Author: essay

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Bitcoin in a spin as it drops below $55000

Bitcoin in a downward spiral

More than $170 billion has been erased from the cryptocurrency market due to concerns over the Mt. Gox bitcoin payout.

Bitcoin’s price plummeted over 6% in 24 hours, reaching $54,237, marking its lowest point since late February 2024.

The total cryptocurrency market lost over $170 billion in market capitalization within the same timeframe, according to CoinGecko.

The Mt. Gox bankruptcy estate’s trustee announced on Friday that repayments in Bitcoin have commenced for certain creditors via specified cryptocurrency exchanges.

What is, or was, Mt. Gox Bitcoin?

The Mt. Gox Bitcoin payout pertains to the reimbursement process for creditors of the defunct Mt. Gox cryptocurrency exchange. Previously the world’s largest Bitcoin exchange, Mt. Gox fell in 2014 due to a significant hack, leading to the loss of about 740,000 Bitcoins.

Following extensive legal battles and postponements, the exchange is poised to start disbursing roughly $9 billion in Bitcoin and Bitcoin cash to its creditors. This payout is noteworthy as it entails a substantial return of bitcoin to users, which may influence the cryptocurrency market dynamics.

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Labour Party win 2024 UK election in landslide victory after giving the Conservative Party a drubbing!

Labour Party win 2024 election

The U.K.’s opposition Labour Party secured a significant parliamentary majority in the 2024 general election, displacing the incumbent Conservatives after 14 years in power.

Labour surpassed the threshold of 326 majority required to govern without coalition support as outgoing Prime Minister Rishi Sunak acknowledged the loss. Sir Keir Starmer, the leader of the centre-left Labour Party, is set to become the next prime minister, having declared victory in the early hours.

The Labour Party’s massive majority was achieved as Europe lurches to the right and the UK turns left – very contrasting differences.

The strength and size of the win mustn’t allow the Labour Party to railroad policy.

The Labour Party campaigned on the slogan ‘change’ – but what does that really mean? A change from what to what exactly? Time will tell – but I have my doubts. Having lived through many political changes and many Party promises that slowly drifted away to reality.

It looks very much to me that the win was a vote against rather than a vote for.

However, it was refreshing to witness democracy very much at work in the UK election.

Change!

Come on then Labour – let’s now see what you can do for the people of the UK now that you have trashed the Tories!

You have the majority!

Time for that change.

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Japan’s Nikkei passes 41000 – then trims gain slightly

Nikkei hits new record

On 5th July 2024, Japan’s benchmark Nikkei 225 index climbed above 41,000 before retreating from its record close of 40,913.65.

The Nikkei 225 serves as a crucial barometer for the Japanese stock market, representing the performance of prominent companies on the Tokyo Stock Exchange. It continues to stand at historically elevated levels.

Nikkei one year chart closes at 40912 after passing 41000 for the first time

Nikkei one year chart closes at 40912 after passing 41000 for the first time
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An important rare Earth metal

Tungsten rare Earth metal

Tungsten is a critically important rare earth metal, renowned for its unique and valuable properties.

Tungsten has the highest melting point among all metals, which makes it exceptionally suitable for high-temperature applications.

Key aspects of its importance

Industrial and technological applications

Tungsten is used in many industries where hardness, high density, high wear resistance, and high-temperature resistance are required. This includes mining, construction, energy generation, electronics, aerospace, and defence sectors. It is used in weapons, autos, electric car batteries, semiconductors and industrial machinery.

Fact: approximately 2Kg of tungsten goes into every electric vehicle.

Alloys

Metals are frequently alloyed with Tungsten to enhance their strength without substantially adding to their weight. This property is vital for uses like arc-welding electrodes and heating elements in high-temperature furnaces.

Significance

Tungsten is acknowledged as a critical metal because of its economic significance and the scarcity of its sources. It is reported that China produces the majority of the world’s tungsten, controlling approximately 80% of the supply of this rare earth metal.

Durability and flexibility

Tungsten’s durability, flexibility, and resistance to corrosion contribute to its popularity across various industries and applications. It ranks among the hardest and most resilient materials found in nature.

These characteristics render tungsten not just crucial but also indispensable for numerous high-tech applications. The rarity of tungsten and the intricate nature of its extraction and refinement processes enhance its value even further.

World suppliers of tungsten

According to Statista.com the global tungsten market was valued at over $5 billion USD in 2022. It’s projected to grow significantly, with estimates suggesting it could reach over $9.5 billion USD by 2030

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Nasdaq and S&P 500 both hit new highs as markets close early for U.S. Independence Day!

