just not myself speaking but the IMF, World Bank and the CBI.

Don’t give up now we are about to cross the finish line very soon.

Iraq is capable of multiplying sources of national income through multiple sources of economic income in the agricultural, industrial and tourism fields of all kinds, recreational, religious and therapeutic.

It was told to through Iraqi news article years ago that the fees for customs and tariffs alone could rival the revenues from the oil.

So go figure just how rich Iraq could be if it was not for all the corruption.

As far as I know the budget was opened but not much more occurred.

Until now, the federal budget for the current year has not entered into force, due to the failure to issue instructions for its disbursement,” stressing that the citizens of the region are waiting for the implementation of the budget as soon as possible.

Could it be they want to limit the corruption or are they waiting for yet another CBI revaluation or maybe both?

"Analysis: Iraq’s new budget may hamper more than it helps", 26 JULY

 The Iraqi Council of Representatives passed the 2023, 2024 and 2025 federal budgets on June 12, nearly eight months after Prime Minister Mohammad Shia al-Sudani’s new government was formed.

This year’s budget is Iraq’s largest at 198.9 trillion Iraqi dinars, about $153bn based on the official exchange rate. The 2024 and 2025 budgets will be the same unless the cabinet requests any changes and Parliament approves them.

For the first time, the government took advantage of 2019’s financial management law, which allows for up to a three-year budget. Iraq has not only been slow at passing budgets, but three out of the past nine years also saw no budget passed at all – in 2014, 2020, 2022.

Although there is only half a year left to spend the 2023 budget, there is the reassurance that the next two years will be covered, guaranteeing the government a budget until the next federal elections in late 2025 and for provincial council elections scheduled for this year.

The federal budget also allows the government to fund local investment projects and hire hundreds of thousands of public sector employees, which reflects positively on the prime minister and his governing coalition and increases their electability in both upcoming elections.

Ambitious yet precarious

However, Iraq’s economy and budget rely heavily on oil, which puts both in a precarious position. Nearly all state revenue is from oil sales. In 2022, Iraq earned a record $115.6bn from oil, but it is a volatile commodity. Iraq is not in control of the global oil market, and it is not a relevant decision-maker in OPEC despite being the second-largest member in terms of production.

This leaves Iraq vulnerable to the precarity of oil markets and the decision-making of other OPEC members regarding output, especially since this budget is based on an ambitious oil price of $70 a barrel. If the price dips, it risks unleashing a cascade of economic woes and public anger.

The budget calls for more than half a million Iraqis to be hired this year. It is not the first budget to include massive public sector hiring. Iraq is a country that already struggles with an overburdened public sector of at least 4.5 million employees.

Government offices are overcrowded and disorganised, slowing bureaucracy down further. Big hiring this year will also burden future governments with pensions.

If the government wants to add even more jobs in 2024 and 2025, it just needs Parliament to vote on it, so it is possible that even more jobs will be added in the next two years.

Iraq’s social contract, like many states in the region, is premised on public sector hiring, with citizens expecting a public sector job the moment they graduate from university. The right to a job is enshrined in Article 22 of Iraq’s 2005 constitution, and while it does not specify the type of job, it is a common belief that it means a government position.

The public sector has grown fourfold since 2003, and now salaries constitute more than a quarter of the 2023 budget.

Iraq’s political elite, which formed after the removal of Saddam Hussein in 2003, operates as though the country can still afford this set-up, and it does so for political gain. Most of its members had been exiled or based in the Kurdish region of Iraq and used patronage networks to build ties and legitimacy with the people in the new Iraqi state.

So millions of Iraqis were hired for the public sector, something they were accustomed to but with a new political patron to be grateful to.

Whether for electability or out of a belief in the right to a public sector job, even independent candidates and members of new political parties advocate for public sector hiring. Even the reformist political movement that emerged after the 2019 October protests is disincentivised from pursuing unpopular economic reforms, no matter how important they may be.

Two reforms often discussed by experts and rejected by the public are curbing public sector hiring and implementing more stringent taxation.

The protests, which took place from October 2019 to March 2020, called for economic opportunity, an end to corruption and political reforms. They resulted in early elections and a new electoral law but no systemic change to the political system itself.

To complicate matters further, protesters continue demanding employment and, in some instances, these protests are attended by the handful of independent MPs.

