Contrarian View on the Trade War between China and US

A contrarian view has emerged in Beijing after the American polls and pundit dismissed the notion that China would dump its vast holdings of US Treasury debt as retaliation against US tariffs. The contrarian views state that the government may form a weapon of last resort by using the securities.

Five percent of the total US national debt amounts to China’s US$1.12 trillion holdings account. This means that any material damage on the US economy coming from a bond sale would be limited. Also, even if it leads to market volatility, China’s remaining holdings would be hurt, which could lead to the Chinese viewing it as a risky move.

According to Mather Hornbarch, an analyst at Morgan Stanley, while they think China continues to sell Treasuries as it has done for the most of last year, they don’t believe that the pace at which she is selling will increase a direct response measure for tariffs. Hornbarch added that they think the speed at which China sells Treasuries will continue to track the pace at which they see capital inflows.

According to some analysts and reports distributed on China’s social media; with Beijing vowing to fight and the US preparing to place 25 percent tariff on further US$300 billion of Chinese imports, China may have no choice but to sell the US Treasury holdings. This would, however, devalue US bonds leading to yields rising sharply. China’s currency would be strengthened against the US dollar if they converted the dollar proceeds from their sales back to yuan.

Another line of thought is that since the trade war could take away the US as a viable market for Chinese exports, a strengthening Yuan against the dollar; which could turn Chinese goods to be more expensive for American buyers may be seen as a welcomed outcome by Chinese policymakers.

Reference

https://www.scmp.com/economy/china-economy/article/3011551/could-china-dump-its-us-treasuries-fight-trade-war-contrarian

 

 

Scamming Activity Leading To the Loss of £9,200

Michael Johnson, an experienced accountant together with his business partner, had in a long time struggled to open a new account with Metro Bank despite being a customer. However, Michael’s relief came after receiving a call apologizing for the delay and promising to give him a new account there and then.

The caller took Michael through Metro standard security questions and he received an authorization code texted from Metro to allow the transfer of his payees from his previous account to the new one. He later received another call from Metro Bank telling him that he had been scammed out of £9,200.

In 2018, nearly 85,000 banking customers lost up to £354m to fraudsters after being tricked into giving their bank details. The scam named authorized push-payment fraud has customers deceived into thinking they are in communication with their bank to disclose delicate security information or with a genuine trader to whom they owe money.

The case of Johnson is remarkable due to its sophistication. The caller managed to mirror Metro Bank’s security protocol, terminologies and customer service styles and was already equipped with personal information about him and his company. According to Johnson, he did not suspect that he wasn’t talking to someone from Metro Bank despite his father being scammed a few weeks earlier.

The scam started with a genuine tweet from the bank informing customers to share their experience of its customer service in an online survey. His business partner tweeted back, mentioning their difficulties in setting up a new account. The fraudsters got to her tweet, Googled her details and called her posing as Metro Bank customer service operative called Neil.

She was informed that the call was in response to her tweet and that they wanted to rectify their poor service by getting them a new business account immediately. As part of due-diligence checks, she revealed the business details and named Johnson as the co-director.

Reference

https://www.theguardian.com/money/2019/may/26/metro-bank-fraud-phishing-scam-security

 

Switching To Electric Cars and Its Advantages in Norway

According to Dagfinn Hiehe, switching to electric car use was a satisfying choice to make. He says that he can drive in the bus lane, which saves him thirty minutes on every trip to work. According to Dagfinn, he does not need to queue; he can by-pass the queue. He is one of the increasing numbers of Norwegians who have turned to electric cars, and they are enjoying it.

The Norwegian government has offered its citizens a chance to drive in the bus lanes in exchange of switching to electric cars and dumping their diesel and petrol ones. Like other developed cities, Oslo’s roads are quite overcrowded; hence saving time on the commute is much welcomed.

The other benefit in of switching to electric is the discount on road tolls which you are primarily exempted from if you drive an electric vehicle. Under normal circumstances, Norwegians finish work at 4 pm, so a rush hour is often in full swing at that time. At the center Oslo where Dagfinnis, there are seven charging points at the time when he was being interviewed, they were all full.

Charging the car takes twenty minutes and is way better than charging at home because you will get a faster charge. While charging, you can also multitask, e.g., go for your grocery shopping. In the same station, another customer Ida who drives a BMW i3, was interviewed. According to Ida, her last car was a BMW 3 series, and when she compared the much she spends on her petrol car, the electric one was much cheaper.

The sales of electric cars have reached 58.9 percent in March in Norway. In the UK, 0.9 percent of the new vehicles sold were electric. According to Christina Bu from the Norwegian Electric Vehicle Association, in addition to the incentive, they have a system where they tax petrol and diesel cars that pollute.

Reference

https://www.bbc.com/news/business-48400271

 

Little Things That Make You Become More Successful

Success never comes easy most of the times. However, there are a few things that one can do every day to achieve professional goals and become successful. This has been proven by the world’s most renowned leaders like Oprah Winfrey and Elon Musk to CEOs at Facebook and Google. They all see success as a work in progress.

