7 Common Money Traps Even Smart People Fall Into

Important Aspect - Cash Flow Management

Handling cash flow is very important aspect since all work hard for money and tends to make the most of our income. In order to avoid spending mistakes and help to stretch the cash for a longer time the following tips could be helpful –

1. Buying things on sale

Buying things on sale tends to be a mistake and can actually be a huge money waster. Whatever the price or bargain may be, if one purchases something which would not be used, it would be like throwing away your money. Before indulging in the sale purchase, one need to ask oneself whether the said product would had been purchased if not put up for sale and will be used after purchase. One should indulge in sensible
purchase and not go on a shopping spree for anything on sale.

2. Buying stupid products

Sometimes one tends to indulge in purchasing useless things and then repent for having done so. Prior to purchasing any of these unwanted commodities, one could hold onto to purchases for a later date if essential. It is best to limit them by having certain standards for the purchases especially big purchases.

3. Spending money on problems one cannot solve with money

Stop to think if by going shopping or indulging in some purchases, would help in resolving certain issues in life. There could be other options which could be more beneficial than in shopping and wasting money.

4. Refraining from spending when one has the opportunity

Your hard earned money needs to be spent on what could add great value to your life. It would be pointless if one cannot spend the money earned on important things in life and miss out on opportunities that come your way.

5. Not maximizing rewards and points 

Reward credit cards are of various shapes and sizes enabling the user to collect points on purchases like merchandise, gift cards, airline miles or cash back which could be utilised at the appropriate time when needed. One could opt for a card which offers points while shopping for basic like the grocery which when accumulated could be used for gas fuel or if travelling, an airline miles reward card which could be beneficial in the long run and take advantage of the points or cash back.

6. Not setting up automatic savings outside your 401(k) 

One should discipline oneself in setting up an automatic investment plan to come up after the pay check comes to your bank account every month. We often tend to pay the bills and other non-essential things leaving our savings till the last, if there is anything left after all. This needs to be avoided if keen on a good future.

As the saying goes -Money Saved is Money Earned. You could check with an investment company to set it up which would be very beneficial over a period of time. Automate your savings and investing inside as well as outside of your 401 (k) and set a direct deposit from pay check to bank account and monthly automatic transfer to your investment account.

7. Not spending enough

Sometimes we tend to compromise on our purchases by not buying the essentials when the need arises. We look out for other options which at times could be dissatisfying on purchasing. If one can afford it, go in for the best quality which will satisfy your requirements even if you have to delay the purchase.

Three Ways To Make Your Small Business More Profitable

Small business owners typically find their minds dominated by an important question: How can I make my company more profitable? If you're looking for answers to this question, you'll be happy to note that there are many strategies you can utilize to ensure that your small business becomes a money-making machine. Here are three strategies to try:

1. Enhance Your Meetings.

Meetings are the medium through which you and your business partners strategize regarding how you're going to move the company forward. When you optimize and expedite your meetings to facilitate this purpose, you can get more done in less time. In understanding that time is money, you should recognize the role that meeting enhancement can play in generating more revenue for your company. Businesses like Meeting Metrics specialize in providing business owners with the techniques and tools necessary to keep their companies moving forward and making money. Learn more about all of the business-building services that Meeting Metrics has to offer when you click here.

2. Market Online.

Online marketing has become one of the most expedient and effective advertising methodologies available to small business owners. These days, the phrase "growth hacking" has come to define the process in which small business owners use online marketing strategies to build their audience, convert prospective customers, and generate brand loyalty. One of the great things about growth hacking strategies is that they are cost-effective, meaning that using them can help you generate wealth without necessitating that you invest a lot in the marketing process. Some of the more prevalent growth hacking strategies available to you include:

• website analytics 
• search engine optimization 
• A/B testing 
• content marketing

3. Network.

The key to generating more wealth for your small business is constantly building your network of loyal clients and business partners. This process is realized through consistent, effective networking. If you are not already in the habit of networking in a very systematic, strategic way, you need to put this objective at the very top of your priority list. As you begin, remember that networking can transpire in both formal and informal settings. Formal modes of networking include attending lectures, conferences, and other events related to your field. Informal modes of networking include things such as attending baby showers, football games, and other social events where you're likely to meet new clients.

Conclusion 

If your primary goal is to ensure that your small business becomes as profitable as possible, implementing the strategies above can help. By optimizing your meetings, investing in growth hacking methodologies, and networking regularly, you'll likely find that your small business starts obtaining absolutely amazing conversion rates!

Taiwan Economy Shrinks for First Time since 2009 on Exports

Economy of Taiwan Weakened - Global Financial Crisis

The economy of Taiwan weakened on a yearly basis for the first time since the global financial crisis, as a fall in exports and an inactive global recovery pulled on consumption. According to preliminary data provided by the statistic bureau recently, the product of gross domestic fell by 1.01% during the three months through September from a year earlier.

This compares with 0.52% growth initially reported in the earlier quarter with the 0.5% drop expected by the median estimate in a Bloomberg survey of economists. Taiwan’s exports seem to be sliding as the economic growth in the best location of China has slowed more to a six year low.

This had begun to curb domestic consumption last quarter that has marked the biggest slide for local shares since 2011 in the midst of Yuan’s stock devaluation in August. Economists are optimistic that the growth is likely to return to positive territory this quarter as U.S and Chinese demand tends to recover, restraining room for another rate cut in December this year.

An economist at DBS Group Holdings Ltd, in Singapore, Ma Tieying commented that `demand was poor in China and emerging markets in the third quarter, together with volatility in global markets accompanied with Yuan devaluation affected the stock performance and confidence of the consumer.

Government Unveiled Consumption Incentive Package

He added that the economy needs to bottom out in the fourth quarterand the weakening in export orders which narrowed in September, should enhance manufacturing. Recently the government had unveiled a NT$4.08 billion consumption incentive package after the announcement plans in July, to improve the infrastructure investment and credit.

Wai Ho Leong, economist of Barclays Plc. had mentioned in a note that, the new incentive would possibly have a little effect with regards to its size. The domestic consumption which had extended gradually during the past two years amidst fluctuations in exports had grown by 0.89% last quarter as against 2.85% in the previous year.

Benchmark rate was cut by central bank for the first time since 2009 in September, quoting high rates and a negative output gap. Besides, considering the next decision in December is that, if the Federal Reserve tends to raise the rates that month that would also increase Taiwan’s risk of outflows if it agrees to ease the policy.

Poor Economic Outlook – Markets Affected

Leong stated that the growth seems to have bottomed in the third quarter and would extend discreetly in the fourth on the back of a late year pickup in external demand. He also quoted steadier stocks and spending earlier to January’s presidential elections.

He added that in the absence of a clear systemic shock and the Fed considering a December rate hike, they are expecting the central bank to keep its benchmark interest rate unchanged at its December meeting. An economist at Capital Securities Corp in Taipei, Hsu Kuo,said that in the midst of poor economic outlook

Taiwan’s intermediary exports to China as well as other emerging markets are affected. US intended to raise rate but had not done so, which indicates recovery in the world’s largest consumer nation is still weak according to Bloomberg.

How to Create a Scalable Payments System

Multitude of Companies – Attempts on Scalable Payment Systems

A whole multitude of companies in Fintech have been making attempts in developing scalable payment systems. As per EY, one of the largest markets in UK Fintech is payment at around £8bn per year. In order to make money new payment provider should measure quickly for the purpose of economics to operate.

