Category: Info

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UK inflation in surprise fall, a ‘massive’ drop all of 0.1%

UK inflation

ONS says inflation dropped in August 2023

According to the Office for National Statistics (ONS), the UK’s inflation rate dropped unexpectedly in August 2023 to its lowest level since the start of Russia’s invasion of Ukraine, which led to sharp rises in energy and food costs which were already on the rise due to the pandemic.

The Consumer Prices Index (CPI) rose by 6.7% in the 12 months to August 2023, down from 6.8% in July. The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 6.3% in the 12 months to August 2023, down from 6.4% in July.

The ONS said that the main factors behind the fall in inflation were lower prices for clothing, footwear, and second-hand cars, partly offset by higher prices for transport services and recreational goods. 

UK Inflation 1989 – 2023 (ONS data)

The ONS also said that the inflation rate was still high compared with historical levels, and that it expected it to rise further in the coming months due to increases in energy bills and supply chain pressures.

You can find more details and data about the UK inflation and price indices on the ONS website or on the Consumer price inflation, UK: August 2023 time series.

Jeremy says its OK!

Chancellor Jeremy Hunt said the news showed ‘the plan to deal with inflation is working’. Well Jeremy, your comments are encouraging – if you truly believe a 0.1% fall in inflation is ‘working‘. Where were you when the Bank of England lost control of the ‘2% inflation remit’.

UK inflation
‘Don’t worry – the money is being printed as we speak. Come and get your share now!’

Where were you when the excessive ‘uncontrolled’ government borrowing infected the UK’s economy? With all that ‘free’ money sloshing around the system, what did you really expect would happen..?

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‘All that is gold does not glitter, Not all those who wander are lost; The old that is strong does not wither, Deep roots are not reached by the frost.

J R R Tolkien

From the ashes a fire shall be woken,
A light from the shadows shall spring;
Renewed shall be blade that was broken,
The crownless again shall be king’.

J.R.R. Tolkien 1892 – 1973

John Ronald Reuel Tolkien CBE FRSL was an English writer and philologist. He was the author of the high fantasy works The Hobbit and The Lord of the Rings.

‘All that is gold does not glitter, Not all those who wander are lost; The old that is strong does not wither, Deep roots are not reached by the frost.’
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NHS Strike action again, with nearly 8 million waiting in the queue

Consultants and doctors joint strike

British Medical Association-organised strike

Consultants and junior doctors in England are holding their first joint strike in the history of the NHS.

Waiting list

The latest data from NHS England, states the number of people waiting to start routine hospital treatment is at a record high of 7.68 million at the end of July 2023. This is up from 7.57 million in June 2023 and the highest since records began in August 2007. 

The waiting list has increased by more than 3 million since February 2020, the last full month before the start of the pandemic. The NHS is facing many different challenges due to the impact of Covid-19 on its services, staff and resources. This data suggests that the waiting list was already at 4 million even before the pandemic hit.

The latest strike action is a major factor now contributing to the NHS waiting list. Some reports suggest that over 850,000 routine operations and procedures have been cancelled so far this year, 2023 due to strike action alone.

Factors that may have contributed to the historical rise in the waiting list

  • The suspension or reduction of non-urgent care during the peak of the pandemic to free up capacity for Covid-19 patients.
  • The ongoing infection prevention and control measures that limit the number of patients that can be treated safely in hospitals.
NHS Strike action again, with nearly 8 million waiting in the queue
  • The staff shortages and burnout that affect the availability and productivity of the workforce.
  • The increased demand for health services as people seek help for conditions that were delayed or worsened by the pandemic.
  • Strike action.

The NHS is working hard to tackle the backlog and improve access to care for patients

  • Increasing funding and capacity for elcare, such as by opening more operating theatres, expanding community services and using the independent sector.
  • Implementing new models of care, such as virtual consultations, digital triage and shared decision making, to reduce unnecessary referrals and appointments.
  • Prioritising patients based on clinical urgency and need, rather than waiting time alone, to ensure that those who would benefit most from treatment are seen first.
  • Supporting staff wellbeing and retention, such as by offering flexible working, training and development opportunities and mental health support.

What about health education?