To rebuild a nation

Infrastructure spending is a focus in the new budget, which allocates development and reconstruction funds in particular areas.

Like the Sinjar and Nineveh Plain reconstruction fund of 50 billion dinars ($38m) to reconstruct areas that were destroyed in the fight against ISIL (ISIS), there are also 100 billion dinars ($76m) allocated to the Baghdad municipal government for service projects in Karkh, the west bank of the Tigris, where the Darwish Bridge will be built, streets paved, and public spaces and parks rehabilitated.

Seventy-five billion dinars ($57m) are allocated for revitalizing marshes spread across two southern governorates.

In addition, there is a reconstruction fund for the poorest provinces with 500 billion dinars ($381m) aimed at improving services, such as infrastructure and access to healthcare, electricity and educational services. This is in addition to the existing reconstruction fund for areas that suffered under ISIL.

However, Iraq does not have the best record in spending its federal budget. The last budget passed in 2021 had a 79 percent execution rate and prioritised the payment of salaries and pensions.

Iraq is enjoying a record high in foreign reserves and no longer has to pay reparations to Kuwait for the 1990 invasion, but there is no vision for how to invest this wealth, and the budget still runs a deficit.

Enlarging the public sector actually contributes to further slowing Iraqi bureaucracy down, which holds back the implementation of development projects. To address this, economic reforms are necessary, but they are missing from the budget.

For example, there was no money allocated for the economic policy unit at the Prime Minister’s Office and, as a result, its director is seeking external funding in spite of Iraq just passing its largest budget ever.

The current government may simply be implementing the hiring promises of past governments, but there is no apparent justification for not embedding economic reforms into the budget law.

If a public hiring freeze or cap were to be enshrined in the law instead of having it mandated by an executive order from the Prime Minister’s Office, it would be harder to reverse.

The size of the budget makes it difficult for Iraq to seek development aid or foreign assistance for economic reforms. Improved security and growing stability in Iraq may be able to attract foreign investment, such as the $27bn TotalEnergies deal in Iraq, in which Qatar Energy has a 25 percent stake.

However, it will be difficult to prove to foreign investors that Iraq is a good bet without economic reforms and with a budget that is not significantly different from previous ones.

This is, of course, in addition to the fact that a budget this large is ripe for corruption, which further decreases foreign trust and interest in Iraq’s business environment. Iraq has long struggled with corruption, and experts estimate that $150bn to $300bn have been taken out of the country since 2003.

This budget, by virtue of covering three years, is forward-looking and emphasises infrastructure and reconstruction, which are positives. But its disregard for economic reforms will add pressure on future budgets and governments. https://www.aljazeera.com/news/2023/6/26/analysis-iraqs-new-budget-may-hamper-more-than-it-helps

IRAQ NEWS: "THE RISE IN THE EXCHANGE RATE & THE PROJECT TO DELETE ZEROS STILL EXIST", 26 JULY

 Alaq: The Rise In The Exchange Rate "My Time" And The Project To Delete Zeros Still Exists

Economy News – Baghdad  The governor of the Central Bank, Ali Al-Alaq, considered, on Wednesday, that the rise in the exchange rate of the dollar in the market was temporary, and while he indicated that there was no indication or indication from the American side to include new banks within the sanctions, he confirmed that the project to delete zeros from the currency still exists.