This would need proposition which would be knowingly convincing for consumers as well as merchants together with the different other players in the value chain. Currently though payment tends to work, it is not perfect by any means but all the same it works.

It is essential to add value to a payment system in order to make a successful business from it. It has been observed that by just making payment is great but not good enough. Should the option be given of paying with your phone through contactless instead of a credit card, at a restaurant, the difference would not be big. One would have to go through the procedure of asking for the check, viewing it and instead of paying with the credit card it could be paid with the phone. Hence the motivation of utilising the phone is not strong.

Technology Incorporated Into Restaurant Apps

This technology for instance has been incorporated into restaurant apps, permitting consumers to pay for the total bill or split the bill with others through Apple Pay, PayPal or any registered card on a MyCheck account, without the need of staff. Moreover, it also permits sophisticated incentive as well as loyalty programs created to personalize the dining experience for the consumers.

For instance, when a customer tends to visit a restaurant, they would need to view the menu which can be done through the restaurant’s app, powered by MyCheck. If the customer prefers to redeem his coupons or offers or even participate with loyalty programs, he could do the same through the app without the need of involving paper vouchers or loyalty cards where the accumulation and redemptions seems to be automatic.

When the consumer wants to pay, the need of asking for the check does not arise, since the MyCheck platform has been incorporated so that the consumer can pay as well as split the bill utilising their smartphone.

Payment Apps do not Generate Revenue from Consumers

With plenty of competition around, individuals tend to comprehend that it is not just about food but also about the experience. Making an effort of leveraging the potential of the smartphone, one could develop an engaged though discreet association with the guests. With regards to monetizing an app, the same is based on what the app is attempting to achieve.

Several of the payment apps do not generate revenue from their consumers, the merchant tend to pay them. The effect is that since there seems to be many platforms on the market, one would have to prove the value that would be added to a business for them to get involved. The amazing thing regarding MyCheck is that it is partnered with chains that have been already functioning where their success would be success for all.

The challenge lies in how to be loyal and how the visits are repeated while at the same time offer better customer experience. According to data, it has been observed that once a user tends to utilise the app more than twice they get hooked to it. A bit of convincing is needed to let them use it twice and thereafter they tend to get used to the experience and like it.

8 Bad Money Habits and How to Break Them

Handling Finances – Money Habits

Managing your funds is often related to the habit one may cultivate and money habits could decide how a person handles their finances. The following could help in comprehending some of the money habits which one may not be aware of, but which would be draining away your finances

1. Spending more than the earnings

This is could be the most awful habit which could hurt the well-being of your finances when one tends to continuously spend beyond their means and when the expenses exceeds the income coming in, towards the end of the month one realises that they have overspent. The remedy is that one should monitor the spending habits and keep a tab on overspending.

This could be done by checking on the expenses and segregating them into `need base’ and `want base’ opting on what is essential and refraining from unwanted purchases. A budget could be prepared to keep the spending activity under control. If the need base on essentials tend to make you spend more than the earnings, one would need to focus on increasing their income either through loans or credit card debt. However this too should be taken into consideration with regards to repayment.

2. Postponing financial decisions for tomorrow which may never come

Often we tend to put off investment plans for a later date which never turns up or it tends to get pushed off every month since no savings have been done. And postponing financial decisions is worse than making bad choices. Since the earnings saved tend to generate additional income by way of interest earned, the sooner the investment is made, better are the chances of increasing your savings. The right opportunity of investing should be done when one tends to have the funds. Delaying in investments could lower your ultimate corpus.

3. Falling into debts for wants instead of needs

We live in a competitive world and very often we tend to get carried away with lifestyle based purchases and indulge in purchases which may not be needed, leading us into unnecessary debt. If the much needed purchases tend to constantly run you into debts, it is a habit which needs to be kept under control to save from future distress. Debt is for the vital and planned purchases which could be indulging in manageable debt for the purchase of a home or a child’s education though it would not be appropriate to fund for luxury items.

4.Gambling instead of investing

Several people indulge in experimenting in the stock market without really comprehending its concept which could be dangerous and as the saying goes `little knowledge could be dangerous’, this could be applied here. Often a person may get a tip on some particular stock which may be a good bet or someone may inform that Options are a good way of making money.

If one intends putting saving into investments without any knowledge about it or the risk involved and just speculating, it could be one form of gambling and not investing. Several people have been indulging in this unknowledgeable move and have repented in doing so. The best remedy is to place your investments on your goals. Ensure to refrain from investment option which may seem too good to be true. There are no shortcuts to investment and prudent disciplined investment tends to work in growing wealth.

5. Refraining from saving regularly

Most of the people do not save regularly which is common while indulging in spend first and save later. Organising your expenses before saving makes your saving an unreliable matter. Hence adopt a habit on how much one can save regularly keeping aside the saving as soon as the income comes in. This would be helpful in saving habit instead of spending.

6. Being risk averse

One may consider not taking risks could be good and would make you cautious of bad investments. But if risk aversion prevents you from investing in some risky though essential investments it could be nothing a bad habit. Risk aversion seems natural though it should not hold anyone back. Not taking risk is not like understanding risk and several investors understand risk instead of avoiding it. If one intends to beat inflation and increase wealth, then risk taking seems to be essential. Here again what matters is the risk profile of investment goals instead of your own risk profile wherein one could invest in safe options such as Bank FD though could expect lower than inflation returns.

7. Paying dues after the due date

If one tends to constantly make late payments against credit card bills or utility bill you would be incurring additional expenses by way of interest which could probably lead you to being broke paying up the hefty interest rates charged against late payment. Payment of bills needs to be made on time to avoid late payment charges.

8. Indulging in habits which are financially taxing

Smoking, dining out too often or drinking spree could lead to a substantial financial burden and though these habits could be considered as small expenses but over a period of time could add up to weighty amounts. This needs to be stopped to avoid further tension on health and money.

Why US Banks soon will be singing the Blues

Analysts Apprehensive – Quarterly Profits Reports

Estimates seem to be moving in the wrong direction with Wall Street banks about to report on how much money they have been making. The industry had jointly reported $43 billion in profits, coming off a quarter and analysts are expecting a rising rate environment with increased demand which would tend to keep things moving for $15.1 trillion sector.

But with declining expectations for a rate hike in 2015 together with other factors, it tends to make the analysts apprehensive with regards to how the quarterly profit reports would turn out. For the Big Four coming up, JPMorgan Chase would get things started with the others following during the week, like Bank of America, Wells Fargo, Citigroup, Goldman Sachs and PNC. S&P 500 financials, as a sector is expected to indicate a 3.8% annual growth in profits as per S&P Capital IQ.

This seems to be an improvement than the 5.1% decline predicted for the total index and is a big disillusionment from early forecasts. The revenue is said to grow by 4.4%. As per July, analysts had been predicting 9.9% growth which a year back the expectations seemed to be a showy 27%.

Bank Earning – Increase – Based on Performance of Bank Stocks

Hence the results showed better than expected and are likely to remain below the earlier high hopes for financials which were expected to be the best performing sector of 2015. Bank earnings are increasing based on the performance of bank stocks recently and one would think that the earning could be a disappointment. However, it is not the same for all bank stocks.