Government action

The government has also pledged to invest an extra £36 billion over the next three years to help the NHS recover from the pandemic and reform social care. However, some experts have warned that this may not be enough to address the underlying issues that affect the NHS performance and quality, such as workforce planning, public health funding and health inequalities.

How did it get so bad?

Lack of money or management failures? It has to one of these two. Throwing funds at an already badly managed ‘business’ will just amplify the problem allowing even more waste. And as the ‘system’ tackles the problem, more and more people will needlessly continue to suffer.

Fix our health service by fixing the people first!

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‘The journey of a thousand miles begins with one step’. Lao Tzu

Steps

Lao Tzu (also spelled Laozi or Lao-Tze) was a semi-legendary ancient Chinese philosopher who is credited with writing the Tao Te Ching, a classic of Chinese philosophical-religious literature. 

The Tao Te Ching is the main source of Taoist teachings, which emphasize harmony with the natural flow of the Tao, the creative and binding force of the universe.

‘The journey of a thousand miles begins with one step’.

Chinese Legend

According to legend, Lao Tzu met Confucius, the founder of Confucianism, and impressed him with his wisdom. He also tried to teach people the way of the Tao, but found them unwilling to listen. He then decided to leave civilization and retire into seclusion. Before he departed, he wrote down his teachings in the Tao Te Ching at the request of a border guard. Some Taoist sects believe that he then became an immortal.

Culture influence

Lao Tzu’s influence on Chinese culture is immense. He is regarded as the ancestor of the Tang dynasty (618-907 CE), one of the most prosperous and powerful periods in Chinese history. He is also revered as a deity in religious Taoism and Chinese folk religion, under the name Laojun, one of the ‘Three Pure Ones’. 

His teachings have inspired many other philosophers, poets, artists, and leaders throughout history and across the world.

First Steps
‘The journey of a thousand miles begins with one step’.
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Instacart 75% plunge in valuation

Instacart IPO

Venture firms take a hit

Sequoia Capital and Andreessen Horowitz, two of Silicon Valley’s most high-profile venture firms, are poised to take a massive hit on their investments in grocery delivery company Instacart, a deal that closed in 2021 as tech stocks were soaring.

In its latest IPO prospectus update, Instacart said it plans to sell shares at $28 – $30 a share, valuing the company at around $10 billion at the top of the range. That’s more than 75% below where Sequoia and Andreessen invested in early 2021. At that time, Instacart sold shares at $125 a pop valuing Instacart at $39 billion.

Valuation plunge

The reason for the valuation collapse is that the U.S. economy reopened after the pandemic, then inflation spiked and the Federal Reserve started raising interest rates, which were stuck near to zero throughout the Covid pandemic.

Borrowed money suddenly became expensive again, and quickly too. Tech’ companies in early stages of development, need access to research and development finance – interest rate increases restricted investment.

Instacart 75% plunge in valuation from original price of $125 per share

Then consumers started shopping again on foot, and with capital costs increasing, investors began demanding that companies find a strong path to profitability.

IPO

Instacart is trying to crack open an IPO market that’s been closed for venture-backed companies for nearly two years, so it won’t be easy. However, the ARM IPO recently may re-adjust that view.

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Bank of England hits all-time confidence low

BoE

Confidence in Bank of England (BoE) is a measure of how much the public trusts the central bank to control inflation, set interest rates and maintain economic stability. 

According to the latest Inflation ‘Attitudes Survey‘ conducted by the Bank of England in August 2023, confidence in Bank of England has plummeted to an all-time low.

Survey

The survey found that only 19% of the respondents were satisfied with the way the Bank of England was doing its job to set interest rates to control inflation, while 40% were dissatisfied. The net satisfaction rate was -21%, which is the lowest since the survey began in 1999.

2% inflation please

The main reason for the low confidence is the high inflation rate that has been persisting in the UK for more than a year. Inflation reached a peak of 11.1% in December 2022, and was still at 6.8% in July 2023, well above the Bank of England’s target of 2%. The Bank of England has raised interest rates 14 times since the end of 2021, from 0.1% to 5.25%, to try to bring inflation down, but this has also increased the cost of borrowing and living for many households and businesses.