Al-Alaq said, in an interview with the official news agency, that "the central bank continues to provide the dollar at the official rate and cover all legitimate transactions for the purchase request, such as transfers and credits for various imports," adding that "what is being talked about in terms of a rise in the exchange rate does not mean that there is a rise in the official price that It is still the same, but the rise in the cash price circulating in the market is caused by the reluctance of some merchants to enter the electronic platform, which is the official channel for sale required by the new system. He added, "Merchants, in addition to other categories, cannot enter the platform because they do not practice legitimate activities and operations, and our role in the Central Bank is to push everyone who needs to buy dollars to enter the legal and correct way, and the process today is in fact a process of reorganizing the movement of trade and funds, which makes these operations Subject to local and international controls and standards, which leads to an effective implementation of the Anti-Money Laundering and Terrorist Financing Law No. 39 of 2015. Al-Alaq pointed out that “the process of implementing the new system in reorganizing the movement of trade and funds requires the cooperation of multiple parties, and we expected that the issue would receive support, implementation, and interaction from the official and popular parties to support the Central Bank in achieving the goal of this system to make the movement of funds proceed in legal contexts and correct standards to avoid any internal or external risks. He stressed, "The international financial system is integrated, coherent, and interdependent, in which some influence others, and all financial institutions in the world deal with the movement of funds with caution within an accurate assessment of risks and verification of the sources of funds and their beneficiaries. Iraq is part of this system, and we must achieve a high degree of compliance with the standards." The international financial system to ensure the integrity of our financial system, and this, as we indicated, requires great support for the Central Bank, and for each party to take its role. And the Governor of the Central Bank stated, “Regulating foreign trade falls outside the control of the Central Bank and requires the cooperation of multiple parties concerned with this file, such as the Ministry of Commerce, the Border Crossings Authority, the Customs Authority, the security services, and other parties, and what we do serves all parties, the country’s economy and its general situation, and therefore there must be solidarity.” Collaboration and interdependence between everyone with the Central Bank to achieve the goal of the system. He pointed out that "we often hear remarks about the process of selling the dollar and the movement of the currency, and today when the Central Bank assumed this great responsibility to reorganize it and put it in its correct contexts, the issue cost a great effort of human resources to monitor the process and ensure its safety with the application of electronic programs that cost the bank large sums of money." investments, and we seek the assistance of an international auditing firm to review operations and verify their validity, and here there must be support and backing to achieve the primary goal.” He pointed out that "there are parties that do not want the correct standards to be adopted, and some of them are trying to take advantage of this situation to jump on the market and withdraw the cash assets in it to achieve special benefits and speculations. Directly from Prime Minister Mohamed Shia Al-Sudani, who gave this issue great attention. Al-Alaq explained that “what the Central Bank announces of daily sales of foreign currency are not the operations actually in effect, but rather the requests that the Central Bank transfers externally to conduct import transactions, and what is implemented is less than what is announced in terms of numbers, because there are transactions that have notes, deficiencies, or lack thereof.” Conditions are met and rejected, and the daily sales rate actually executed daily reaches $155 million.” He added, "The failure to meet all requests is caused by merchants not entering the electronic platform, so they go to the market to buy dollars in cash, and the supply is what citizens circulate for the purposes of treatment, study, etc., and the current problem in Iraq is not related to a lack of cash reserves in it, as happens in a number of countries, but rather we have a large reserve." He can respond to requests and there are no restrictions." And he continued, “The problem is in the request itself, as some of those who want to buy dollars do not adopt the correct methods by going to the electronic platform, and we at the Central Bank presented two proposals to the government to meet their requests: the first includes easing tax procedures and making their percentage simple and deposited directly in accounts without entering into complications.” taxation and tax accounting, and the second proposal, which is that the entry of any goods into Iraq should be through a new mechanism that includes the presence of evidence of its official transfer, and the first proposal was accepted by the government by taking advantage of what was stated in the budget law, Article 48, and now work is underway to determine the categories covered, and the second proposal is currently being studied from The government must document the entry of goods and disclose the source of funding, which is one of the requirements of the Anti-Money Laundering Law.” He noted that "there