Two great concerns for bank earnings are the weak trading and low interest rates. Trading profits being low seems to be correct. Trades in government bonds and the equity trading could be alright in the quarter though activity in the range of other financial areas could have been weak to awful.

In the case of awful, one could point to agency, asset backed bond as well as commodity trading. With regards to the weak side, one could view at corporates, currencies and municipals.

Substantial Revision – Individual Companies

Substantial revision has been seen in individual companies recently. According to FactSet, analysts have reduced MetLife estimates from 88% a share to 77 cents, while Goldman Sachs from $3.46 to $3.20, Morgan Stanley from 68 cents to 63 cents. In the S&P 500’s financial sector, expectations on earnings have been condensed for 53 of the 88 companies.

The weakness tends to come since loan growth has been steady due to strong climate in the commercial real estate. According to Federal Reserve data, in the third quarter, the sector increased by 9.7%, the greatest of the year after rising 6.7% in 2014.

Moreover, investment banking has been fairly strong all through the year and though the global revenue has been down by 10% year after year, it has been in level at $28 billion in the U.S. This was due to a record of $9.7 billion haul by way of mergers and acquisition revenue, as per Dealogic.

Banks stocks seem to have failed in 2015 with KBW NASDAQ Bank Index off 4.8% a year to date as against a 2.2% less in the S&P 500. In October, the index was up by 1.3% trailing behind the broader market’s gain of almost 5%.

Storm Clouds Gather Over Global Economy as World Struggles to Shake Off Crisis

IMF Framed Forecast – 2015, UK Growth Among Downgrades

According to the International Monetary Fund, Britain is among some of the shining lights in the global economy and as the world views, the slowest period of growth since the financial crisis. The IMF framed up its forecast in 2015, for UK growth among downgrades `across the board’ for emerging and advanced economies.

It stated that China’s slowdown, dropping commodity prices together with an expected increase in the interest rate in US would tend to weigh on output. It is now expected that the world economy would expand by 3.1% in 2015 from a forecast of 3.3% in July. Since 2009, this would represent the slowest expansion when the global growth came to a halt.

According to the IMF’s chief economist, Maurice Obstfeld, who stated that `six years after the world economy came from its broadest and deepest post-war recession, the holy grail of robust as well as synchronised global expansion remains elusive.


Inspite of differences in country specific outlooks, the new forecasts tend to mark down expected near-term growth marginally though nearly across the board. Besides, downside risks to the world economy seems more pronounced than it was a few months back’

Risk of Recession over Next Year

The Fund had also cautioned that the risk of recession in the US, Eurozone as well as Japan over the next year seemed to have increased in the past six months since emerging markets face a fifth year of slow growth.

The year of weak demand as well as anaemic productivity development meant the probability of damage to the development on medium term was a great concern, warns IMF. Further drop in global demand would be leading to near stagnation in advanced economies should emerging markets tend to continue faltering, it added.

The UK economy is anticipated to grow by 2.5% this year, slightly up on the IMF’s forecast of July by 2.4% and its expectation for 2016 growth remained unchanged at 2.2%. IMF had stated in its latest World Economic Outlook that `in the United Kingdom constant steady growth is anticipated which is supported by lower oil prices as well as constant recovery in wage growth’.

Fund Cautions – Countries Need to Be Prepared for Higher Interest Rate

The outlook also portrayed US growth for 2015 had been higher than expected three months back when Italy envisaged upgrades for 2015 as well as 2016. The biggest economy of the world is expected to lead growth in the G7 this year but the UK and US economies have shown indications of slowing down, recently. The latest health-check of IMF portrays that it anticipates the UK government to balance its books by 2020.

Mr Obstfeld had stated that the UK and the US seemed `not totally immune’ to a probable slowdown in China but were less open than countries with closer trade connections. As per the Bank of England, should China’s grown be 3% lower over the next three years than it present forecast, it would knock 0.1% off the growth of UK.

IMF has stated that the risk of a recession would now be higher in the Latin America 5 – Brazil, Chile, Colombia, Mexico and Peru when compared to the rest of the world group. The Fund has informed that countries need to be prepared for higher interest rates in the US which is expected by the turn of this year. It also added that the Bank of England would probably raise rates by 2016.

The Truth about China's Dwindling War Chest

China – The World’s Largest Creditor

China is considered to be the world’s largest creditor and the enormous money reserves of Beijing presently stands at a $3.6 trillion, which is still the leading owner foreign holder of US government debt. For over two decades, China, the world’s second largest economy had developed a war chest of foreign currency assets as a shield against the global winds.

However, on August 11, the decision taken to tweak its exchange rate regime to engineer the biggest single devaluation of the renminbi in 21 years has put forth the query of reserve depletion in severe aid. After deserting its peg with the US dollar for anachieveddrift, those in authority have been compelled to get involved on a huge scale to prop up the renminbi.

China had gone through reserves due to this failed devaluation, at an unmatched pace this summer wherein the reserves had dropped by $93.9 billion in August. This was the biggest monthly fall on record as well as the largest with regards to percentage terms since May 2012. This is set to continue for at least the remaining of the year. China would be slowly moving towards a much flexible exchange rate though not yet willing to feature a considerably weaker renminbi

Quantitative Tightening

As per UBS analysis, almost 70% of China’s reserve accumulation between 2005 and 2014 was from the country’s enormous present account excesses. The total reserves emaciated at $4 trillion in August 2014 had been on a steady decline since then.

As for the composition, UBS note that almost two-thirds around 62% was held in US dollar assets with about $1.27 trillion in the US treasury bonds. China had shifted from being a net buyer to a net seller of dollar assets to defend the value of the renminbi and this has given rise for concern that Beijing’s actions tends to have a stifling effect on the global credit as well as liquidity conditions.

This occurrence named as `quantitative tightening has been seen as concern when China can no longer play a part as the driver of global economic prosperity, at a time when the Federal Reserves is ultimately poised to begin normalising the monetary policy. In the midst of the trouble surrounding China’s prospects, economist tends to remain optimistic, speculating the fears of a dwindling war chest are possibly overdone.

China/Emerging Markets – Offload Foreign Currency Assets

Bumper reserves of Beijing, at $3.6 trillion, seem to be adequate in continuing to establish the currency and covering 20 months of imports of goods and services. All this, states, Tao Wang at UBS, `while the country continues running a current account surplus of over $300bn a year’.

Others consider that Beijing’s intensive reserve accumulation had been developed to confront precisely the kind of headwinds presently facing the country and are not surprising that the Politburo is now organizing them for the same purpose.

The authorities have also other various tools to fight off tighter monetary conditions. With regards to the impact on the growth of China on the rest of the world, the QT theory for intuitive appeal is still to be materialised in the form of rising bond yields with higher debt costs in the developed world.

China together with the other emerging markets could be offloading their foreign currency assets to handle their individual exchange rates though these may not be destined to drive up the bond prices according to economists.

Nine of the World’s Biggest Banks Form Blockchain Partnership

Banks in Partnership to Form Blockchain

According to reports, nine of the world’s biggest banks which include Goldman Sachs as well as Barclays have come together with New York based financial tech firm R3 in order to develop a structure in utilising blockchain technology in the market.