Slow

Some critics have argued that the Bank of England (BoE) acted too slowly and too cautiously to raise interest rates when inflation was rising, while others have warned that raising rates too high and too fast could harm the economic recovery from the Covid-19 pandemic. 

The public’s expectations of future inflation are also high, with a median answer of 2.9% for inflation in five years’ time, almost one percentage point higher than the Bank’s target.

Credibility

Confidence in Bank of England (BoE) is important because it affects how people behave in terms of spending, saving, investing, and borrowing.

Bank Governor
Bank of England hits all-time confidence low according to survey

Loss of faith

If people lose faith in the central bank’s ability to control inflation and maintain economic stability, they may act in ways that could worsen the situation, such as hoarding money, demanding higher wages, or taking on more debt.

Therefore, it is crucial for the Bank of England to communicate clearly and effectively with the public about its policies and actions, and to restore trust and confidence in its role as an independent and credible institution.

It is also useful to take notice of early warning signs, such as the economic red alert posed by inflation after the pandemic recovery started.

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Gatwick cancels flights due to air traffic control staff shortages

'Suckers!'

Flights at Gatwick Airport were cancelled, delayed or diverted at short notice on Thursday 14th September 2023 due to a shortage of air traffic controllers.

Gatwick confirmed some cancellations, while the website FlightRadar24 said hundreds of flights in and out of the airport were delayed.

The National Air Traffic Services (Nats) apologised for its staffing shortages.

Gatwick Airport said it expected a normal service on Friday, 15th September 2023.

The disruption comes just over two weeks after a technical issue at Nats that led to 2,000 flights being cancelled across the UK.

EasyJet expressed frustration at Thursday’s delays and cancellations, while Ryanair boss Michael O’Leary called on Nats’ boss to resign.

Mr O’Leary reportedly said: ‘It is unacceptable that more flights and hundreds of passengers are suffering delays to/from Gatwick Airport due to Nats CEO, Martin Rolfe’s blatant failure to adequately staff UK ATC’.

‘Airlines are paying millions of pounds to Nats each and every year and should not have to see their passengers suffer avoidable delays due to UK ATC staff shortages’.

Update

Gatwick Airport said it was ‘operating as normal’ on Friday after a shortage of air traffic controllers caused disruption to flights overnight on Thursday, 14th September 2023.

'Suckers!'
‘Frequent flyers… suckers!’
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AI pumped technology can surpass human intelligence ‘big time’ – according to SoftBank’s CEO

Arm AI chip

Masayoshi Son says AI to surpass human intelligence and that SoftBank will ‘rule the world’. Oh dear…!

Main points in brief

  • Masayoshi Son reportedly said AI is capable of helping solve the world’s biggest problems and could potentially surpass the intelligence of humans.
  • He said he was a ‘big believer’ in AI and that Arm, a chip design company owned by Softbank, was a ‘core’ beneficiary of the AI revolution.
  • He said AI would supercharge human ability and that Softbank would ‘rule the world’ and win the latest generative-AI race thanks to its heavy investment in startups and its majority stake in Arm.
  • He also acknowledged that AI posed some threats to humanity if mishandled and that society should regulate it to protect humankind.

Masayoshi Son and SoftBank

The 66-year-old founded SoftBank, which still controls about 90% of Arm Holdings after the IPO, back in 1981 after graduating from the University of California, Berkeley. Forbes estimates his net worth at more than $24 billion, making him the world’s 69th richest person.

Son made his early reputation as an investor in Japan’s mobile phone industry, and went on to become one of the first backers of Yahoo as well as Alibaba. Son continues to serve as the chairman of Arm’s board of directors.

AI does pose some threats to humanity if mishandled, Son said, likening its potential misuse to the dangers of speeding, or drinking alcohol while driving a car. But, more positively, AI can also help solve key world problems like diseases or help mitigate or recover from natural disasters, he reportedly said.

‘AI, society should regulate to protect humankind’, Son said. ‘However, it has more merit than the demerits. So, I think I’m a believer. I’m optimistic that AI is going to solve the issues that mankind couldn’t solve in the past‘.

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EU interest rates up again to 4%

Eurozone interest rates

Eurozone interest rates have been hiked again to a record high by the European Central Bank (ECB).

The bank raised its key rate for the 10th time in a row, to 4% from 3.75%, as it warned inflation was expected to remain too high for too long.