is acceptance of the idea oftaxation and benefiting from what was stated in the budget law in Article 48, and now work is underway to organize it and define the categories and tax," noting that "the rise in the exchange rate in the market is temporary and the fate of merchants who buy dollars from the market is entering the platform and transferring in a legal manner." Then there will be no pressure on the exchange rate in the market. Al-Alaq added, however, by saying: “The penalties imposed on 14 local banks were not at the time of the current government, but rather at the time of the previous government, and the announcement of them a few days ago came after completing audits on all transfers and verifying their sources,” noting that “the phenomenon of speculators in the market who They spread radiation and create a crisis that leads to an increase in the price, and it does not change anything about the possibility of applicants for obtaining dollars from going to banks other than those that have sanctions.” Al-Alaq confirmed, “There is no indication or indication from the American side of including new banks within the sanctions,” noting that “the central bank will follow up on the issue of banks that have been subject to deprivation of the dollar and will enter into the process of reviewing and verifying them.” He revealed, "There are a number of proposals being developed to set up the trade process with the Iranian side and the payment mechanism within its framework, and work to provide means of payment through the Iraqi currency and prepare special cards for this issue." And he noted that "the Central Bank continues to put forward regulatory packages to stabilize the market, and the most important measure taken by the bank is to open the largest number of channels to conduct transfers, and now we have opened a direct channel to conduct transfers with China in its currency without going through complex operations, and these transfers are conducted quickly and easily." He stressed, "The bank started transfer operations in the Chinese currency with one bank, and now the number of banks has reached more than 10 banks." Al-Alaq announced "close dealings with European banks and in other countries in order to give transfer channels speed and help attract merchants." Al-Alaq explained, "There are certain arrangements being worked on between the Iraqi government and Iran, and between the American side regarding the payment of gas supply dues." He pointed out that "there are good efforts that are focused and escalating related to the campaign to support the Iraqi dinar," noting that "the strength of the Iraqi dinar derives not from the citizen, but from the capabilities of the country." He continued, "Prime Minister Muhammad Shia al-Sudani personally is one of the main supporters of the campaign to support the Iraqi dinar." Regarding the experience of generalizing electronic support, Al-Alaq explained that "the issue receives great interest from the Central Bank, and now a meeting has been completed with an international electronic payment company, and there is progress, but it depends on expanding the circle of culture in this aspect." And he stated, "The experience of electronic payment for citizens against government institutions has begun to succeed, and there are many departments that have joined, and we are working on a very important step, which is conducting transactions by paying via mobile phone, that is, a person can pay as soon as the other party has a (code) where any A person holding this code can pass the code on the device and enter his account, which is an advanced step even from using cards.” And on the size of Iraq's debts, Al-Alaq indicated, "The internal volume of Iraq's debts amounts to about 65 trillion, of which 46 trillion belongs to the Central Bank, and the rest belongs to government banks, and is paid in the form of payments, while the external debt is about 20 billion dollars, while the Iraqi reserve is more." Of 113 billion dollars,” noting that “the adequacy of the Iraqi reserves is high, and it guarantees foreign currencies and gold.” Regarding the Riyada initiative, Al-Alaq said, "The Prime Minister launched a Riyada initiative to qualify young people and enter them into small projects, and to embrace their capabilities and innovations," pointing out that "the Central Bank entered as a financing party by launching a project to establish the Riyada Bank, in order to absorb and finance these capabilities." And he indicated, “The Central Bank is in the process of establishing this bank, and there is great interest from us and private banks,” noting that “the bank has various initiatives, including financing small and medium projects and the ongoing housing lending initiative through the Real Estate and Housing Bank, as well as we have an initiative to support the use of solar energy, and there is An initiative for the displaced in partnership with the international institution, and we have financing previously funded industrial and agricultural projects, and the bank is working to complete its financing while it is re-studying the initiative related to the industrial sector. He pointed out, "It was dismissed from printing the category of twenty thousand dinars because of the existence of a category of 25 thousand dinars, and we do not wish to expand the current categories, because the project to delete zeros still exists." Regarding the structure of government banks, Al-Alaq said, "There is now coordination and focus on this file, and great interest from the Prime Minister personally, and periodic meetings in this field, and we have some ideas about these banks that we are working on implementing at the present time."