For the first time banks have now joined forces to work on a shared way in which the technology that helpsbitcoin a Web based cryptocurency couldbe utilised in finance. Interest in blockchain has increased in the past few years and has already attracted major investments from many important banks which would be saving them money by making their operation quicker, efficient and more translucent.

The latest project which is the outcome of over a year’s worth of consultations with the R3, the banks as well as other members of the financial industry, would be led by R3 CEO David Rutter, earlier CEO of electronic trading at ICAP Electronic Trading which is one of the world’s largest interdealer brokers.

Rutter had informed Reuters recently that they had several round tables to consider in depth what the possible implications of the blockchain would be and what it could probably do in order to save money and time as well as to create an improved paradigm for the world of Wall Street and finance.

Function as Huge Decentralized Ledger

Some of those who have signed up for the initiative are J P Morgan, UBS, State Street, Royal Bank of Scotland, BBVA and Commonwealth Bank of Australia and Credit Suisse.

Blockchain tends to function as a huge decentralized ledger of all bitcoin transaction made which has been verified and shared through a global network of computers.

Hence it tends to be effectively tamper-proof. A team from Bank of England have been dedicated to it calling it a `key technological innovation’. Data that can be safeguarded by using the technology is not limited to bitcoin transactions.

Two parties could utilise it for the exchange of any other information quickly as well as without the need of a third party to verify the same. Rutter has mentioned that the earlier focus would be to approve on underlying architecture, however it had not been certain whether it would be supported by bitcoin’s blockchain or another one like one which is being built by Ethereum, offering additional features than the initial bitcoin technology.

Technologies - Transform Financial Transactions

He further added that once the same is agreed on, the first use of the technology could be the issuance of commercial paper on the blockchain.

He is of the belief that these technologies would probably be post-trade and the savings would be in the settlement side, in post-trade in issuance though not in exchange trading of OTC trading, in the near future. He also mentioned that R3 will soon be announcing a few more banks that would be joining the banks.

 Hu Liang, Senior Vice President as well as the head of emerging technologies at State Street, had mentioned in a statement that these new technologies could transform how financial transactions are recorded, reconciled as well as reported, with all additional security, lower error rates and significant cost reductions.

Could This Start-Up Save the Greek Economy

Week Long Start-up – Contribute to Crisis Worn Greek Economy

A week long start-up fast-track program had been started recently in London for the purpose of locating ways which would make some contribution to the crisis worn Greek economy. In 2012, the Greek government had the largest sovereign debt default in history and on June 30 2015, it became the first developed country to fail in making an IMF loan repayment while at that time, Greece’s government had debts amounting to €323bn.

Six short listed companies would now be working with mentors as well as investors which includes Steve Vranakis, Google executive together with George Kartakis of PayPal owned Braintree in refining their views prior to competing in a Dragons Den-style event.

The idea includes a chemical formula in order to protect historical sites from illustrations, a scheme of recycling unused hotel toiletries, a Mastiha liqueur importer, an online education manager a digital diary for the purpose of booking civil weddings as well as an internet shop for products that are handmade by the Greek businesses.

The accelerator program which is run in partnership with Watershed Entrepreneurs is planned by Greek expats as well as others who have a social and an economic impact in Greece.

The Brain Drain-Lost Generation-Lose Contact

Co-founder Effie Kyrtata, a 25 year old Athenian who had moved to London seven years back has stated that `as they are based in London, they are tapping into the dispersion, the global community who are connected with Greece.

He adds that they have seen a lot of people leaving Greece to go to other countries – the brain drain, the lost generation and lose contact with Greece and that he wants to create a bridge between Greece and the UK’. Reload Greece, has helped entrepreneurs to raise £1m in funding over the past 18 months which generally runs mentorship schemes that tend to run for several months, however was prompted to do the strong accelerator as a reaction to the recent economic improvements in Greece.

Kyrtata has stated that this is our effort to do something fast due to the great need that exists. They are aiming to activate the community which resides abroad in making an immediate impact now and what can be done that will help the Greek economy straight away by using the youth and the people who have left’.

Six Start-ups – Refining Business Plans/Coordinate/Interact

The six start-ups that had been selected from more than thirty applications from the UK as well as Europe would be refining their business plans, coordinate with successful entrepreneurs and interact with expert mentors prior to pitching to a panel of investors. The winner is said to receive five free business coaching sessions from Eudaimonia Coaching.

However, Reload Greece is hoping that all the participants would be able to make their contributions to the Greek economy by developing jobs and boosting businesses. Moreover, the non-profit organisation also perceives its task as much more than financial. Kyrtata has commented that they desire to change the perception which the world has created about Greece by showcasing young as well as successful entrepreneurs who could make a difference and that there is a crisis and it is essential to be motivated to create new things’.

China Economic Transformation Painful and Treacherous

China’s Economic Changeover – `Painful & Treacherous’

China’s changeover from an economy which is greatly dependent on manufacturing is a painful and treacherous one. China’s economic reformation has entered its most critical phase and authorities should deepen improvements in significant areas, eliminate barriers and restore the framework. Various challenges and tough times will be faced ahead.

This would create rare investment opportunities together with volatility and fluctuations and investors need to be positive and alert, looking for options to profit from the changes. China’s Premier Li Keqiang answered queries during a meeting on September 2, 2015, with foreign company executives at the World Economic Forum – WEF, in China’s port city Dalian and stated that China should embrace its global obligations with regards to combating climate change and that the country was already under huge pressure to meet emission reduction goals.

He admitted that the country is on track in achieving its target this year. He had informed the audience at the event that it was difficult to achieve 7% growth domestic product – GDP growth as China has targeted in 2015. However the nation’s new growth drivers as it tends to move from factories to a broader, service based economy would speedily tend to take shape.

Leaders Not Influenced by Short-Term Fluctuations

Li added that the Chinese economy has a bright future to what is known as the Summer Davos saying that `this is not unrealistic optimism’. Li further commented that China would be continuing in reforming its markets which included adopting an open and transparent capital market and relax restrictions on capital flow in the country.

He adds that over 10,000 new businesses are being registered in China each day and `sharing economy’ have been making new ways in creating growth.As the changeover takes place, leaders of China would not be influenced by short-term fluctuation in the economy, according to Li, who describes the company as shock-resistant and resilient.

His message reverberated to a statement which had been made by Finance Minister, Lou Jiwei earlier at the G-20 meeting in Ankara, Turkey wherein he had informed that China was not focused on monthly data. The position is at add with some of the economists who believe that what data is available from China, indicate that the world’s second largest economy is probably heading for a recession.

Risk of Falling into Deflation

Recession is usually demarcated as two successive quarters of a contraction in GDP. The influential Citigroup chief economists and a former member of the Bank of England’s interest rate-setting committee, Willem Buiter, have cautioned in a note that `there is a high and rising likelihood of a Chinese, EM – emerging market and global recession scenario playing out’.

Later on he also informed CNBC that the official data which had been provided by China was `largely meaningless’ and as per Citi’s own model, the economy of China had increased by 4 percent in 2014 and not at 7.3 percent since the number was studied down, by China earlier in the week.

The data that was released recently indicated that consumer inflation had accelerated in August when producers’ prices had fallen deeper into deflation. The CPI – China’s consumer price index increased to 2% in August from the previous year against expectations for a 1.8% increase from Reuter’s poll, following July’s gain of 1.6%. Chief China economist, Li-Gang Liu, at ANX stated that `as PPI remains negative for over three years, China is still facing the risk of falling into deflation’.