The latest increase came after forecasts predicted inflation, which is the rate prices rise at, would be 5.6% on average in 2023. However, the ECB signalled that this latest hike could be the last for now.

‘The council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target’, the bank reportedly said. The central bank originally expected inflation to be ‘transitory’.

It added that it expected inflation in the 20-nation bloc to fall to around 2.9% next year and 2.2% in 2025.

As in other parts of the world, the eurozone has been hit by rising food and energy prices that have squeezed household budgets and from the Russia/Ukraine war. Central banks have been increasing interest rates in an attempt to tame inflation and slow rising prices.

More expensive to borrow

The theory behind increasing rates is that by making it more expensive for people to borrow money, the ‘consumer’ will then have less excess cash to spend, meaning households will buy fewer things and then price rises will ease. But it is a balancing act as raising rates too aggressively could cause a recession.

Interest rates in the UK are currently higher than in the eurozone at 5.25%, but UK inflation is also higher at 6.8%, and the Bank of England is expected to raise rates again next week.

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NASA ‘UFO’ or Unidentified Anomalous Phenomena (UAP) report

UFO

Unidentified Anomalous Phenomena (UAP)

NASA has recently released a report on Unidentified Anomalous Phenomena (UAP), which is another term for UFOs. The report is based on a yearlong study of hundreds of UAP sightings by scientists and data experts. 

In brief

NASA found no evidence that aliens are behind the UAPs, but it also could not rule out the possibility. The report said that some of the objects must have travelled through our solar system to get here.

NASA said that the study of UAPs will require new scientific techniques, including advanced satellites and artificial intelligence. The agency also announced a new director of UAP research to establish a robust database and analysis process.

NASA said that UAPs are important for national security and air safety, as some of them pose potential threats to aircraft and military operations. The agency also said that it will share data and findings with more transparency and collaboration.

NASA said that many UAP sightings can be explained by natural phenomena, human-made objects, or sensor errors, but some remain unexplained and anomalous. The report estimated that only about 2% to 5% of the total database are thought to be truly anomalous.

‘Take me to your leader…’

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Arm juggernaut of an IPO

Arm Holdings

Ultra successful IPO for arm

Investors gobbled up UK microchip designer Arm Holdings at its U.S. debut on the Nasdaq on 14th September 2023, sending its market value soaring to $60 billion (£48.3 billion).

The shares ended the day worth more than $63 each, after climbing by almost 25% from the high end start of $51 per share set by Arm.

The sale was the biggest initial public offering of the year, raising $4.87 billion for owner Softbank Group.

Despite some concerns surrounding the company’s exposure to risks in China and a potential AI slowdown – the shares soared.

British tech

A star of the British technology industry, Arm designs microchips for devices including smartphones and game consoles. It estimates that some 70% of the world’s population uses products that rely on its chips, including nearly all of the world’s smartphones. And with AI nestling in on the horizon, the future potential for Arm is massive.

Arm stock chart 14th September 2023

Arm said it expects the total market for its chip designs to be worth about $250 billion by 2025, including new growth areas such as data centres and cars.

Legacy

Many of Arm’s royalties come from products released decades ago. About half of the company’s royalty revenue of $1.68 billion in 2022, came from products released between 1990 and 2012.

Bright Future

The future looks bright for Arm but the company is trading at more than 25 times its most recent full year of revenue, and at more than 100 times profit.

And that could be where things get tricky for Arm in the not too distant future. Projections for future profits will be interesting, esecially if it’s to keep up with Nvidia for instance.

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UK mortgage arrears by value climbs

Mortgage arrears

The value of UK mortgage arrears jumped by almost a third in April to June 2023 compared with the same period last year, according to the Bank of England (BoE).

Outstanding mortgage debt is now £16.9bn, the highest since 2016, it said.

Mortgage costs have risen for millions as the Bank has repeatedly hiked interest rates to slow soaring prices.

Some experts warn defaults will rise, but others say the number unable to repay remains relatively low.

According to the BoE, in April-June 16% of mortgages in arrears were new cases, which it said ‘was little changed compared to the previous quarter’.

It added that the proportion of mortgages in arrears was the highest since 2018.