According to some of these leaders, one of the things you need to accomplish is reading a book that is not directly related to your career. Reading is often the simplest way of experiencing life from a different perspective and helps you develop empathy and later become an excellent leader.

For Elon Musk who includes works of science fiction and biographies in his read, he said that he was raised by books then by parents. According to Musk expanding your knowledge beyond your expertise is a sign that you are leveling up. Developing the courage to venture outside your comfort zone shows that you are growing.

The other step is making exercise your good friend. Tome Corley, an author, found that those who tend exercising aerobically tend to have competitive advantages over those who do not. The benefits he wrote in his book include a higher Intelligence quotient (IQ), Confidence, willpower, and up to 20 percent more energy.

Also, successful people know the importance of giving back, especially to those in need. The myth that a lone hero made it because he pulled himself up is simply a myth. Back in 2010, Bill and Melinda Gates and Warren Buffet began a Giving Pledge. Its purpose was a commitment made by wealthy individuals and families to give more than half of their fortune to causes like global health and poverty alleviation. When you are too busy to return a favor or give back, it shows you are too busy to succeed.

Reference

https://www.cnbc.com/2019/03/06/bill-gates-warren-buffett-google-ceos-and-billionaires-do-these-6-things-every-day-to-be-successful.html

 

Are Lenders Shying Away From Saudi Arabia?

In a bid to do business in Saudi Arabia, numerous banks have set foot in the country as the country gears itself to stop overreliance on oil. However according to bank sources who spoke to Reuter’s news agency, the country’s Public Investment Fund (PIF), is attracting tepid interest in its recent push for multi-billion debt sale. This trend indicates that Saudi Arabia might have fallen out of grace with the said lenders.

Equally, relationship between Riyadh and Western allies has suffered a huge blow since the murder of journalist Jamal Khashoggi. However, the Saudi government has raised tens of billions of dollars since 2016. With $60 billion coming from global bonds and $16 billion from international loans. Not to mention state entities that are issuing debts in a bid to raise money.

Banks flocked the country taking up low-earning sovereign bonds hoping for more lucrative work. However, unforeseen events such as Aramco’s postponement of stock listing has not auger well with most lenders.

“Banks had been made a lot of promise, on the equity side mostly, and what is happening is just sovereign borrowing,” said the source. Sources told Reuters that even though banks took part in the PIF term loan, they are skeptical about getting involved in a billion-dollar bridge loan if it has no commercial terms.

Sources said that last year’s PIF loan paid 75 basis point over the London InterBank Offered Rate. This year’s PIF loan is expected to offer lower margins. One source said that he expect it to be around 30 basis points higher than London InterBank Offered Rate.

Source: https://www.aljazeera.com/news/2019/05/lenders-losing-appetite-saudi-debt-190521172113797.html

 

 

Ford On The Verge Of Cutting 7,000 Jobs Including 500 In The UK

Ford, one of the largest US carmaker for decades announced it would cut at least 7,000 jobs by the end of August 2019. And about 550 persons will be lied down in the UK. This is in a bid to reduce cost in its European and USA markets. In fact, it plans to cut 10% of its global workforce.

These dramatic cuts are expected to save the USA carmaker a whopping $600 million annually helping it achieve a better profit margins amidst weak global demand and the fact that the electric vehicle craze is here to stay and it will only increase.

Although Ford did not gve the exact number of jobs that will be lost in the UK, it is estimated that more than 500 employees that are found in Halewood, Dagenham and Bridgend will lose their jobs. Chief executive, Jim Hackett said through a memo on Monday that the restructuring would start on Tuesday and end by May 24.

Ford hinted out about job cuts in Europe in January but never gave further details. In essence, it is shutting-down European factories in a bid to improve profit margins and also do away with loss-making car lines.

“To succeed in this competitive industry, and position Ford to win in a fast-changing future, we must reduce bureaucracy, empower managers, speed decision-making and focus on most valuable work, and cut costs,” the memo read.

Of all European countries, Germany will bear the biggest burden since more than 5,000 jobs are expected to be lost when one factors in temporary staff.

Source: https://www.theguardian.com/business/2019/may/20/ford-motor-company-cut-7000-jobs-500-uk

 

 

 

 

U.S. Politicians Warning Silicon Valley About Doing Business With China

American lawmakers are not giving Silicon Valley peace of mind. In fact, the U.S. intelligence community is warning Silicon Valley about doing business with Chinese companies.

Sen. Mark Warner who is the Vice Chairman of the State Intelligence Committee said that he together with other lawmakers, held classified briefings with American businesses and intelligence officials to warn them about the dangers China poses to the United States.

The briefings happened last fall as the United States continues to pile pressure on Chinese tech companies amid suspicion that they are spying on American citizens and stealing intellectual property.

“I’m a former venture capitalist. Until fairly recently, my views were similar to a lot of folks coming from the business world … but a few years and many, many classified briefings later, my views have changed, as China has.” He said in an interview with NBC News.