Coin is the Future of Payments

Coin – Secured & Connected Device for Transaction

Coin, a secure, connected device can hold and act like the card we tend to carry and works with debit cards, credit cards, gift card, membership cards and loyalty cards. Instead of carrying multiple cards, users could carry one Coin with several accounts together with information in one place.

Coin functions by enabling the user to add all the cards onto one piece of technology on `the Coin’. On signing with the Coin app with the same identifications to order Coin, users need to create a unique six digit tap code and when the app is set up, they can pair their Coin with the addition of new card by entering the information manually, swiping the card through an included card reader which goes into the headphone jack of the phone or by taking a picture of the card.

The Coin tends to get connected to the smartphone via a secured Bluetooth channel which is designed to thwart third parts from using the Coin or in transmitting information from it without access to the user’s smartphone. Its feature of the Lock-and-Find tends to provide a real time validation of the owner of Coin being available at the time of the transaction. Should the owner not be available at the time of the transaction, Coin tends to lock itself and can be found by the owner utilising the mobile app.

Designed on Custom 128-bit Encryption Layer

Coin has been designed on a custom 128-bit encryption layer for Bluetooth which can safeguard sensitive information as well as prevent man-in-the-middle outbreaks as informed byCoin CEO Kanishk Parashar to TechCrunch.

When not in use, the Coin tends to remain in locked position and when one intends making a transaction, a single tap on the Coin’s solitary button would activate the device to do a quick search for the specific smartphone and after a couple of seconds it will get unlocked. If the phone is on Airplane mode or turned off or else unavailable, user could unlock the Coin by editing the same six digits Morse style pin code which is utilised in accessing the Coin app.

The Coin functions as a standalone device and the mobile device is essential for the initial set-up for the purpose of adding or changing cards on the Coin and to completely use the Lock & Find system. However, it could also be used without the mobile device.

Stays Active for Seven Minutes

It can stay active for around seven minutes once the same is unlocked, in order that the waiter tends to have the time to swipe and then it automatically gets locked.

Moreover, it also remembers its last known location and alerts the user as soon as it contemplates that the smartphone could have been separated from the Coin. Users have the opportunity of saving up to eight cards on the Coin at a time and can re-sync various cards which are stored in the app as long as they are within reach of their smartphone.

Parashar informed TechCruch that the team have been working on an EMV product and that Coin would be attempting to make the shift as seamless as possible for the user. However, it seems too early in knowing the exact deal or trade-in process. Parashar had commented that it would be something sizable enough to show their appreciation for early adopters.

Save tax by investing in Mutual Funds

Mutual Fund – Substantial Returns

A collective investment in the form of mutual fund is professionally handled fund and investing in it could maximise the savings as well as receive substantial returns. As an investor, one needs to identify the needs and goal for the investment which could be in funding for a child’s education or retirement or a secondary income. In identifying the goal one could opt for the most appropriate investment options and reap the benefits. Tax savings mutual funds are known as Equity Linked Saving Schemes – ELSS wherein the main objective of these funds tends to provide a tax rebate of the Income Tax Act under section 80C and are also exempted from taxes for long term capital gains. Tax rebate from one lakh INR to 1.5 lakhs in 2015 had been increased by the Government of India. For ELSS, the minimum investment tenure is 3 years and if the fund tends to do well it could offer benefits of around INR 1 lakh. ELSS funds are offered 13% to 22% returns annually averaging to around 17.5%. Due to these reasons ELSS seems to be one of the topmost tax saving mutual funds of 2015. Besides this, other popular tax saving investment comprise of –

• Tax Saving Fixed Deposit wherein one could benefit up to 1 lakh INR though the interest which is earned from fixed deposits tend to be taxable 
• National Savings Certificate – NSC – which enables investments as low as INR 100 with a rate of interest of 8.5% for a period of 5 years and 8.8% for 10 years wherein one could save around INR 1 lakh with this scheme. 
• Home Loan Principal – under section 80C, principal amount on home loan qualifies for a maximum deduction of INR 1.5 lakh. However the same is not applicable for properties under construction as well as commercial properties. 
• Rajiv Gandhi Equity Saving Scheme – RGESS is a good choice for first time investors since it tends to offer tax savings of around 50% on the invested amount for the first year. Maximum deduction is INR 50,000 which can only be claimed by those whose annual incomes falls below INR 10 lakhs.

ELSS – Long Term Investment

ELSS seems to be a better investment plan due to its comparatively minimal lock in period of 3 years over Public Provident Fund – PPF which tends to be locked in for a period of 15 years. National Savings Certificate – NSC on the other hand is locked in for a period of 6 years and fixed deposits are locked in for 5 years. Moreover, ELSS could offer enhanced returns over the long term since it is an investment in equity markets. Prior to investments one needs to be well informed on the risks and expenditures associated with mutual funds. Some insight could be beneficial to the investors such as –

• Considering the prevailing financial situation of the market intending to invest in 
• Select an experience fund manager who is well versed in delivering good results, one who will keep you informed on the anticipated trends as well as prospects of the fund in the market 
• The prevailing performance of the mutual fund need to be investigated to lessen probable risks and look out for premium, mutual fund rates as well as consistency of the fund in the market 
• Match the returns of the fund with the other tax saving investments 
• Discover hidden expenses like the fund manager’s commission, marketing expenses and the other expenses.

China Money Market Stabilises After PBOC Injections; Investors Eye More Easing

Medium-Term Lending Facility – MLF Eased Market

China’s main money rates had been mixed recently as the confidence of the investors in the market seemed to recover a bit followed by huge fund injections by central bank earlier this week. Liquidity situations seem to be tightened over the last 10 days though traders had informed that they are speculating on another major easing move soon, by the central bank.

One trader has commented at a city commercial bank in Shanghai, that that they have experienced a difficult week. Mostly it is impossible to purchase overnight repos in the first two days. The medium-term lending facility – MLF and injection achieved to ease the market and these movements relieved investors and major banks, Some of the major banks have begun providing funds

The outcome of China’s surprise yuan devaluation on August 11, market viewers are concerned of the investors moving quickly out of yuan assets and into dollars, forcing yuan liquidity as well as the money market. Constricted liquidity could have also been a factor in the large equity market sell-off.

Central Bank – Address Liquidity Concerns

Trailing after a partial recovery earlier in August, benchmark of China’s CSI 300 equity index had fallen down by 11% on the week by The volume weighted benchmark seven day repurchase agreement –repo rate, considered the best indicator of short term liquidity conditions in China, increased by 11 basis points from August 11 to August 20 eventually hitting 2.58% on Thursday afternoon.

The central bank moved to address liquidity concerns on Wednesday and Thursday by lending 110 billion yuan to 14 banks through it medium term lending facility as well as injecting 120 billion yuan in money markets through the operation of open market. Central bank’s open market injection this week of 150 billion yuan was the largest since early February.

The repo of seven day eventually responded on Friday with trading at 2.5475 percent late morning with a modern fall of 3.26 basis points from the earlier day’s closing average rate. However, liquidity was yet under pressure owing to client dollar demand as well as real borrowing rates remaining high further down the yield curve. Traders are anticipating easing measures to come up soon.