See UK debt burden here

UK mortgage arrears
Debt burden – the value of UK mortgage arrears jumped by almost a third in April to June 2023
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Excessive radiation fears for iphone 12

Apple iphone 12

France ban Apple iphone 12

According to news reports, France has banned the Apple iPhone 12 because it emits too much electromagnetic radiation, which could be harmful to human health. 

The French watchdog (ANFR) said that the iPhone 12’s specific absorption rate (SAR), which measures the rate of radio frequency energy absorbed by the body, was above the legal limit of 4.0 watts per kilogram in tests simulating the phone being held in the hand or kept in a pocket. 

Dispute

Apple disputed the tests and said that the iPhone 12 was certified by multiple international bodies and compliant with all global radiation standards. The French digital minister said that Apple had two weeks to respond and fix the issue, or else he would order a recall of all iPhone 12 devices sold in the country. 

The minister also said that France would share its findings with other regulators in the European Union, which could lead to a wider ban of the phone.

France ban Apple iPhone 12 due to excessive radiation fears

What is electromagnetic radiation?

Radiation from mobile phones is a type of electromagnetic radiation that is emitted by cell phones and cordless phones when they send and receive signals. Electromagnetic radiation is a form of energy that travels in waves or particles through space.

It can be classified into two types: ionizing and non-ionizing radiation. Ionizing radiation has high energy and can damage DNA, which may increase the risk of cancer such as; x-rays, radon, and cosmic rays. Non-ionizing radiation has low energy and cannot damage DNA directly – such as; radio waves, microwaves, infrared, visible light, and ultraviolet light.

Cell phone radiation

Cell phones use radiofrequency (RF) waves, which are a type of non-ionizing radiation, to communicate with cell towers and other devices. RF waves have frequencies ranging from 0.7 to 80 GHz, depending on the generation of the cell phone (2G, 3G, 4G, or 5G). The human body can absorb some of the RF energy from cell phones, which may cause some heating to the area of the body where the phone is held (e.g., the ear and head). However, it is suggested this heating is not enough to raise the core body temperature or cause any harmful effects.

Research

There has been a lot of research on whether cell phone use can cause health problems, such as cancer, in humans. However, it has been reported that the evidence so far is not conclusive and does not show a clear link between cell phone use and cancer risk. There could be a link but we do not know 100%… yet?

Some studies have suggested that there may be a small increase in the risk of certain types of brain tumors (such as acoustic neuromas) for people who use cell phones for a long time or frequently. However, other studies have not found any consistent evidence to support this.

The incidence of brain and central nervous system cancers has not changed significantly during the time that cell phone use has increased dramatically. Therefore, more research is needed to understand the possible effects of cell phone use on human health.

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U.S. inflation ticks up from 3.2% to 3.7% according to August data release

U.S. Inflation

Latest U.S. inflation figures

The latest inflation figures for the U.S. show that the annual inflation rate rose to 3.7% in August 2021, up from 3.2% in July 2021. This was mainly driven by a sharp increase in energy prices, which jumped up 10.5% over the last month. Gas (petrol) prices accounted for more than half of the increase in the overall inflation rate.

Core inflation

However, core inflation, which excludes the volatile food and energy sectors, slowed down to 4.3% in August 2021, down from 4.7% in July 2021. This suggests that the Federal Reserve’s ’11’ rate hikes are having some effect on cooling the inflationary pressures in the economy. Some sectors, such as used cars, medical care services and airfare, saw price decreases in August 2021.

Will the Fed keep interest rates unchanged at its next meeting on September 20, 2021, as we wait to see the full impact of its previous rate hikes on the economy?

However, the Fed may still raise interest rates later this year if inflation remains persistently above its target of 2%. Higher interest rates could introduce more volatility to the U.S. economy and potentially trigger a recession.

July U.S. inflation data here

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UK economy contracts July 2023 due to… rain!

UK GDP contracts

The UK economy shrank more than expected in July due to strike action taken by NHS workers, doctors and teachers – ONS data shows.

Wet weather also hit the construction and retail industries, the Office for National Statistics (ONS) said, causing the economy to contract by 0.5%.

The figures were worse than analysts had predicted and continue a trend of weak economic growth in the UK.

