Observe. Think. Chat. Do. Trade. Repeat…
It is then expected to gradually decline to 10.2 billion by 2100, which is 6% lower than anticipated a decade ago.
The UN in 2022 had reportedly estimated the world population would peak at 10.4 billion by the 2080’s.
See full report here.
The Consumer Price Index (CPI), a comprehensive gauge for goods and services costs, saw a 0.1% decrease from May 2024, bringing the annual rate to 3%, which is near its lowest point in over three years.
When removing the unstable food and energy prices, the core CPI rose by 0.1% monthly and 3.3% annually. This year-over-year core rate increment is the least since April 2021.
Inflation for the month was tempered by a 3.8% drop in gasoline (petrol) prices, which balanced out the 0.2% rises in both food prices and housing costs.
The newly elected Labour Party will welcome this broad-based recovery as Prime Minister Keir Starmer begins his first week in office.
The S&P 500 index rose by 1.02%, ending the day at 5,633 and marking its seventh consecutive day of gains. The Nasdaq Composite increased, achieving a new all-time high closing at 18,647.
This year has seen the S&P 500 close at record highs some 37 times, with the Nasdaq following closely with 27 record high finishes.
The Dow Jones Industrial Average grew by 429 points, finishing at 39,721.
Note: figures rounded
This surge followed a rally in U.S. Big Tech stocks, fueled by optimism over a potential Federal Reserve rate cut moving ever closer.
The Nikkei climbed almost 1% to close at 42,224 driven by gains in technology shares, while the comprehensive Topix index advanced to finish at 2,929.
Plato – was an ancient Greek philosopher of the Classical period who is considered a foundational thinker in Western philosophy and an innovator of the written dialogue and dialectic forms.
Plato’s most famous contribution is the theory of forms (or ideas). Along with his teacher Socrates, and Aristotle, his student, Plato is a central figure in the history of philosophy.
Visit Wikipedia for more information about Plato.
Preparing for a two-day session on Capitol Hill, the central bank chief stated that the economy and labour market continue to be robust, even with some recent slowdown. Powell noted a slight reduction in inflation, affirming that policymakers are determined to reduce it to their target of 2%.
“At the same time, in light of the progress made both in lowering inflation and in cooling the labour market over the past two years, elevated inflation is not the only risk we face,” he reportedly said. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.”
Sounds to me like he is paving the way for the first interest rate reduction.
The comment ties-in with the upcoming one-year period since the Federal Open Market Committee (FOMC) last increased the benchmark interest rates.
China’s CPI was expected to rise by 0.4% year-on-year in June, according to poll conducted by Reuters. However, the actual increase was only 0.2%. Lacklustre domestic demand has contributed to keeping inflation subdued in China, unlike major economies such as the U.S., where prices have remained elevated.
The PPI, which measures factory-gate prices, dropped by 0.8% from a year ago, aligning with expectations. This reflects the ongoing challenges faced by manufacturers and businesses.
Stripping out more volatile food and energy prices, core CPI rose by 0.6% year-on-year in June. While this is slightly slower than the 0.7% increase for the first six months of the year, it indicates a relatively stable inflation trend.
Notably, pork prices surged by 18.1% in June compared to a year ago, while beef prices fell by 13.4%.
In summary, China’s inflation remains subdued due to weak demand, even as other global economies experience higher price pressures. Policymakers will closely monitor these trends to ensure economic stability.
Note: this information is based on data from the National Bureau of Statistics and reflects the situation as of 10th July 2024.
Asia-Pacific markets witnessed highs on Tuesday 8th July 2024, mirroring the gains on Wall Street where the S&P 500 and the Nasdaq Composite ended at record highs. India’s Nifty 50 index also hit an all-time high of 24401.2
Investors are anticipating the forthcoming U.S. consumer price index release to discern the Federal Reserve’s direction on interest rates.
Pundits have moved this year from four 0.25% rate reductions to one and now maybe to two with the first in September 2024. The Fed trickles decisions out from its fickle stance and each time the markets move in anticipation like a lap dog eagerly awaiting a pat. It almost doesn’t matter what the Fed does – markets want to go up. However, a rate reduction and good economic and earnings news will drive the markets even higher, for a while.