Push Down Long Term Rates/Dissuade Borrowers – Short Term Money

A trader had mentioned that the central bank is subtle and they have to take into consideration the potential yuan devaluation as well as economic pressures in the next half year and once the direct injections is not capable of offsetting the liquidity shortfall adequately, central bank would have to cut interest rates.

One day repo had gone up by 0.99 basis point at 1.82% against Thursday’s closing and the 14 day repo was up, 1.75 basis point at 2.71%. The Shanghai Interbank Offered Rate – SHIBOR, for same tenor increased to 2.5990 percent up 1.30 basis point from the earlier close.

 In order to decrease speculation and guide more funds in long term productive investment, central bank has been making efforts to push down long term rates and dissuade borrowers from easy short term money. However a shaky stock market tends to keep it under pressure in keeping short term rates low in order to support share prices.

Long term rates on safe haven government debt and policy bank bonds seem to have fallen severelysince equity modification in late June and yields on corporate debt have scarcely shifted.

How to Stop a Foreclosure with a Short Sale

When you take out a home loan, you agree to make regular payments over 10 years or longer until you pay off both the original loan and the interest the lender charged on that loan. If you experience a medical problem, lose your job or go through other lifestyle changes, you may find that you can no longer pay off your mortgage. This gives the lender the right to foreclose on your home. Before a foreclosure ruins your credit, find out how you can recover with a short sale.

What is a Short Sale?

Many homeowners turn to companies like Realty ONE Group because they aren't sure what a short sale is or if a short sale is right for them. A short sale is essentially an agreement between you and your lender that allows you to sell your home before the lender forecloses on the property. You may have several months or up to one year to find a buyer for your home. Lenders often prefer going through a short sale than foreclosing on a home because it gives the bank more money.

Benefits of a Short Sale

Though a short sale will still appear on your credit report, many find that it impacts them less than a foreclosure does. A foreclosure will remain on your credit report for up to 10 years, which will make it difficult for you to obtain another home loan or any other type of loan. Depending on the agreement you work out with your lender, you may have the chance to walk away free and clear too. Some banks will agree to accept a set amount to pay off your total mortgage. As long as you sell your home for that amount, you won't owe the bank any additional money.

Before Putting Your House on the Market

Before you decide to go the short sale route and put your home on the market, you need to get some help from professionals like Kuba Jewgieniew and others. Those professionals can help you with everything from making arrangements with your bank to finding a qualified buyer and closing on the house. Professionals can also help you determine if you qualify for special programs like the Home Affordable Foreclosure Alternatives Program. These special programs can help you sell your home quickly without damaging your credit report or score.

Oil Prices Fall Again as U.S., Asia Demand Looks Set to Weaken

Oil Prices Dropped in Asian Trading

Oil prices dropped again in early Asian trading recently as traders speculated lowering refinery consumption after the US summer while the weakening economies of Asia and the high global production showed concern on the oversupply. The US crude futures had been trading at $41.84 a barrel each at 0014 GMT, which was around 3 cents below their last settlement and not more than six years low touched earlier this week.

Brent futures had been at $48.61 per barrel, down by 13 cents though the same is still some way from their 2015 low of $45.19. Both crude oil benchmarks have more than halved in value from the last year. They had rallied earlier in the year though are now almost a third below their last year rise in May.

Data have conveyed that several speculators have taken on large bets on further likely falls lying ahead. The reason for the change being twofold, one is the weak demand in several countries due to dull economic growth together with surging US production. Beside this is the fact that the oil association OPEC is unwavering in not cutting production as a way to prop up the prices.

Speculating Rise in U.S, Stockpile

According to ANZ bank it was commented that the `fundamentals suggest downside risk still tends to remain in key markets, especially iron ore and crude oil, in the months ahead’, speculating a rise in U.S. stockpile in the forthcoming months as refiners reduce operations for the purpose of maintenance as the summer driving season tends to come to an end thereby reducing the demand for US crude.

A subsidiary of Fitch Ratings, BMI Research had stated that the market could have an overshot to the downside, hoping in a modest recovery in the prices towards the fourth quarter. BMI Research analyst had commented that `the downward move had been largely speculative driven by the Iranian nuclear accord, economic uncertainties surrounding China and bearish re positioning in the futures market’.

Several oil traders have been positioning themselves to earn profit from an additional drop in U.S. prices. With regards to betting on further outright falls, the traders have become aggressive in taking up put options, an option which tends to sell a contract once the price begins to fall to a certain level, at a price as low as $35 and probably $30 a barrel.

Long-Term Outlook Seems to Remain Bearish

One broker had informed that the amount of queries that they had recently received with regards to leveraging bets on further price falls, have been quite surprising. Underlining the bearish sentiment, money managers as well as hedge funds cut their net long holdings of Brent crude futures for a fourth straight week, according to exchange data shown recently.

Long-term outlook also seemed to remain bearish with BMI Research guessing `oil prices probably to remain fixed till 2018’. They had stated that `the return of Iranian oil to the market, coupled with strong project pipelines in North America, the Middle East, West Africa and Kazakhstan would see global supply growth exceed the growth in global consumption for the next two years’. It was forecasted by the firm, that Brent would average to $56 and $55 in 2016 and 2017 respectively with U.S. crude averaging $53 in both the years.

Apple Feels the Pain of China's Yuan Move

Apple’s Discomfort on China’s Yuan Move

U.S. companies relying greatly on sales to China which includes Apple as well as fast food chain Yum Brands are feeling the discomfort of China’s move to weaken its currency. On Tuesday, in reply to the country’s economic slowdown, China’s central bank undervalued the nation’s tightly controlled currency, the Renminbi – RMB or the Yuan.

The 1.9% cut, its biggest one-day drop in decade,was called as a onetime adjustment by the People’s Bank of China though the surprised move had moved the stocks down together with concerns that it would affect U.S. companies, like Apple which have been on the rise selling their products to the world’s most populated nations. China had become Apple’s leading revenue source under CEO Tim Cook, after its Americas region, including the U.S.

The iPhone maker, in the latest financial quarter ending June had stated that China had made up around $13.2 billion of its overall $49.6 billion by way of revenues. This was up by 112% from the same quarter of 2014, when China had made up just around $6.2 billion of the overall revenue of Apple.

Several Companies Deprived of Huge Percentage

Yum Brands also had broad exposure to China owing to the popularity of its KFC fast food chain and about 52% of its revenue came from China as per Goldman Sachs. Mead Johnson Nutrition, the baby formula maker, in the meanwhile developed 31% of its revenue from China and Tesla; the electric car maker had been moving to sell in China after the nation had broken a record for car sales in 2013.

 Wynn Resorts that runs hotels as well as casinos gained a massive 83% of its sales to China, according to Goldman. Several of the chipmakers together with other tech companies too derived a huge percentage of their revenues from China as per Goldman Sachs which included:

• Chipmaker Qualcomm with 61% of its revenue exposed to China 
• Chipmaker Nvidia got 54% of its revenue from China 
• Chipmaker Intel Corp that got 36% of its revenue from China

Negative Effect on Sales – Offset of Lower Production Cost

The negative effect on sales could be the offset of lower production cost for some of the companies, according to Adolfo Laurenti, chief international economist for Mesirow Financial in Chicago.

