David Fuller and Eoin Treacy's Comment of the Day
Category - General

    Samsung's take on the world of 2069

    This article from NewAtlas may be of interest to subscribers. Here is a section:

    Despite this, such exercises can be both entertaining and useful for looking at how to meet the challenges of tomorrow, so they're anything but a waste of time. For the Samsung KX50 report, which was released to coincide with the opening of the new Samsung KX exhibition at Coal Drops Yard, London, the company called on President of techUK, Jacqueline de Rojas; Director of Engineering and Education at the Royal Academy of Engineering, Rhys Morgan; food futurologist, Morgaine Gale; digital health futurist, Maneesh Juneja; Specialist Advisor to Innovation Design Engineering at the Royal College of Art, Dale Russel; and leading futurist, Matthew Griffin to pen essays on their take on the world 50 years from today.

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    Killer Superbugs Show No Mercy for Cancer Victims

    This article by Jason Gale for Bloomberg may be of interest to subscribers. Here is a section:

    Doctors in India are sounding the alarm over a threat to cancer patients that’s proving deadlier than tumors: untreatable infections from superbugs impervious to existing medications.

    Patients undergoing chemotherapy in the country are at the front line of the worldwide spread of bacteria that the most potent antibiotics can’t fight. Bloodstream infections caused by these superbugs have become the leading cause of illness and death in leukemia patients, doctors from India’s top-ranked medical college reported last year.

    That frightening reality has forced patients to weigh fighting their deadly malignancies with treatments against the probability of dying sooner from an incurable infection. In India, some 1.7 million receive a cancer diagnosis every year, often leading to chemotherapy that makes them especially vulnerable. Worldwide, at least 700,000 people die annually from drug-resistant infections. That number will balloon to 10 million a year by 2050 and will cost more than $100 trillion in lost economic output without corrective actions, according to a U.K. government study, which estimates that by midcentury more people will die from superbug infections than from cancer and diabetes combined.

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    WeWork Is Said to Target IPO Valuation Far Below Last Round

    This article by Michelle F. Davis, Giles Turner and Gillian Tan for Bloomberg may be of interest to subscribers. Here is a section:

    The outlook for the public debut of WeWork, which has racked up billions of dollars in losses in recent years as the company funds grand ambitions, is cooling after the disappointments of other major IPOs this year such as Lyft Inc. and Uber Technologies Inc. That could put pressure on WeWork, which has a mammoth credit line tied to the success of the IPO, as well as SoftBank Group Corp., which invested at a $47 billion valuation earlier this year.

    “They would probably price this thing at the more conservative end, maybe in the $20 billion range, given that the company is trying to raise more money,” said Phil Haslett, co-founder of EquityZen, a marketplace for private stock sales.

    Potential terms for the share sale are still being discussed, and the eventual valuation could change depending on investor demand, said the people, asking not to be identified because the information is private. A representative for WeWork, whose parent is The We Co., declined to comment.

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    Apple Leads Corporate Bond Bonanza

    This article by Matt Wirz and Nina Trentmann for the Wall Street Journal many of interest to subscribers. Here is a section:

    Apple Inc. on Wednesday joined U.S. companies including Deere & Co. and Walt Disney Co. in a recent sprint to issue new bonds, taking advantage of the steep decline in benchmark interest rates and a surge in investor demand.

    Apple launched its first bond deal since 2017, selling $7 billion of debt. All three companies issued 30-year bonds with yields below 3%, a first for the corporate debt market.

    Twenty-one companies with investment-grade credit ratings issued bonds totaling about $27 billion on Tuesday, said Andrew Karp, head of investment-grade capital markets at Bank of America Corp. “That’s equivalent to a busy week for us—in one day,” he said. About 20 more companies were expected to issue investment-grade bonds Wednesday.

    The issuance boom is one consequence of a rally in debt that has driven down Treasury yields, which fall as bond prices rise, to near-record lows. Spurred by concerns that slowing growth and a mounting trade conflict will end the decadelong global economic expansion, investors have swept up government bonds around the world, pulling yields in many countries into negative territory. Bonds issued by name-brand corporations give investors a relatively safe alternative that still pays more than government bonds.

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    The Unlikely Chinese Cities Where House Prices Rival London

    This article from Bloomberg News may be of interest to subscribers. Here is a section:

     

    London, Seattle, Manchester and, um, Xiamen. Some of the world’s priciest housing markets aren’t where you might think. A four-year property boom in China has elevated a collection of little-known cities and turned them into real estate gold.

    While that’s been great news for speculators, it’s raising concern about whether China’s educated middle-class is quickly being priced out of these so-called second-tier cities, undermining Beijing’s goal of making them home to the millions moving from rural areas. Another risk is increasingly stretched family budgets: The average household debt-to-income ratio in China soared to a record 92% last year from just 30% a decade ago.

    “A property bubble is foaming up in many places in China,” said Chen Gong, the chief researcher at independent strategic think tank Anbound Consulting. “Prices are starting to look
    abnormal when compared to residents’ income.”

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    Stocks Advance as Risks Recede; Greenback Slides

    This article by Randall Jensen and Vildana Hajric for Bloomberg may be of interest to subscribers. Here is a section:

    Stocks in Hong Kong leaped the most since 2018 after embattled leader Carrie Lam said she formally withdrew legislation to allow extraditions to China, the detonator for three months of often-violent protests. In the U.K., the pound surged after Parliament took a crucial first step to block a no-deal Brexit. The euro advanced after purchasing managers indexes for the region beat expectations, while the onshore Chinese yuan gained following another stronger-than-forecast currency fixing.

    “The main news is geopolitical, with less risk in Hong Kong, and Italy and the U.K. Investors are reacting positively to the lower geopolitical risks even though there’s still concerns over trade tensions as well as slower economic growth,” said Kate Warne, an investment strategist at Edward Jones. “Overall, it’s a positive day. It’s about offsetting the worries of yesterday which really focused, I think, on geopolitical risks.”

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    Why Peak gold is Fake News

    This article by Mickey Fulp for Kitco.com may be of interest to subscribers. Here is a section:

    However, the following chart illustrates the severe decline in production, i.e., peak gold, by the six largest gold miners. This particular group of companies has gone steadily downhill from an all-time high of 955 tonnes, or over 40% of world production in 2006, to a multi-decade low of 705 tonnes, or 22.5% of world production in 2017.

    So not only are majors declining in the numbers of ounces (-26% over 12 years), they have also lost a significant share of the world gold mining market (-18%):

    We have shown that the current narrative promulgated for peak gold applies to the major gold miners only and not for the gold mining industry as a whole. That said, the data presented above cover a relatively short time frame of 19 years: the end of a bear market for gold (2000-2002); a long bull market cycle (2003-2012); a relatively short but deep bear market (2013-2015); and a lower, range-bound gold price over the past three years (2016-2018).

    To fully assess the idea of peak gold, I submit we must take a much longer-term view and determine what factors drive mining of the yellow metal.

    According to the USGS, world gold production increased from 386 tonnes in 1900 to 3150 tonnes in 2017. That is an eight times increase and an average gain of 1.8% per year:

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