Markets are currently anticipating earnings reports. The Federal Reserve, having considered the latest economic reports, has influenced the markets with a mix of indifferent decisions. AI and technology have significantly shifted the stock market landscape, with the potential for further growth – provided that earnings sustain the pace of AI investments and expenses.
Both the S&P 500 and the Nasdaq Composite achieved record highs again overnight, alongside Japan’s Nikkei and Topix reaching new highs too.
The Nikkei 225 climbed to settle at 41580.17 after hitting a new high of 41769.35. The Topix also gained, closing at 2895.55, having touched a peak of 2907.21.
$315 trillion or $315,000,000,000,000 is a daunting number, it’s massive. In 2024, the global GDP reached just $109.5 trillion, just over a third of the global debt figure.
To provide some perspective, with the world population at roughly 8.1 billion, if the debt were distributed evenly, each person would shoulder about $39,000 in debt.
As global debt reaches unprecedented levels, concerns naturally arise about its implications and origins.
Global debt includes borrowings by households, businesses, and governments.
Household debt, which many are familiar with, comprises mortgages, credit cards, and student loans. At the beginning of 2024, it stood at $59.1 trillion.
Corporate debt, utilized by businesses for operations and growth, reached $164.5 trillion, with the financial sector contributing $70.4 trillion.
Government debt, on the other hand, finances public services and projects without raising taxes. It can be obtained from other nations or institutions like the World Bank and the IMF, or through bond sales, which are essentially promises to pay with interest from the state to investors.
Public debt was reported to be $91.4 trillion. While often perceived negatively, debt can be advantageous, supporting individuals in education and homeownership, aiding business expansion, and providing governments with means for economic development, social expenditures, or crisis management.
Historical evidence shows that public debt has been around for at least 2000 years, mainly for establishing settlements and financing wars, with governments accruing significant debts from conflicts such as the Napoleonic Wars.
Debt engulfs us all and is here to stay, but at what cost to society?
And who do we owe?
The surge in artificial intelligence (AI) has significantly increased the demand for data centres, essential for the ‘exploding’ tech sector. This necessity has led Europe to consider spatial alternatives for digital storage, aiming to diminish reliance on energy-intensive ground facilities.
The Advanced Space Cloud for European Net zero emission and Data sovereignty (ASCEND), a 16-month study investigating the viability of deploying data centres in orbit, has reportedly reached a ‘very encouraging‘ conclusion, according to the report.
The ASCEND study, coordinated by Thales Alenia Space for the European Commission and valued at 2 million euros ($2.1 million), asserts the technical, economic, and environmental viability of space-based data centres.
“The idea [is] to take off part of the energy demand for data centres and to send them in space in order to benefit from infinite energy, which is solar energy,” according to a spokesperson for ASCEND.
Data centres are crucial for advancing digitalization; however, they demand substantial electricity and water to operate and cool their servers. The total global electricity consumption from data centres could reach more than 1,000 terrawatt-hours in 2026 – that’s roughly equivalent to the electricity consumption of Japan, as reported by the International Energy Agency.
The ASCEND study is not alone in exploring the potential of orbital data centres. Microsoft, which has already trialed the use of a subsea data centre – positioned 117 feet deep on the seafloor, is collaborating with companies such as Loft Orbital to explore the challenges in executing AI and computing in space.
Tesla’s shares ended on Friday at $251.55, marking a 27% increase for the week.
The automaker announced on Tuesday 2nd July 2024 that its second-quarter vehicle deliveries surpassed forecasts.
The U.S. economy added slightly more jobs than expected in June 2024 though the unemployment rate increased, the U.S. Labor Department reported Friday.
Non-farm payrolls increased by 206,000 for the month, better than the 200,000 Dow Jones forecast though less than the downwardly revised gain of 218,000 in May, which was cut sharply from the initial estimate of 272,000.
The unemployment rate unexpectedly rose to 4.1%, matching the peak since October 2021, presenting a conundrum for Federal Reserve officials as they consider their next steps in monetary policy. Projections had indicated that the unemployment rate would remain stable at 4%.
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.
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.
Tories trashed as the Labour Party achieve landslide victory – but will this translate to an era of better politics or will it deliver just more of the same?
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.
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.
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.
Tungsten has the highest melting point among all metals, which makes it exceptionally suitable for high-temperature 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.
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.
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.
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.
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
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.
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.
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.
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.
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.
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.
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.
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!
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.
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.
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!
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.
“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
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%.