https://economy-news.net/content.php?id=35356

"3 AI-Driven Stocks That Will Be the Next Trillion-Dollar Companies" by Eric fry ( Investor Place-Nasdaq), 26 JULY

 Welcome to Smart Money! My name is Eric Fry, and I’m glad you’re here.

Wall Street has sold investors on the idea that they should start with “micro” analysis – the idea that they should make investment decisions by comparing things like price/earnings ratios, income statements or other company details.

But I do the opposite; I start with “macro” analysis.

I look for big-picture trends that drive huge, multiyear moves in entire sectors of the market.

I’m talking about trends that can spin off dozens of triple- and even quadruple-digit gains in just a few years.

Catching just one of these trends – at the right time – can help anyone accumulate enough capital to finance their dreams and to provide themselves with an enviable retirement…

When investors use a global macro strategy, they identify investment opportunities from a broad, global, top-down perspective, rather than by examining stocks one by one (a micro, bottom-up perspective).

And today, I want to highlight a trend you’ve likely been hearing about nonstop for the last few months: Artificial intelligence, or “AI.”

Investors know it… and CEOs really know it. Almost no company dares to conduct a conference call without highlighting the AI technology it’s adopting or developing.

During this year’s first-quarter conference calls, for example, the CEOs of S&P 500 companies used the term “AI” twice as often as they did during the previous quarter’s conference calls, according to an analysis by Reuters.

Because of the growing buzz around AI technologies, investors are rushing into AI stocks of all sorts – hoping to give their portfolios a much-needed boost.

AI is an incredibly powerful – almost scary-powerful – megatrend, and the implications of its deployment will supercharge choice companies into previously unachievable milestones… including the coveted trillion-dollar market cap.

Yes, you read that right – trillion with a “t.” It’s an inconceivable number, so much so that only four companies (at the time this report was written) have achieved that value: Amazon.com Inc. (AMZN), Microsoft Corp. (MSFT), Saudi Aramco, and Alphabet Inc. (GOOGL).

But with the power of AI, I believe that the next trillion-dollar companies are out there… and will reward their investors handsomely along the way.

So, here are my three picks for the next trillion-dollar AI companies…

Trillion-Dollar AI Stock No. 1: Intel

As a Bible verse (and 1960s Byrds lyric) tells us, “There is a time for everything.”

Even a time to add Intel Corp. (INTC) to your watchlist.

Admittedly, the PC-centric tech world that Intel once dominated is a thing of the past. Further, a string of strategic missteps and manufacturing miscues caused Intel to lose market share in every key product category.

Since 2016, Intel has lost its share in both CPU chips (central processing units) and GPU chips (graphic processing units). Nevertheless, Intel remains the top dog and continues to grow revenue year by year.

And yet, in a stock market environment that’s dominated by sexy “story stocks,” Intel is a wallflower.

But Intel is not simply a “chip company;” it has the potential to become the next trillion-dollar AI company…

Ahead of the Game

Because of the release of ChatGPT, an AI-powered “chatbot” that can do everything from answering questions to writing essays, AI-focused investing has become the newest Wall Street sensation.

But that’s much easier said than done, as AI is difficult to invest in directly.

However, as we peel away at this onion, we find that a handful of semiconductor companies might offer an indirect play on AI.

Names like IBM Corp. (IBM), NVIDIA Corp. (NVDA), and, yes, Intel top the ranks of AI-chip producers. In fact, in 2017, Intel became the first semiconductor company in the world to generate more than $1 billion in sales from AI chips.

Importantly, Intel is the only company of these three that continues to operate fabs – and plans to invest tens of billions into building next-generation ones here in the United States. (IBM and NVIDIA design chips here at home, and then outsource the actual production to overseas companies like TSMC and Samsung.)

But that paradigm may be ending quickly…

Unpopular Opinion

The U.S. government is working to cut off the flow of advanced technology to China by incentivizing chipmakers like Intel to manufacture AI chips here in the States, rather than in East Asia.

The strategic thinking here is very basic: If the Chinese can’t manufacture or access cutting-edge chips, then they can’t build the data-center capacity they would need to train AI systems.

In such a world, Intel becomes an obvious go-to solution for U.S. chip designers like IBM and NVIDIA. Perhaps that’s why IBM has already structured a joint venture (JV) with Intel to develop AI chips – and why NVIDIA has stated publicly that it will consider contracting with Intel for the first time to produce some of its chips.

Apart from political considerations, the AI market itself is on the verge of explosive growth. IDC estimates that worldwide spending on AI systems will nearly triple to $300 billion by 2026. From that level, McKinsey predicts the AI market will soar to $1 trillion by 2030.

Intel stands at the ready with a roster of offerings that can help power the AI Revolution.

The company’s NCS2 is its latest chip that was developed specifically for deep learning. Also, the brand-new Gaudi2 AI chip, designed by Intel’s Israel-based Habana Labs, is twice as fast as its first-generation predecessor.

Chips like the Gaudi line accelerate the particular math calculations at the heart of today’s AI technology. A third-generation Gaudi3 is already in development.

These powerful, next-generation chips enable AI models to “learn” by processing complex real-world data to find patterns more quickly and economically.

And even though Intel is still widely unpopular, I recommend adding it to your AI watchlist… because I can see it becoming one of the next trillion-dollar AI companies.

Trillion-Dollar AI Stock No. 2: Meta Platforms

Facebook’s parent could soon regain its trillion-dollar crown.

