 Good day fellow investors! We discuss a lot of investing theory on this channel and I wanted to make it more practical by making a weekly recap of the stock market and investing news that we can apply the theory on and see how it works in practice and see how the market breeds. So in this video I'll discuss a few things that happened that I found very interesting and that we can learn a lot from. A company that we analyzed, Heinz Celestial, said to work board deal with activist investor, so probably it will be taken over. I think I recommended the stock when it was at the lows in the last six months. The stock is much higher up. Now why didn't I invest? I recommended it, I made an analysis. Why didn't I invest? I didn't invest because the price of interest ratio was 15. So I didn't know if this will happen. There was a probability that this will happen takeover but the price of interest ratio 15 was giving me a 7% earnings return. So I say pass. If it would have been a earnings return of 10 or there was growth or something then I would have invested. However it was too risky for me. That's why I didn't invest. Now it will probably be taken over so somebody wants to bet on a higher price. It can be in the short term. It will probably be taken over at 48.50 so there is still some upside. However we don't know when it will be taken over. Something very interesting is Nike declared their earnings and you can see the stock price dropped on the day of earnings. Let's see what happened. So flat sales growth, okay, however revenue, Nike 2% converse was the main loss there. So something not going on with that brand. North America footwear sales fell 3%. The people in North America can't have a million pair of sneakers. You buy what you need and so we can't expect much growth from North America. However sales in China were up 12%. The market is domestic bias, behavioral finance focused on North America. China is where the future is and 1.5 billion people, 3 billion in Asia will be wearing sneakers in the next 10-20 years as people in North America do. And that's where the value is and the growth is. Gross margin fell for unfavorable currency rates. That's not nice but something to keep an eye on. Nevertheless the growth online, the stability in the US will work well for Nike. Then Nestle gives grounds to billionaire Lloyd, prioritizing profit. Now Nestle is mostly owned by pension funds, thus short-term profits that Lloyd wants to see. He wants to see higher stock price are not good for long-term value creation and let's see what's going on. Since Lloyd disclosed the position stock price is high, you can see in the last few months from 68 to 85-86 and now Nestle is going to sell 10 billion of assets of the US chocolate business in order to buy back stocks as much as 20 billion francs, 21 billion dollars. So the price earnings ratio is 27, the book value is 4.2 and they are going to use the money to push the stock price higher so that Lloyd, a hedge fund manager, can make money now. Pension funds, me and you if you only through your pension fund, will get squeezed and there won't be any book value more to protect the company. There won't be any businesses more to make revenue, to grow revenue, to grow earnings. So shareholder destroying example in the making, Nestle and hedge funds. Emerging markets fear from North Korea, brought it down, declining. So emerging markets when people sense risk they start to pull money from the exotic. So you always have to look at the fundamentals, what's going on and look at uncorrelated assets. Investing with the herd will bring you to herd like return. So if you invest in the emerging market ETF here will is very risky. ETFs like to buy hot stocks and not the best stocks. Thank you for watching. I hope you like the weekly recap. We'll talk microeconomics, we'll talk finances, we'll talk politics. You can expect every week a weekly recap. I'll see you in the next video.