Blame the weather and strike action for the contraction

Office for National Statistics (ONS) for UK GDP as at 13th September 2023..

Monthly real GDP is estimated to have fallen by 0.5% in July 2023, with falls in all three main sectors, following growth of 0.5% in June 2023.

GDP showed 0.2% growth in the three months to July 2023 when compared with the three months to April 2023, with growth in all three main sectors.

Services output was down 0.5% in July 2023, after growth of 0.2% in June 2023, and was the main contributor to the fall in GDP in July.

Production output fell by 0.7% in July 2023, after growth of 1.8% in June 2023.

The construction sector fell by 0.5% in July 2023, after growth of 1.6% in June 2023.

Not a recession, but the weather gets the blame for slowing up UK progress!

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New Arm IPO substantially over subscribed

Arm AI chip

Oversubscribed

The upcoming IPO of Arm Holdings, the British chip designer that is owned by SoftBank Group is already oversubscribed by more than 10 times. Bankers plan to stop taking orders by the afternoon of 12th Deptember 2023.

This means that there is a massive demand for the shares and the company may raise more money than expected. The IPO could end up as much as 15 times oversubscribed by Wednesday 13th September 2023, which would indicate a very high valuation for Arm.

High end valuation $55 billion

Arm filed for its IPO at $47 to $51 a share, which could value the company at $54.5 billion at the high end of the range. However, Arm is still reportedly considering raising the price range of its IPO. This could easily make Arm one of the most valuable tech companies in the world.

ARM IPO
ARM IPO over subscribed September 2023

Arm is a key part of the chip supply chain, designing semiconductors found in most of the world’s smartphones, as well as other devices and applications. 

Arm is poised to become a bigger and more profitable business, as it shifts to high-margin chips and benefits from the boom in cloud computing and artificial intelligence (AI). 

Arm’s CEO Rene Haas has been pitching investors on this pivot and the growth prospects of the company.

What a success story.

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The Magnificent Seven Tech Stocks – STOCK WATCH

The Magnificent Seven

Top tech stocks

The Magnificent Seven is a term to describe seven tech’ stocks that have been surging in 2023.

  • Meta Platforms (formerly Facebook), the social media giant that also owns Instagram, WhatsApp, and Oculus.
  • Apple, the maker of the iPhone, iPad, Mac, Apple Watch, AirPods, and other popular devices and services including cloud and Apple TV streaming service.
  • Amazon, the e-commerce leader that also operates AWS, Prime Video, Alexa, and Whole Foods.
  • Alphabet, the parent company of Google, YouTube, Gmail, Google Cloud, and Waymo.
  • Microsoft, the software company that owns Windows, Office, Azure, LinkedIn, Xbox, and Teams.
  • Nvidia, the semiconductor company that produces graphics cards, gaming devices, data center solutions, and AI platforms.
  • Tesla, the electric vehicle maker that also develops solar panels, batteries, and autonomous driving technology.

Dominant

These seven stocks are considered to be dominant in their respective fields and have strong growth prospects driven by innovation and artificial intelligence (AI).

They have outperformed the broader market and attracted many investors who are looking for exposure to the tech’ sector. Some analysts believe that these stocks will continue to lead the market in the future, while others caution that they may face regulatory challenges, competition, or valuation issues.

Approximate combined market cap of the Magnificent Seven tech stocks

The approximate combined market cap value of the Magnificent Seven as of September 2023 is approximately $11.8 trillion.

  • Apple: $2.5 trillion
  • Microsoft: $2.3 trillion
  • Alphabet: $1.9 trillion
  • Amazon: $1.7 trillion
  • Nvidia: $0.8 trillion
  • Meta Platforms: $0.9 trillion
  • Tesla: $0.7 trillion

Note that these values will change over time as the stock prices fluctuate.

A way to trade the tech sector is through funds

There are many funds that can trade tech stocks, depending on your investment objectives, risk tolerance, and preferences.

Technology mutual funds: These are funds that invest in a diversified portfolio of technology companies across different industries, such as software, hardware, internet, cloud, biotech, and more. Technology mutual funds can offer exposure to the growth potential of the tech sector, as well as reduce the volatility and risk of investing in individual stocks. 