Social media giant Meta Platforms Inc. (META) first became worth $1 trillion in June 2021 on an accelerating advertising business. At the time, analysts believed the firm would generate $33 billion the following year.

That didn’t go to plan. The company would instead post $19 billion in free cash flow due to a slowdown in online advertising and mounting losses from its virtual reality business. Meta’s market capitalization sank as low as $250 million last year. (It’s inched back up to around $600 billion.)

Nevertheless, Meta is still a promising bet.

The firm’s aggressive cost-cutting measures and improving ad business were already showing positive results. And soft inflation figures from last month set the stage for a summer stock surge. Facebook is historically more sensitive than its peers to market cycles.

That means a recovery could happen faster than expected. FCF is now expected to recover to $23 billion this year and hit the “magic” $30-billion level in 2024. Heavy advertising spending from the 2024 presidential election means these figures will likely play out this time around.

Trillion-Dollar AI Stock No. 3: International Business Machines

The below chart tells you almost everything you need to know about the “new” IBM…

The iconic computer company’s revenues and operating margins are no longer tumbling. They are rising once again.

After hitting a 30-year low in Sept. 2021, IBM’s revenues and margins have been making a noticeable recovery. These favorable financial trends do not prove IBM has embarked on a new growth trend, but they do support that thesis.

Underdog to Burgeoning Champion

Over the past few years, IBM has been reinventing itself as a hybrid cloud and artificial intelligence company. To accelerate this transformation, the company has been pursuing an out-with-old-in-with-the-new growth strategy.

Since 2019, IBM has divested 17 legacy businesses, while also making more than 30 acquisitions. One of the most impactful acquisitions during its shopping spree was Red Hat, which IBM acquired in 2019 for $34 billion. Although the price tag seemed a bit rich at the time, this acquisition brought a market-leading hybrid cloud platform into the IBM family.

Red Hat’s capabilities are so formidable that more than 90% of Fortune 500 companies rely on its platform.

According to Grand View Research, the global cloud-computing market will grow 150% over the next seven years – from about $600 billion this year to more than $1.5 trillion in 2030. The global artificial intelligence industry will reach a similar size by 2030, according to Fortune Business Insights.

IBM is riding the current of both of these powerful megatrends.

The AI Domination

“IBM Watson” is the company’s core AI offering. It integrates with the Red Hat hybrid cloud to enable companies to pool data from numerous sources, then process that data to achieve objectives like predicting future outcomes, automating complex processes, and optimizing employees’ time.

Out in the real world, many companies accumulate and store data in the corporate equivalent of a “junk drawer.” Valuable information exists in every imaginable form…

• Company memos…
• PDFs…
• Charts and other images…
• Databases…
• Customer records…
• Call logs…
• Handwritten documents…
• Blog posts…
• And tweets.

These data are “unstructured,” to put it politely. But Watson can use AI to synthesize and process these data so that businesses can make informed decisions.

In other words, IBM promotes Watson AI as a solution that can enhance productivity across an entire enterprise.

Increasingly, enterprises are buying the AI-empowered solutions IBM Consulting is selling. Revenues from this division have jumped 18% during the last two years.

A Positive Future

Not only are IBM’s revenues and operating margins trending higher, but profits are also following suit. Operating income has jumped 77% during the last two years.

Because IBM’s fast-growing AI and hybrid cloud businesses will power most of its future growth, I expect the company to become a dominant leader of the AI boom.

Moving Forward

I’m so glad that you decided to further your journey to wealth by joining Smart Money.

Nearly every Tuesday, Thursday, and Saturday, you’ll receive an email from me, wherein I’ll share insights on the latest market “megatrends”, how to act on them and more.

Get started by visiting your Smart Money website here.

Regards,

Eric Fry

Editor, Smart Money

https://investorplace.com/smartmoney/3-ai-driven-stocks-that-will-be-the-next-trillion-dollar-companies/

Coffee with MarkZ 07/26/2023

MarkZ Wednesday  Update- Some highlights by PDK-Not verbatim

MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context.  Be sure to consult a professional for any financial decisions

Member:  Morning hugs to everyone! Hope we have a big day!

Member: Nader posted a good video of Iraqis protesting the decreasing value of the dinar

MZ: yes Nader posted a video about Iraq people taking to the streets to protest today because of the climbing parallel market rates. The IQD is losing value against the dollar right now. This is costing Iraqi’s dearly. They are upset. 