The push to break U.S. and China business ties points to a future divided by technological stalemate and a geopolitical map divided between countries that rely on technology made in China and those that rely on U.S. technology.

The briefings drew prolific figures in U.S. intelligence docket such as National Counterintelligence Director Bill Evanina and National Intelligence Director Dan Coats.  Also present were senators such as John Cornyn (Texas), Richard Burr (North Carolina) and more.

The key reason for these briefings were to present businesses that only see the economic benefits, with security loopholes that china can take advantage of. Recently, the Trump administration banned the use of Huawei in the U.S. market. Critics say that this is a return of the cold war between China and USA.

Source: https://www.nbcnews.com/tech/security/u-s-politicians-warn-silicon-valley-about-doing-business-china-n1008471

 

Want A Business Idea In This Digital Era? Here Is How

Every entrepreneur has one thing in mind when starting a business – make profit and for the start up to be the next big thing. Well, even the likes of Mark Zuckerburg and Jeff Bezos were once in the same predicament and fast forward to 2019, their companies are the biggest tech giants.

Side note, this kind of success does not happen overnight, it takes years of organization, research, planning and lots of advice from “people who have made it.” So how do you go from a novice entrepreneur to a business mogul? Let’s find out!

This is where the magic starts

The main benefit of technology on this digital era is the way it has simplified tasks. And, the internet is at the forefront of all this. It helps people from USA or Africa meet their needs remotely. Equally, it can be a source of great inspiration. In that, you can read about start up stories and how they made it. Many business moguls such as Jack Ma share crucial tactical advice that startups can use for idea generation.

Identify problems

Take Garrett Camp and Travis Kalanick, they saw a need of cheap taxis to take you to any destination without a fuss and Uber was born. Brainstorm on problems that you can solve digitally.

Focus on trends on your niche

As a potential business owner, you have already identified your niche. It’s time to look at the trends in that area. Take time to learn the ins and outs of the industry, soon the passion will propel you to starting the business at a high note.

Attend seminars and build networks

The good thing about networking is that you meet like-minded persons with whom you can share ideas. And in between talks, you can hear about their pain points. Likewise, you might get a potential business partner.

Source: https://www.entrepreneur.com/article/333959

 

 

 

Why do we Complicate Businesses?

Most small business owner survives through their businesses rather than thrive in them. In fact, most use the business to support their decent lifestyle. Well, while this is acceptable in the eyes of society, it is suicidal to your business.

So how do you create wealth while running a successful business?

Well, first you need to achieve business stability. After this, build an able leadership team that can take the business to the next level. From there, defining a pathway for success becomes a piece of cake and anybody who joins the business can buy to the idea.

Unfortunately, most businesses stagnate or crumble in the stabilizing stage or other progressive stages. You should always remember that scaling your business to the next level does not come out of sheer luck, it is a science that ought to be at your fingertips.

Not following this science principle causes a business to become complicated – as we all think it is. Everything that helps the business grow is a science, from targeting customers, identifying the right marketing strategy, building an able marketing team, attracting the right talent or developing a high-performance culture.

Well, waking up and starting a business is a recipe for failure. And this is what most entrepreneurs do and expect exponential success … it doesn’t happen this way folks! Learn, understand and implement the science of business.

Think it’s a fuss? Well, look at the most successful and scalable businesses, they all followed the science of business. They shamelessly utilized these scientific tools. If your business solely relies on your intelligence, then your business will remain small. Its time you utilized these scientific tools.

Source: https://www.entrepreneur.com/article/331971

 

Amazon Releases 50 Amazing New Tools for Small Business Sellers

Small and medium-sized business sell more than half of all units on the platform. As such it is prudent for Amazon to support their growth. From early this year, the company has released 50 tools to help small and medium businesses on the platform.

Amazon is a vast platform that can ultimately overwhelm small businesses given its numerous features. To mitigate this, Amazon has released tools that simplify the user interface and also give small sellers valuable insights about the site.

In fact, if used properly, SMB is poised to conquer both local and international markets. According to Ian Simpson, VP Selling Partner Services at Amazon, they created the tools based on seller feedback. “From updates to brand analytics to a new global selling workflow, businesses have access to infrastructure, technology, and insights to help them reach more customers and grow their businesses online,” he added.

Meanwhile, there are more than one million small businesses on Amazon creating more than 900, 000 jobs. The exponential growth is fueled by SMBs generating thousands if not millions of dollars in annual sales.

In fact, in 2018, small businesses worth more than $1 million grew by 20 percent.

Amazon spends billions on building infrastructure that enables SMBs to sell on the platform. As such, some of the tools created provide much-needed solutions that these businesses face.

A key tool is the Brand Analytics which will provide businesses with relevant data such as search terms and comparable products. Other stellar tools enable the business to expand globally, waiver monthly FBA storage and removal fees among others.

Source: https://smallbiztrends.com/2019/04/amazon-seller-tools-small-business.html