‘Doctor Doom’ Marc Faber is down in Melbourne to discuss where the world is heading. Is a stock market crash on the cards? Or is it something else? ‘Where is the World Going?’ was the theme of Dr Faber’s presentation today. And around the world we went. Dr Faber had so much to say, we can’t fit everything in. But Dr Faber is quite well versed in the Chinese economy...
The flourishing Asian economy will be a major source of growth and opportunity for Australian companies and investors in the years ahead.
But there’s also the danger of managers and investors getting lured into markets they don’t understand. You can find out the companies and regions poised to profit and those that aren’t from our investment editors. They get the facts you need to know to make an informed decision and to make sure your money is in the right place — at the right time.
A trade surplus is way down on the list. Far more important is the control of revolutionary technologies. It’s why China has been rapidly increasing their patent applications. It’s also why China has created 17 technological innovation zones. To become the world’s future super power, China knows the most important ammunition will be technology.
Last month, the US imposed tariffs on steel (25%) and aluminium (10%). They temporarily suspended tariffs for the European Union, Argentina, Australia, Brazil, Canada, Mexico and South Korea. But not for China. Over the weekend, China retaliated…with more tariffs. What does this mean for the global economy?
The Dow Jones Industrial Average dropped a total of 500 points the first trading day of April — closing at 23,644.52 points. There are a few reasons driving the market lower, including fears of a trade war and of regulation in the tech industry.
A2 Milk Company Limited [ASX:A2M] share price has dropped by 7.8% today. At the time of writing shares are trading at $12.02, after closing yesterday at $13.04.
China is also looking to promote the Yuan around the world to become more prominent in international trade. This is a very big deal. Especially as it is coming at a time when there are increasing tensions between the US and China on trade.
On all the trade war talk, US stock indexes fell heavily last Thursday and Friday. The major stock market averages suffered their worst weekly losses in two years. Although, with all the noise about a trade war last week, bullish reports on the US economy, seemed to get lost.
The US is the world’s largest steel importer. But, as reported by The Australian Financial Review, aluminium US exports make up 2.1% of China’s production. The truth is that the new tariffs won’t affect China much…yet.
They’re calling it the ‘One Belt, One Road’ initiative. It will cover 65 countries, touching more than 4.4 billion people. It’s China’s answer to opening up trade with the rest of the world. This project is a massive opportunity for Aussie businesses. And that means it could also be a massive opportunity for you.
It’s still not clear if China will start selling US bonds. In fact, it could be that China can’t help but buy more US bonds. So what can you do if the second largest US bond holder goes haywire? Reduce losses as much as possible. It’s probably one of, if not the most important rules when investing.
To fund its ageing population, Japan is again seeking to innovate. But it is doing it in a different way. Japan is not just aiming to make and sell more goods. It is also looking at another way to generate income from its engineering skills. And it all has to do with intellectual property (IP).
The consumer confidence done by an independent (and non-Chinese) company with a good reputation to uphold, says consumer confidence is on the rise in China. And when consumers are happy, they spend money. And when 1 billion Chinese spend money, the world economy benefits too.
There’s no question that spotting growth in emerging countries — economies in need of our resources — at the right time is a huge opportunity for Australian investors. India is now the world’s fastest growing economy, and will likely be for many decades to come. It’s growing at a brisk 7% per annum - Good news for them. And good news for you.
Artificial intelligence is by no means a new concept. The term was first coined nearly 60 years ago. But it continues to give the impression that it’s something which will happen in the future. China wants to be at the forefront of this rapid growth now, and it’s already made a step in the right direction.
President Xi has called it ‘the project of the century.’ The initiative is motivated by a desire to boost economic growth in both China and nearby countries. This will provide a growing market for trade. It’s the largest overseas investment plan ever launched by a single country. According to ratings agency Fitch, US$900 billion of projects are planned or under construction.