Some examples of technology mutual funds are Fidelity Select Technology Portfolio (FSELX), Columbia Global Technology Growth Fund (CGTYX), and Schwab U.S. Large-Cap Growth Index Fund (SCHG).

Which tech fund to invest in?

Technology exchange-traded funds (ETFs): These are funds that track an index of technology stocks and trade on an exchange like a stock. Technology ETFs can offer low-cost and convenient access to the tech sector, as well as allow investors to choose from different themes, such as cybersecurity, artificial intelligence (AI), cloud computing and more. 

Some examples of technology ETFs are Invesco QQQ Trust (QQQ), Technology Select Sector SPDR Fund (XLK), and VanEck Vectors Semiconductor ETF (SMH).

Technology index funds: These are funds that replicate the performance of a specific technology index, such as the Nasdaq 100, the S&P 500 Information Technology Index, or the Morningstar U.S. Technology Index. Technology index funds can offer broad and passive exposure to the tech sector, as well as low fees and high tax efficiency.

Some examples of technology index funds are Fidelity NASDAQ Composite Index Fund (FNCMX), Vanguard Information Technology Index Fund Admiral Shares (VITAX), and iShares Morningstar U.S. Technology ETF (IYW).

NOTE: These are not recommendations. Investments may go up or down. Your money is at risk!

Always do your own research…

REASEARCH! REASEARCH! RESEARCH!

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‘Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree’.

Apple Tree

Martin Luther 1483 – 1546

Martin Luther was a German theologian and leader of the Protestant Reformation in the 16th century. He is known for his writings and teachings on topics such as justification by faith, the authority of Scripture, the priesthood of all believers, and the freedom of the Christian.

He also translated the Bible into German and wrote many hymns, catechisms, and commentaries.

He is widely regarded as one of the most influential figures in the history of Christianity.

Apple Tree
‘Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree’.

See other quotes

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Apple $200 billion loss in just a few days – NASDAQ falls

Apple

50 million iPhones sold in China every year

Apple sells around 50 million iPhones in China annually. A sweeping ban is what investors fear and that spells trouble for Apple.

Apple stock drops after The Wall Street Journal reported a day earlier that Chinese authorities have curbed the use of the iPhone. Apple’s flagship product will no longer be legal to use by some central government officials.

The potential crackdown threatens to dissrupt Apple’s sales as China accounts for about 20% of Apple’s total revenue. Uncertainties about the news prompted investors to retreat from Apple postions, leading to a 6% drop in Apple shares in two days. More than $200bn of market cap was wiped out.

$200 market cap drop

Apple shares fall $200 billion in just days September 2023

The iPhone commeth

Adding to the concern, Apple is just days away from its key event. On the 12th september 2023, the company is expected to officially announce the launch of its newest smartphone – the iPhone 15.

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UK Farmers ‘struggling’ to harvest crops due to labour recruiting crisis

Farmring in th UK

Attracting seasonal workers remains a problem for some UK farmers, despite the UK government’s attempts to increase the number of visas available for people from overseas.

There is a shortage of short term farm labour in the UK to pick crops, especially potatoes. Some of the possible causes and consequences of this situation range from Brexit to the war in war Ukraine.

Problems

Brexit has reduced access to temporary workers coming from the EU, while war in Ukraine has disrupted the flow from a country that has provided a large proportion of the UK’s harvest workers in recent years.

The UK government has a seasonal workers pilot scheme that offers short-term visas to those helping with food production, but the farming industry says it needs more than the 38,000 visas that have been made available.

High employment levels in the UK and alternative work opportunities in other sectors such as warehouses and delivery have made it harder for farmers to recruit local workers.

The labour shortage has led to food waste of home-grown fruit and vegetables, as some crops are left to rot in the fields or are harvested less frequently.

Unharvested crops left to rot in a field due to worker shortage in the UK

Food waste and supply chain

The food supply chain is also affected by the lack of workers in slaughterhouses, dairy farms, and other processing facilities.

The food waste and supply disruption could have negative impacts on the environment, the economy, and the consumers’ access to fresh and affordable produce

And it can be especially challenging for farmers in very rural areas, where transport is more difficult and the pools of workers available are likely to be smaller.