Apple for instance assembles several of their products in China and hence could benefit from the cheaper Yuan. Laurenti also mentioned that companies having strong brands, such as Apple could not be rejected as badly as the less popular products since wealthy Chinese consumers would be willing to spend more to have those brands name.

He further added that `Chinese consumers in particular preferred American brands especially marquee products and so the adjustment in price would not deter them much’. The major apprehension is what the devaluation move would recommend about the larger economy of China, according to senior economist with Morningstar Investment Management, Francisco Torralba and his main concern is that the depreciation of the RMB is construed by markets as a sign that Chinese economy tends to be weakening more than what they contemplated. He adds that should it occur, sales to China will be affected by more than just currency cost.

Easy Ways to Simplify Your Finances

Trim Spending If Possible

In the present scenario, prices on commodities have been escalating and at times one may find it difficult to cope up with the expenses wherein it tends to get more than the income. No matter how hard one may try to simplify life there seems to be no way to mentally track every financial deal in the current busy world.

Keeping track on the budget of what comes in and goes out, is very much essential which could help in understanding where one tends to spend more and where you spend it, so that you could trim spending wherever possible. The aim is to understand and trim the budget categories which would otherwise lead to stress and several sleepless nights or probably financial adversity. Creating a personal budget could be helpful since it provides a deep vision on the finances, on its expenses and savings. It is essential to first list out –

•  Fixed expenses which are those that do not tend to change for instance the homeowner insurance, mortgage etc. 
•  Variable expenses are those expenses which may differ monthly such as the electric bill, water bill, grocery bill etc. 
•  Check which major categories each bills may fall in, such as home expenses, phone expenses, car expenses, utility expenses etc. 
•  List out each major category, detail each expense under the categories and sum up each category which will then indicate on the accurate expenses incurred in each category. The individual will get a better insight on the expenses done and where one could draw the line in curtailing the expenses.

Personal Budget

You could follow the steps by starting on making a list of necessities which needs to be paideach month by creating a personal budget. These could be the expenses which cannot be avoided and is incurred every month as mentioned earlier like the groceries and all the payments of utilities.

Then we have the personal expense ladder which may include things which provide security and peace of mind like health insurance, life insurance etc. If the expenses tend to exceed the income slab, one may need to reconsider on the expenses involved which could be the internet usage, cable or satellite television, phone etc. and find out means of curbing on the expenses which would not be much of a strain at the time of making payment.

The amazing thing about personal budget is that it is an eye openeron where you can cut down in some areas to save on some cash.

IRA – Individual Retirement Account

Individuals could evaluate their net income or loss by considering the income and subtracting the expenses and you tend to meet up with a positive number. Then there seems to be a balance left after meeting all the expenses.

The extra money could be then put into a IRA which is an individual retirement account, offering a valuable future tax break, a tax-free income during retirement. The benefit of a Roth IRA is based on the beholder’s tax bracket, both now and when they tend to retire.

 IRA is an ideal saving for young lower income workers, who will not miss the upfront tax deduction and will benefit for years of tax free compounded growth. Cutting down on unwanted expense could also help while making purchases which could benefit tremendously in managing the income within its limits and be able to cut back for some free cash.

Three Ways To Take Your Jewelry Company To A New Level

These days, many jewelry companies are ready to operate at a greater level of excellence and expedience in order to optimize their conversion rates and expedite daily operations. If these are your objectives as a jewelry owner, it's important to note that there are numerous ways for you to realize your objective. Here are three:

1. Invest In High Quality Refining Services. 

If you're serious about taking your jewelry company to a new level, consider the value of investing in high quality refining services. Refining services help your products look as pristine and perfect as possible, and this can contribute to the development or maintenance of a very positive reputation in the mind of the public. Once you start looking for the ideal refining services, consider a company such as JRG. With extensive industry experience and a passion for making your jewelry look absolutely amazing, the company's professionals can provide you with the excellent, expedient products and services you're looking for. Click here to learn more about the company.

2. Seek Digital Marketing Assistance. 

In addition to investing in high quality refining services, it's a good idea to seek out high quality digital marketing assistance. This strategy is important because effectively advertising your company via internet is a wonderful way to extend your sphere of influence and build a bigger base of lifelong customers. To ensure that you pick the ideal digital marketing company to assist you, make sure that the firm you select can offer all of the following services:

•  online reputation management (ORM) 
•  link building 
•  social media optimization 
•  keyword research 
•  Google analytics 
•  content creation 
•  web design and development 

3. Focus On Employee Optimization.

Your employees play a profound role in determining how effective your business will be. Since this is the case, it's a good idea for you to focus on employee optimization. There are numerous ways that you can help your employees become better on both a personal and professional level. One strategy you should consider is periodically throwing corporate parties or company get-togethers that take place outside of the work setting. Doing so enables your employees to connect with one another in a more personal way that can help facilitate group cohesion and diffuse office tension.

Conclusion 

If you run a jewelry company and want it to be as successful as possible, it's important to know that implementing a strategic plan can help. When you're ready to get the process started, consider the value of making the aforementioned tips an integral component of the strategic plan. Good luck!

Asset Allocation - Don't Put All Eggs in One Basket

Asset Allocation – Portfolio Distribution of Various Investments

Asset allocation is a term on how the portfolio is distributed with the various investments. As such there does not seem to be any simple formula which could define the right asset allocation for a single investor. It is one of the most major decisions which investor could make, according to a certified financial planner and the founder of the Delancey Wealth Management, Ivory Johnson.

A simple expanded portfolio could comprise of many investment classifications like stocks, cash and bond and the allocation to each of these groups should be based on the investment goals, risk tolerance as well as the time horizon needed for the utilisation of the funds.

However the agreement among several financial professions is that asset allocation seems to be one of the most major decisions which investors should make. Selection of individual securities is secondary to the way one allocate the investments in stocks, bonds and cash as well as equivalents which would be the main factors of one’s investment consequences.

Extension of Financial Plan

In brief, asset allocation should be an extension of a financial plan. Three main sections of asset being equities, fixed income and cash and equivalents, tend to have various levels of risk and return. Hence each will behave differently over a period of time. The benefits of using an expanded asset allocation are that the combination of several various investments could have varied patterns of returns according to Johnson. He adds that this would mean that the goal of portfolio variation would be to generate the maximum possible return for a specified level of risk.

For instance, if a portfolio of a small company stocks could cause greater returns than an exp

anded portfolio of stock then it is unlikely to achieve that result without considerable more risk or volatility. The outcome would be that in the process of determining an appropriate asset allocation, the combination of assets to hold in your portfolio would be a very personal one. Asset allocation which would work best at any given point of time would depend mainly on the time horizon as well as the ability to handle the risk factor.

Life-Cycle/Target-Date Funds

Known as life-cycle, or target-date funds, asset allocation mutual funds are an effort in providing investors with a portfolio structures which would address an investor’s age, risk factor as well as investment objectives with an adequate allotment of asset classes.Nevertheless, critics of this approach indicate that coming to a standardized explanation for allocating portfolio assets, can be challenging due to individual investors would need individual solutions.

By including asset groups with one’s investment returns which tend to move up and down under various conditions in the market within a portfolio, investor get the opportunity of protecting themselves from substantial losses. Generally, the returns of the three main asset groups have not moved up and down at the same time and the market condition which tends to cause one asset group to do well often causes another asset group to have an average or poor returns.