U.S. Independence Day

The S&P 500 reached new heights in a shortened trading session on Wednesday 3rd July 2024, with investors seemingly dismissing lacklustre economic data.

The S&P 500 closed at a new high of 5537, while the Nasdaq Composite finished the session at 18188, buoyed by rallies in technology and AI stocks like Tesla and Nvidia. Both indices reached new all-time highs during the session and closed at record levels.

The Dow Jones Industrial Average lost just closed down at 39308.

Trading volume was subdued as the New York Stock Exchange closed early at 1 p.m. ET. The exchange will remain closed on Thursday 4th July 2024 for Independence Day celebrations.

S&P 500: One-year chart – index closed at a new record high

S&P 500 One-year chart closed at new record high

Nasdaq Composite: One-year chart closed at new record high

Nasdaq Composite: One-year chart closed at new record high
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U.S. private payrolls grew by just 150,000 in June 2024, below expectations

Workers

In June 2024, private companies created 150,000 jobs, falling short of the revised figure of 157,000 in May 2024 and the estimate of 160,000.

The leisure and hospitality sector led the way with 63,000 new jobs, marking the largest increase among the categories tracked by the payroll processing firm ADP.

U.S. age growth slowed to 4.9% year-on-year, the smallest rise since August 2021.

Markets generally shrugged off the lacklustre figures as Tech and AI driven indices continued their march to achieve ever higher positions.

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Common investing mistakes to avoid

Wise stock selection

Avoiding common investing and trading pitfalls is crucial. Here are some typical investing errors you should try to avoid.

Warren Buffett wisely cautions against investing in businesses that are not well understood. It is crucial to have a deep understanding of the company, its market sector, the broader industry, and its financial stability before committing to an investment.

Understand your investment

Take time to research whether it be a company, fund, unit trust or savings account. Make sure you understand what you are doing. Not understanding the investment is a massive failing.

Love the company, but resist falling in love with it. An emotional attachment to a specific stock can obscure your judgement. Keep in mind that investing should be a process of making rational decisions based on data, not on personal emotions.

Patience

Successful investing demands patience. Don’t anticipate immediate results; give your investments the necessary time to mature. Resist the urge to frequently check the markets and make hasty uninformed decisions.

Investment turnover

Excessive trading, known as churning, can result in significant transaction fees and tax consequences. It is advisable to adopt a long-term investment strategy and minimize superfluous trades.

Attempting to time the market

Consistently timing the market is a difficult task. Instead, the emphasis should be on the duration of market involvement. Steady contributions and maintaining investments yield benefits in the long-term.

Getting even

Clinging to underperforming investments with the hope of just breaking even can be harmful. It’s crucial to assess each investment on its own merits and be prepared to take losses when needed. Run the winners!

Diversify

Investing all your funds in a single stock or asset class heightens the risk. Mitigate this by diversifying your investments across various asset types, industries, sectors and regions.

Cut emotions

Fear and greed often result in unwise decisions. It’s crucial to remain disciplined, adhere to your investment plan, and resist the urge to make hasty decisions driven by emotions.

You

Always maintain honesty with yourself when investing. Do not persuade yourself of anything other than the FACTS regarding your investment choices!

Keep in mind that investing is a journey where learning from mistakes is an integral part of the experience. By steering clear of these common pitfalls, you’ll set yourself up for greater long-term success.

Spread out your investments. Diversify. Aim for the long term. Remove emotion. Let the winners run. And doe your RESEARCH!

RESEARCH! RESEARCH! RESEARCH!

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S&P 500 closes above 5500 for the first time

S&P Bull run record

On 2nd July 2024, the S&P 500 reached a significant milestone, closing above 5500 for the first time in its history.

This impressive achievement has prolonged the blistering rally of 2024, during which the index has reached 32 record highs. Since July 2023, the S&P 500 index has surged by more than 1000 points.

The rise in U.S. equities has been propelled by robust corporate earnings, the artificial intelligence (AI) boom, and the anticipation of interest rate reductions. Although some analysts warn that the market might be stretched too far, others are forecasting additional increases.

Many analysts have now raised their target for the S&P 500 to end the year at around 5700.

One year S&P 500 chart July 2023 to July 2024

One year S&P 500 chart July 2023 to July 2024
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The Fed says progress has been made in the fight against inflation

Federal Reserve Inflation

Federal Reserve Chair Jerome Powell has expressed satisfaction with the current progress in the inflation battle but indicated a desire for additional positive data before considering a reduction in interest rates.

