We have a new car company. For now it is still Chrysler, but it might change to Fiat-Chrysler or something like that. One of the most amazing bankruptcies of all time was finalized today, when the company won its battle to erase its secured debt after the Supreme Court declined to issue a ruling. This unusual situation was made possible by the involvement of the Obama administration’s auto task force, which provided billions in financing and helped negotiate a deal with the company’s stakeholders. A new deal was arranged in which Fiat acquired ownership in the company. And a sweet deal it was. Fiat will receive up to a 35 percent stake in the automaker in exchange for sharing the technology Chrysler needs to create smaller, more fuel-efficient vehicles.They didn’t have to put any money. Unbelievable!
This is really something. Fiat was never able get a foot hold in American market. Now they are basically given domestic car company, with established dealers and some market share. Just how big share is probably something nobody really knows at the moment, but it is definitely higher than zero. That is what Fiat had before. Fantastic deal, courtesy of American taxpayers. Congratulations, Mr. Marchionne! One more thing: new company is released from any liability claims related to vehicles it sold before the asset sale to Fiat. Wish I could make deals like that.
Japanese Yen was discussed in the last post. While I’m bearish Yen longer term, I added a sell order in NZD-JPY yesterday. Price never went down to that level, Yen just kept getting weaker. Which triggered buy orders I had in other JPY pairs, like the beast.
One was at 159.50 seeking 100 pips. This happened rather fast and a second order was initiated at 160.65. This one has a target of 300 pips for now and longer outlook for the length of the trade. I don’t believe it will happen during next few hours. By the way, that Kiwi-Yen sell order is cancelled.
Pound is acting strong across the board and it will hopefully continue. Of course, the way it works, as soon as I write it down, it will likely drop. Regardless, other buy orders are placed, this time in GBP-CAD.
This set up has two buy orders, one at 1.7900 and another on a breakout above 1.8215. Both have 300 pips range of positive expectations- targets.
Yen pairs will probably retrace a little bit. If that happens, I’ll be looking for additional buy situations. Don’t really have specific price levels in mind, price patterns will dictate any possible entry levels.
Mike K.
Mike, we all wish to make deals like that!
That’s one way to fix America- by giving it away!
That’s pretty funny BJ. Give it away and let somebody else worry.
This gbp/cad chart looks ugly to me, but the pair moves a lot. How many different pound pairs can you be in at the same time without getting overextended. You wrote something about it using Yen as example some time ago, but I don’t recall.
Maybe two different pairs in any one account, no more. Otherwise I’d use multiple accounts.
It is a sweet deal indeed for Fiat. Who will they give GM away to?
[...] it took to develop. I will be revisiting GBP-JPY in near future. Another activity in Pound was a GBP-CAD trade from earlier on. This one was closed at the same time. I was waiting for a breakout at 1.8215, [...]