MZ: They had been promised a change in rate. The government knows this,. They have passed the budget. The people have seen the steps the people were told had to be done before they got their rate change and prosperity. The people are growing impatient. The US is trying to milk it as long as they can. I believe the US is one good crisis away from having to throw in the towel.

MZ: Meanwhile Iraq is doing everything it can to get form under America’s thumb. It’s a battle and I bleive Iraq is winning. Maybe not as quick as we want them to win though. Now there is more pressure and the people are taking to the streets and insisting they fulfill those political promises.  This is a good thing for us.  Even them talking about how it’s the Us holding things up is a good thing for us. They have a short window. 

MZ: This continued growing backlash is started to erode away all the confidence in our government.  The US also knows they have a short window. The US is running out of excuses as to why it hasn’t already been done…..and the US is hurting for cash. We are one good bank run away from the Us having to kiss Iraq’s butt…imo…and saying please, please, please and go, go, go…..This will erase the debt problems in the Us when they let Iraq finally RV their currency

MZ: I believe Iraqis taking to the streets is forcing it….It’s time. The can is to heavy now for politicians and bankers to keep kicking it. The people are coming. They are sharpening their pitchforks. . 

Member: The US government is pure evil and the cause of most of the world’s problems…imo

Member: IF THE CBI GAVE A RATE IT WOULD CRUSH THE ONES WHO DEAL IN DOLLARS... ’NUFF SAID

                      

Member:  the U.S. needs to have Iraq compliant in order to move forward. The WTO and others also want them independent...The plan. global coordination. GESARA/NESARA. problem..reaction...solution.

Member: Good news the rumor is the UN released Iraq from chapter 7 after 2 decades.

Member: (From Dinar Guru):  Mnt Goat   Well the RV has not yet happened in Iraq nor has the reinstatement of the dinar. As far as the banks are concerned there is still the US Treasury OFAC sanctions in place on the Iraqi dinar. This is not just my opinion but FACT...I was told by my CBI contact to expect the new rate on FOREX, however it did not occur, as stated. So...I inquired on my weekly call to Iraq and asked what happened. I was told it was stopped due to the US Treasury audits of many of the major banks in Iraq...

MZ: It continues to be quiet on the RV side with tier 3 group leaders and bond holders. Getting anything cohesive or coherent out of bond folks is impossible. 

Member:  Phil G reported last night EBS was attempted Sunday, blocked by black hats, they are out of moves , expect EBS anytime

Member:  Phil G also says we are one step away...check mate is about to happen at any time..Yippee

Member:  Charlie Ward said nothing would happen until the financial crisis happens regarding the RV

MZ: “ Gold backed BRICS currency off the agenda for now but bloc expansion will threaten petrodollar –Lobo Tigre”   Its all back and forth. Putin says it’s still on the table as do Russian leaders….The west – the EU is getting desperate to cloud this news. 

MemberL Everyone needs to stop and reflect on how Massive this task of taking out the Cabal is...God Bless everyone...

Member:  Happy birthday to those celebrating and prayers for those in need!

                         

Member: Thanks Mark and Mods….have a great day everyone. 

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Budget Monies Dispersed?🔥Big Rate Change Coming?!🤔Iraq Dinar RV Updates ...

"Will Iraq succeed in quest to join World Trade Organization?," 26 JULY

 Will Iraq succeed in quest to join World Trade Organization?

Iraq’s 19-year-long push to join the World Trade Organization (WTO) is gathering pace. Baghdad initially submitted a request to join the international trade body back in 2004. It currently sits as an observer member, while it works through the process of implementing regulations, strategies, and internal policies necessary to meet the conditions for full membership.

Israa Al-Jabari, the international trade coordinator at Iraq’s trade ministry, last summer told state media that her ministry is in charge of working to prepare the required documents for joining the WTO. “Iraq has the industrial, agricultural, and trade exchange qualifications. However, it needs to study and develop the applicable policies to align with the organization’s regulations,” Jabari said, adding that the country is “currently in the middle of the road to join.” The official insisted that it is important for Iraq to join the WTO to improve its access to global trade, industry, and economic opportunities, as well as aligning national economic and commercial policies with international standards.