“We want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy,” he said.

While Powell acknowledges progress in inflation, he remains cautious about acting prematurely and jeopardizing the trend of decreasing prices.

Markets moved up after Powell’s comments.

Update: A Fed statement released after the market closed stated that – Fed says it’s not ready to cut rates until ‘greater confidence’ inflation is moving to 2% goal

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Euro zone inflation eases to 2.5% but core measure misses

EU inflation

Inflation in the euro zone dipped to 2.5% in June 2024, the European Union’s statistics agency said on Tuesday 2nd July 2024, in line with expectations.

However, core inflation, excluding energy, food, alcohol and tobacco, remained at 2.9% from the prior month, just missing the 2.8% forecast.

The rate of price rises in services also failed to move sticking at 4.1%.

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Amazon plans discount store to fend off the rise of Temu and Shein

Online shopper

Amazon is reportedly preparing to launch a new store section on its site dedicated to low-priced fashion and lifestyle items.

The move is aimed at competing with e-commerce upstarts Temu and Shein, both of which have ties to China.

The new storefront will offer unbranded products, with numerous items priced below $20. Amazon plans to ship these goods directly from China, targeting a delivery window of round 10 days. This initiative is a strategic move by Amazon to counter increasing competition and broaden its assortment while preserving competitive pricing.

While the precise launch date has not been announced, the storefront is anticipated to begin accepting products in the autumn of 2024.

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FACT or FICTION: there is a creature in our world that never dies

Jellyfish

It is indeed amazing and absolutely true – when the medusa (adult jellyfish) or Turritopsis Dohrnii comes to the end of its life, it descends to the ocean’s depths and commences decomposition – it starts to decay but remarkably, its cells then reassemble, not into another medusa, but into polyps.

From these polyps, new jellyfish are born. In essence, the jellyfish reverts to a previous stage of its life cycle, thus beginning life anew.

This extraordinary capability has led to it becoming known as the “immortal jellyfish.”

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Free TV streaming service TUBI to launch in UK

TV streaming

Tubi is a complimentary streaming service akin to Netflix, Hulu, and Amazon Prime Video. It boasts a substantial library of more than 20,000 movies and television shows available for streaming on your smart phone, smart TV, or streaming device.

As a free service, you’ll encounter ads while accessing the content. Tubi operates on an advertising-based model, which enables them to offer their wide-ranging collection at no cost. Content will be available from Lionsgate, NBCUniversal, Disney and Sony Pictures Entertainment.

It has been owned by Murdoch’s Fox Corporation since 2020. As of May 2024, the service boasts 80 million monthly active users in the U.S.

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China manufacturing and Japan’s GDP contracts – Asia markets mixed

Economic data

Over the last weekend of June 2024, China released its official PMI figures, with the manufacturing PMI remaining at 49.5, the same as in May 2024, indicating a second consecutive month of contraction.

On Monday 1st July 2024, Japan adjusted its first-quarter GDP figures, showing a contraction of 2.9% year-on-year, a revision from the previously reported 1.8%.

Asia markets started the second half 2024 mixed as investors assessed June business activity data from China as well as Japan’s GDP revision.

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U.S. inflation at 2.6% in May 2024 from a year ago

U.S. PCE

The core Personal Consumption Expenditures (PCE) price index witnessed a modest increase of 0.1% (seasonally adjusted) for the month and has risen 2.6% from the previous year – broadly as expected by analysts.

May 2024 experienced the lowest annual rate since March 2021, the Federal Reserve’s inflation target is 2%.

Personal income grew by 0.5% for the month, surpassing the estimated 0.4%. However, consumer spending saw a 0.2% rise, falling short of the 0.3% expected.

Data according to U.S. Bureau of Economic Analysis

Note: PCE represents Personal Consumption Expenditures. It measures consumer spending in the United States by tracking expenditures on goods and services. The PCE price index particularly tracks variations in household living costs, serving as a primary indicator of inflation.

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“Meet Bill and Bet!”

UK election betting scandal

UK Election betting scandal mars politicians and the police!

Just when you think the state of UK politics couldn’t get any worse… it does!

The ‘clicky’ inner circles of both the Conservative and of the Labour Party with their mucky little antics – placing bets on the date of the UK election – KNOWING THE OUTCOME!!

Why would anyone behave in this way?

