Popular Chinese video-sharing and social networking service, TikTok, has joined Huawei in becoming a battleground between the US and China. While US President Donald Trump previously tweeted he would ban the Chinese app he has since given approval for Microsoft to acquire it by 15 September.
However, for the approval to acquire the Chinese-owned video app Trump has said he wants a cut of the deal for the US Treasury. On the weekend Trump spoke to Microsoft CEO, Satya Nadella, and relayed the demand for a 'very large percentage'.
Did you know you can speculate on the price of Microsoft shares using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
In a press conference on Monday, Trump suggested that the payment could come from any company that acquires TikTok or even the Chinese seller. However, details were vague on how the White House could force either of the parties to pay the treasury as the situation suggested is unheard of.
US officials have cracked down on companies they suspect are gathering sensitive data of American citizens for China. Trump has given a deadline of 15 September for any suitor to acquire TikTok, at which point the app would be banned for American users.
It's not clear how China's ByteDance, the company which owns TikTok, can separate its American, European and Asia operations and how its investors would react. Currently, Microsoft are working on how they could satisfy the administration's conditions in acquiring a part of, or the whole of TikTok.
More to come.
How to trade Microsoft shares with Admiral Markets UK Ltd
If you are feeling bullish or bearish on Microsoft's share price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in Microsoft at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, #MSFT, Monthly - Data range: 1 December 2006 to 4 August 2020. Please note: Past performance is not a reliable indicator of future results.
Did you know that you can open a free demo trading account so you can test your trade ideas and theories regarding the price direction of thousands of different stocks and shares in a virtual trading environment? Open your free account today by clicking on the banner below:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3.With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6.Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.