The financial disaster triggered by the launch of the new iPhone


The most recent devices launched by Apple were greeted by users with a dose of skepticism, especially by those investors who invested in the Asian supplying industry, writes Bloomberg.

Hon Hai Precision Industry, which assembles iPhone and other Apple products, decreased with 10% on the Taipei stock market since Apple launched its new collection of gadgets.

Other suppliers in the region, including Pegaron in Taiwan and Innotek in South Korea, reported a 12% collapse.

The $1.100 billion market in Taiwan is extremely exposed to changes in Apple’s prospects due to the dominance of component manufacturers.

Hon Hai and Taiwan Semiconductor Manufacturing, the company providing the main chips for Apple, account for a quarter of the total Taiex index, while exports account for more than half of Taiwan’s GDP.

“The demand for the new iPhone has been disappointing for markets and for foreign investors, and strong supplier shrinking could continue on the Taiwan stock market”, said Alan Tseng, vice president of Capital Investment Management in Taiwan.

“Apple’s stock market fells down the benchmark market index in Taiwan and could affect it further in the upcoming period.”

Foreign investors withdrew last week a total of 677 million dollars from Taiwan’s capital market, the largest exodus in the past three months. Prior to Apple’s launch, the optimism that the new iPhone model could propel Taiwanese shares has sent the Taiex index at its peak.

The new global superpower: India is set to surpass China’s economy by 2026

India power

India will become the world’s new engine of economic growth, while China and other “Asian tigers” are starting to age quicker.

The number of people over the age of 65 will increase from 365 million people to more than half a billion by 2027 and will represent 60% of the world’s population by 2030, shows the data presented by Deloitte on Monday.

On the other hand, India will become the third economic power in Asia, after China and Japan, with a potential labor force that will grow from 885 million people to 1.08 billion over the next 20 years.

“India will account for more than half of the Asian labor force’s growth potential, and this does not translate only to an increased number of workers. The young labor force will be better educated and more skilled than today’s Indian workers”, says Anis Chakravarty, an economist from Deloitte India.

However, the economic growth in India will not reach its highest peak unless the authorities develop the necessary policy and legislative framework to support and promote this evolution.

Otherwise, this young population will only pose an increased risk of unemployment and social assistance.

At the opposite end, the countries facing the highest population aging risk in the coming decades are China, Hong Kong, Taiwan, South Korea, Singapore, Thailand and New Zealand.

Australia, which is among the most aging populations, has found the solution: it has opened its doors to educated and highly specialized immigrants to solve problems in the labor market.

Japan is also one of the Asian countries with an aging population, which has already prompted labor shortages in more and more areas.

The impact of SOCIAL MEDIA on the FOREX market

social media FOREX

Social networks have become indispensable for the consumer market, Facebook, Twitter or LinkedIn attracting tens or hundreds of millions of members.

This mature technology is also being adopted in the capital market, especially in the retail sector.

While Social Trading can be defined as this method of adopting investment decisions based on social indicators (information from other investors, market trends and expectations), social trading networks turn them into available online information.

The first networks were focused only on the exchange of information between investors, a concept similar to what Facebook or mySpace offers.

Create a profile and post your preferred strategies, your favorite financial markets and also, your experiences.

The next logical step for these networks was to allow investors to automatically copy transactions of those they consider to be profitable.

Participants – traders, speculators or investors, connect their existing trading account to their affiliate broker to follow successful investors, or to attract followers.

There is no direct contact between parties or a capital transfer, everything happens online

Admiral Markets estimates that 5-10% of retail investors from the FOREX market are present on these social trading networks: beginners have the chance to get more profit by collaborating with professionals, while professionals earn management fees and even profits or followers.

If initially focused exclusively on trading on the Forex market, many of the networks have added commodities and stock indices to the portfolio.

London remains the world’s largest financial center, despite the Brexit predictions

London financial center

Although Frankfurt and Paris have struggled to become Europe’s largest financial centers, the most recent surveys show that London will remain the largest financial center in the world, surpassing New York in terms of financial attractiveness, even if Britain leaves the European Union, writes Reuters.

Britain’s departure from the economic bloc has fueled speculation among world’s most influential politicians and economists that London will lose its status as the world’s first financial center, but there is currently no significant evidence to support this prediction.

London was ranked first, followed by New York, Hong Kong and Singapore in the GFCI (global financial centers index) index by Z / Yen.

This index classifies 92 financial centers taking into account factors such as infrastructure and access to highly skilled workforce.

New York ranked 24 points behind the British capital, with a slight difference between the two reaching an unprecedented peak in 2007.

The New York score dropped 24 points last year, with the largest drop in top competitors.

The authors of the study claim this decline was probably generated by the instability surrounding the US trading market.

Since becoming president in January, Donald Trump has withdrawn the United States from the Trans-Pacific Trade Treaty and is pursuing an increasingly isolationist economic policy.

Britain’s most powerful financial lobby group, TheCityUk, draws attention to complacency in the situation and demands clarity and transparency in the EU’s exit agreements, which will be applied after April 2019 when the UK should leave the union.

In June, since the poll was conducted, talks between Brexit Minister David Davis and European Commission correspondent Michel Barnier are taking place in an increasingly arrogant way.

How Vladimir Putin became the world’s most powerful man

Vladimir Putin powerful

Whether it’s pure force, the use of weapons or this super-secret spy strategy, all these have one thing in common: Vladimir Putin.

However, Putin’s biggest power is its political influence: he led Russia with an iron fist, crushing all kinds of political opposition, and was recently accused of involvement in the presidential election in the United States.

But how did Putin ended up from a poor kid born in St. Petersburg to becoming the symbol of modern Russia?

Vladimir Putin was born in 1952, his father being a master in a St. Petersburg factory and his mother a housewife.

During his childhood, Putin was involved in numerous conflicts with his colleagues, a moral feature that paved the way for his passion for judo.

After graduating from Leningrad State University, Putin became a KGB secret agent in 1975.

He spent 16 years there, and in 1990, when he returned to Russia, he began his political career.

He first worked as a civil servant in St. Petersburg City Hall, and his good results drew the attention of the councilors of Boris Iletin. After three years in Moscow, Putin was appointed Prime Minister of Russia in 1999.

A tragic event would define its political trajectory: the attacks in Russia in September 1999, that caused the death of 200, when Putin demonstrated his leadership skills. He accused the Chechen separatists of organizing the attacks and led a real campaign against them.

Therefore, after Ielin’s resignation in 2000, Putin became the new president of Russia.

Vladimir Putin was now in charge of the state, but he still did not have enough power to change things as he wanted to. His first move was to discuss with the richest people in Russia, the oligarchs, and to offer them two options: either to support the Putin regime or to go to jail.

Putin’s strategy has always been simple: restoring global influence and maintaining the former Soviet Union in its sphere of influence.

Vladimir Putin is in the last year of his mandate, but there are chances that he will run again and remain head of state until 2024.