No wonder the public are utterly disenfranchised with politics. The morally bankrupt behaviour and greed shown by some in both the Conservative and Labour Party is breathtaking and bereft of any basic moral compass.

These people are broken and should not be in positions of trust representing our country.

And the police too!

UK election betting scandal
“Meet Bill and Bet!”

Billy and Betty off to place their bets!

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Japanese yen slumps to fresh 38-year low against the U.S. dollar

Yen slumps against dollar

On Friday 28th June 2024, the Japanese yen dropped to its lowest point in 38 years, surpassing the 161 threshold against the dollar reached for the first time since December 1986.

The yen has faced challenges, slipping beyond the 160 mark again.

Since the Bank of Japan concluded its negative interest rate policy and reportedly abandoned its yield curve control policy in March 2024, the yen has been on a consistent decline.

After this policy change, the yen breached the 150 level against the U.S. dollar and hit 160 in late April 2024, which prompted intervention by the country’s finance ministry.

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Two asteroids star in Earth weekend fly-by starting 28th June 2024

Asteroid in Earth fly-by

There are two massive asteroids that will fly past Earth this week.

Asteroid (415029) 2011 UL21

Size: Approximately 7,600 feet long

Distance from Earth: It will pass by Earth at a distance of more than four million miles (over 17 times further than our moon).

Visibility: Visible with small telescopes through Sunday, appearing brightest on Friday.

Asteroid 2024 MK:

Size: Between 400 and 850 feet long

Distance from Earth: It will fly significantly closer, passing at about three quarters the distance to the moon.

Visibility: Best view from Hawaii or South America, but also visible from the southern United States.

NASA

NASA Asteroid live

Bennu asteroid

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“SS Sunak – rats deserting the Sinking Ship!”

Sinking Ship!

SS Sunak – rats deserting a Sinking Ship!

UK Election: I don’t know if it’s just me but… where are all the Conservative Party cabinet BIG hitters?

Sunak has very little support, if any from his cabinet!

Where is Jeremy Hunt, the Chancellor of the Exchequer for example?

He’s not that visible on the election campaign trail. His absence could easily be construed as ‘distinctly unhelpful.’

Where is he?

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Amazon achieves a $2 trillion market cap for the first time

2 trillion

During intraday trading on Wednesday 26th June 2024, Amazon’s market capitalisation surpassed $2 trillion.

The company now stands among other tech giants like Nvidia, Apple, Alphabet, and Microsoft, which have also achieved a market cap of over $2 trillion ($3 trillion for in Nvidia Apple and Microsoft).

Amazon’s shares have experienced a significant increase in the past year.

Amazon one year chart from 27th June 2023 – 26th June 2024. Share price: 193.61

Amazon one year chart from 27th June 2023 – 26th June 2024. Share price: 193.61
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“Here… I think you may need this!”

Take cover!

UK election engulfed in yet another politically charged fallout from scandalous greed driven morally bankrupt politicians, and police. All connected to the inner workings of a failed government bereft of any sense of moral duty. The opposition Party are implicated too!

Why?

Is this really the best we can do?

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Nvidia rebounds after half a trillion market cap slump

Hot AI

To put this figure into some perspective, the loss is comparable to the GDP output of a small country, such as Norway, Singapore, or the UAE, for example.

Global semiconductor stocks experienced volatility on Tuesday following a decline in Nvidia’s shares from the previous trading sessions.

Shares of chip firms in Europe and Asia fell in early trade as investors reacted to Nvidia losing more than $500 billion in market capitalization over three trading days. Some of the stocks recouped losses, however, as shares in the U.S. chipmaking giant recovered around 6 – 6.5% as of Tuesday 25th June 2024.

This follows a significant drop in Nvidia’s share value, which fell 13% over three consecutive sessions from the record highs achieved on Thursday 20th June 2024.

On Monday 24th June 2024, Nvidia’s stock closed down 6.7%, marking its second-largest decline of the year, yet the shares began to recover in early trading on Tuesday 25th June 2024.

Last week, the company surpassed Apple and Microsoft to become the most valuable U.S. company, achieving a market capitalization of over $3.4 trillion. However, by the end of Monday, Nvidia’s market value had declined by more than $540 billion from its intraday record on Thursday 20th June 2024.

Nvidia reported that the demand for its highly sought-after artificial intelligence graphics processing units (GPUs) continues to be strong.

Companies such as Microsoft, Google, Amazon, and Meta are investing billions of dollars in these chips to enhance their data centres and cloud services.