As part of its efforts to join the WTO, the trade ministry has also held a workshop to coordinate with representatives of other key stakeholders, including the Iraqi Contractors Federation, the Iraqi Businessmen Union, and the Iraqi Private Banks League.

Suha Al-Kifaee, managing director of the International Islamic Bank who attended the workshop, told Amwaj.media that the meeting resulted in a number of recommendations that will help facilitate Iraq’s full participation in the WTO. Kifaee said accession to the organization “would contribute to the development and expansion of progress achieved in some financial services and would also ameliorate the foreign investment environment through the passing of a banks and investments law and the central bank law.” Such steps would open up Iraq’s isolated banking system to investment from foreign banks and help to transition the country away from a centralized model dependent on oil rents towards a more liberal, market economy.

Difficult road

The WTO was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT). Headquartered in Geneva, the organization helps set the ground rules for international trade agreements between states and regional trade blocs. It also facilitates dispute resolution.

The WTO’s 164 member states account for most international trade and include all of the world’s largest economies. The last country to join the organization was Afghanistan in 2016. There are 25 countries which currently have observer status, including Iran, Iraq and Syria. Iraq’s other neighbors—Jordan, Kuwait, Turkey, and Saudi Arabia—are members.

Mazhar Mohammad Salih, an advisor to the Iraqi government on economic affairs, told Amwaj.media that remaining isolated from the global trade regime comes at a great cost to Iraq. In his view, Baghdad loses out on involvement in decision making, investment opportunities, and dispute resolution facilitated by involvement in the WTO. Full membership would enable Iraq to mitigate risk by trading and benefiting from investment in ways that are governed by internationally-recognized rules.

Speaking to Amwaj.media, Salih highlighted the need for “Iraq’s entrance and regularity in the global economic sphere through the World Trade Organization and through dealing with international groups under terms which formally apply to all at a time when the world is still divided between northern and southern countries, or advanced industrial countries and developing countries.”

Iraq’s failure to join the WTO is partly a legacy of former leader Saddam Hussein’s regime (1979-2003). For instance, an international trade embargo and sanctions levied under Chapter VII of the UN Charter were imposed following the 1990-91 Gulf War, Salih said. “Iraq is still grappling with the repercussions, which leave the country with a negative economic development environment which hampers its natural integration within the global market,” he added.

Chapter VII sanctions are applied to countries deemed to threaten international peace and security. The penalties were initially applied to Iraq in 1990 following its invasion of Kuwait. They were only removed by the UN Security Council in 2013, with Iraq fully exiting Chapter VII status in Feb. 2022 pursuant to its final compensation payments to Kuwait. The latter should give Iraq a boost in its efforts to join the WTO.

Mindful of the changing regional context, Salih also argued that WTO accession is important for Iraq to facilitate economic integration with its neighbors and Arab League member states. This is particularly vital since many of these states are members of the WTO and, therefore, bound by its rules. “Any trade facilitation within the framework of regional agreements become ineffective if they are less than the facilitation under the World Trade Organization framework,” he underscored.

Going beyond signatures

The benefits of joining the WTO are evidenced in the ambition of successive Iraqi governments since 2004to pursue accession to the organization. But finding the political will to implement the policies and reforms that will allow the country to reach that goal are another matter.

Iraqi economist Haider Al-Rubaie noted that Iraq has since the fall of Hussein’s regime in 2003 faced “international obligations towards specialized agencies, entities, and organizations…Finding the right ground to implement these international obligations represents a first step towards adopting any new consensual international obligation.”

“The core of the issue is not signing international agreements…but rather in the state’s ability to implement and comply with them and the size of the advantages and benefits the country will accrue as a result,” Rubaie told Amwaj.media. Iraq has been working on WTO accession for nearly two decades now, holding discussions with the organization and other stakeholders, but has been unable to complete the process. This has held Iraq back, he argued.

“We realize the importance of Iraq joining the World Trade Organization,” Rubaie said, while also acknowledging “its dangers for countries whose economic, financial, and political structures are incomplete or fragile at times.” Putting aside the advantages, and possible pitfalls, Iraq has a long road ahead in its quest to join the trade bloc. Whether that ambition will be realized any time soon remains to be seen.

https://amwaj.media/article/will-iraq-succeed-in-quest-to-join-world-trade-organization