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India’s ‘massive expansion’ could play key role in global economic growth

India expands

Many economists stronly believe that India’s stellar economic trajectory alongside strong forecasts for some Southeast Asian countries will be important drivers for future global growth.

The next decade, could see Asia Pacific become the fastest growing region of the world economy. India, Indonesia, the Philippines and Vietnam will most likely be among the world’s fastest growing emerging markets over the next 10 years.

India’s economy grew 7.8% in the June quarter, marking the fastest pace of growth in a year.

The momentum in the Indian economy looks really strong at the moment, economists suggest. Some forecasts expect that India will surpass Japan to become the third largest economy by 2030, with the country’s GDP projected to rise from $3.5 trillion in 2022 to $7.3 trillion by 2030.

As a region, Asia-Pacific’s growth is expected to strengthen from 3.3% last year to 4.2% this year, according to economic projections.

Over the next decade, we expect that about 55% of the total increase in the world’s GDP will come from the Asia-Pacific region.

Where does this leave the U.S. and China?

Still, the U.S. will remain an important driver of the global economy, accounting for some 15% of the world’s growth over the next decade.

China will also still be pivotal in this growth story, contributing to about one-third of the total increase over the same period, analysts suggest. China’s recovery has been weaker than expected and the expected ‘growth momentum’ has wained.

China has been affected by a slew of economic data broadly missing expectations.

As a whole, analysts expect global growth to come in at 2.5% this year and next. But please bear in mind these are forecast and move regularly.

Ashoka Chakra – the Flag of India

The flag of India is a horizontal tricolour of saffron, white and green, with a navy blue wheel called the Ashoka Chakra in the centre. The flag was adopted on 22nd July 1947, after India gained independence from British rule.

It is based on the Swaraj flag, which was designed by Pingali Venkayya and modified by Mahatma Gandhi. The colours and symbols of the flag have different meanings and interpretations.

Saffron represents courage, sacrifice, Hinduism and Buddhism. White represents peace, truth, purity and other religions in India. Green represents faith, fertility, Islam and Sikhism.

The Ashoka Chakra represents the law of dharma, the cycle of life and death, and the ancient Indian emperor Ashoka who spread Buddhism across Asia.

India’s flag is also known as the Tiranga, which means ‘the tricolour’ in Hindi. The flag has a ratio of 2:3 and can only be made of khadi, a hand-spun cloth.

The flag code of India regulates the usage and display of the flag by the government and the public.

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Unit Trusts – KNOWHOW

Chart

A unit trust – a brief explanation

A unit trust is a type of investment fund that allows you to pool your money with other investors and invest in a variety of assets, such as shares, bonds, property, or cash.

A unit trust is managed by a professional fund manager who decides what to buy and sell according to the fund’s objectives and strategy. You can buy or sell units in a unit trust at any time, depending on the market price of the units. The price of each unit is calculated by dividing the total value of the fund’s assets by the number of units issued.

The more units you own, the more you benefit from the fund’s performance. A regular monthly purchase is the best way to buy as you evenly spread the cost and smooth out and the ‘up’s and ‘downs’ over time.

Some of the advantages of investing in a unit trust

  • You can access a diversified portfolio of assets with a relatively small amount of money.
  • You can benefit from the expertise and research of the fund manager who makes the investment decisions for you.
  • You can choose from a wide range of unit trusts that suit your risk appetite, investment goals, and preferences.

Some of the disadvantages of investing in a unit trust

  • The performance of the unit trust depends on the skill and judgment of the fund manager, who may not always make the best choices.
  • You have to pay fees and charges to the fund manager and other service providers, which can reduce your returns.
  • You may face market risks and volatility, which can affect the value of your units.

A unit trust is a good way to invest in the markets but beware, like any investment, markets go up and they go down! Be aware and be careful.

This is not advice or recommendation.

RESEARCH! RESEARCH! RESEARCH!

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‘When life gives you lemons, make lemonade’.

Lemonade

Elbert Hubbard 1856 –1915

Elbert Hubbard – was an American writer, publisher, artist, and philosopher. He was a travelling salesman.

Hubbard is best known as the founder of the Roycroft artisan community in New York, an influential exponent of the Arts and Crafts movement.

No, nor me – never heard of him, but I really like this quote.

‘When life gives you lemons, make lemonade’.