The investor here on investing in more than one asset category tends to reduce the risk of losing money and his portfolio’s overall investment returns will not suffer losses. Should one asset group’s investment return tend to fall; the investor would be in a position to counteract the losses in that particular group with a better option in investment returns in another asset group.

Greek and Tunisia Crises Set to Hit Thomas Cook

Tour operator Thomas Cook is set to lose million by way of revenue due to last week’s terrorist attack in Tunisia as well as the on-going financial chaos in Greece as they head in the peak of summer trading period. According to analysts at Jefferies, these two catastrophes could cost the under-pressure FTSE 250 Company, around £20m.

Thomas Cook is due to report the third quarter numbers covering the three months to the end of June and is expected to update shareholders on how Tunisia and the uncertainty about Greece has affected its business. According to analysts estimate, ten percent of Thomas Cooks’ passengers tend to travel to North Africa with about a third, bound for Tunisia.

Earlier in the month, the Government had warned against all, though essential travel to the country after around 38 tourists, most of which were Britons, were killed on June 26, when an Islamist gunman had attacked holidaymakers at a beach resort in Sousse.

Due to this, Thomas Cook had cancelled all booking to Tunisian till the end of October and flew all its customers home. Uncertainties about travelling to Greece also affected the tour operator. The tragedy in Tunisia as well as the chaos in Greece has been a difficult time for Thomas Cook.

Imposed Capital Control to Protect Banking System

Besides, Athens had also imposed capital control in a desperate move in order to protect its banking systems amid fear that the indebted country would be forced from the Eurozone.While the introduction of capital controllimits Greeks to €60 a day from ATMs,the same is not applicable to tourists, where the country is facing a cash crisis.

 The FCO have advised Brits who tend to travel to Greece to ensure that they carry sufficient cash which would last for the duration of their trip. Analysts stated that tourists travelling to Greece and were advised to carry plenty of funds with them had fears related to theft which could have discouraged travellers from late booking to the country.

It has been estimated by Credit Suisse that Greece accounts for about 15% of passenger volumes in summer season. Besides losing some of these bookings, the company’s margin is also likely to have come under stress as it struggles to find substitute destinations at late notice for the customers.

Analyst at Jeffries, Mark Irvine-Fortescue stated that `the terrorist attack in Tunisia and the on-going uncertainty in Greece add risk for tour operators heading into the peak trading period.

Share Prices Dropped Due to Attack/Turmoil

Tunisia is likely to negatively impact holidays in the region. The `Grexit’ saga creates uncertainty which could hold back some potential for late bookings’.

The tour operator also faced calls for a boycott in May when an enquiry in Wakefield ruled that the company had breached its duty of care when two kids had died of carbon monoxide poisoning due to a faulty boiler, in 2006. Irvine Fortescue has further commented that `while Tui and Thomas Cook have provided public assurance about customers being unaffected, Sunday’s `no’ vote meant more uncertainty which is not helpful’. Both the companies’ share prices had dropped recently due to the attack and the turmoil in Greece.

Greece Asks For A Third Bailout

Greek Government’s Official Request – 3rd International Bailout

The Greek government has officially requested a 3rd international bailout in order to help in paying its debt, to prevent economic downfall and ejection from euro. It was recently confirmed by the European Stability Mechanism which acts as Europe’s financial rescue fund that Greece had applied for a new bailout package. According to a senior economist at ING, Carsten Brzeski who informed CNBC through email that there would be new negotiations and these would be tough.

Greece had received its first aid in 2010 with 110 billion euro rescue package while the second program brought the bailouts of 240 billion euros, for which the payment deadline was extended recently for another four month on the premise that the Greece’s government would be making a renewed push for economic improvements. Greece still needed financial help due to its huge debt burden unlike other euro zone members likeIreland and Portugal.

The latest bailout program ended recently and Greece had missed the big debt payment to the International Monetary Fund thus becoming the first developed economy for non-payment of fund. The Greek government has requested for the new package for three years and has promised to present fresh economic reforms for exchange of money. Moreover it has also implied that it would prefer some form of debt relief from previous bailouts.

Greece Economy in Deep Crisis

The European Union is expected to come to a decision soon whether to grant another bailout program once it receives more details with regards to the economic plans of Greece. Recently the International Monetary Fund had estimated that Greece would need at least 50 billion euros though analysts are of the opinion that the figure could be much higher since the IMF analysis had been conducted prior to the Greek banks being forced to shut down creating added havoc on the economy.

Greek economy is in a deep crisis due to years of overspending as well as mismanagement and the government has fundamentally run out of funds. Banks have been closed for over a week and will continue to remain close for some time with cash withdrawals being stopped for individuals and businesses. Driving has also been stopped by regular people since they now want to conserve any cash that they may have.

Experts are of the opinion that Greece would soon be compelled in printing their own currency and ditch the euro if the leaders tend to disagree on the new rescue package. Market News International – MNI, the News organization had recently reported that the creditors of Greece have been considering the possibility of a third package for several months, quoting top euro zone official.

Germany Powerhouse of Euro Zone

The source also informed that the possibility had increased in the hope of higher deficits and weaker growth owing to the turmoil of the recent snap election of the country. The deputy parliamentary floor leader of Chancellor Angela Merkel’s CDU party, Michael Fuchs, informed CNBC that another round of financial aid would probably be difficult.

He commented that it would depend on the Greek Government and that they have to come up with serious proposals. Greece needs to show that they are capable of really changing the situation. Germany has been known to be the powerhouse of the euro zone and the German taxpayer had portrayed signs that they are little more reluctant in continuing to bail out the struggling euro zone nations.

According to a recent new survey by Polit Barometer, around three quarters of Germans are in doubt that the Greek government would implement the announced serious measures and reforms while an INSA poll also indicated that only 21 percent of Germans support the present extension for Greece. German parliament had voted in support of the bailout extension, however with lot of dissatisfaction shown in these polls, it could not be too long before the German politician may change tact.

Cease Fire But No Peace Agreement

ING’s Brzeski informed CNBC that `the current compromise was a cease fire but no peace agreement. A lot of goodwill has been destroyed by the Greek negotiation strategy and it is completely open whether there will be an agreement on a third package or whether we could still see a Grexit later this year’.

Chief executive at the German Federation of Industry, Markus Kerber, had informed CNBC that Greece needs the reforms for the people of Greece and not just of its international creditors. He further added that Greece has four months now to show that the new government would be willing to do the structural reforms in the country that has been waiting for long and if this happens in the next four months, then there could be signs of hope on the horizon’.

In the meanwhile, a second reading of gross domestic product for Greece recently indicated that the economy had contracted 0.4 percent in the last quarter of 2014. Leaders of all 28 European Union countries would be holding a summit to decide on Greece’s fate in the euro and have warned that any bailout deal would tend to come with tougher requirements than the earlier deal offered which was rejected by the Greeks in a referendum earlier this month.

Ground Zero'- China's Stock Market Crash Up Close in Shanghai

China Facing Plunging Stock Market

For years the Chinese Communist Party has been capable of keeping control on democracy disputes, protestors, the legal system as well as the military. However it has now been facing a more headstrong opponent in the form of a plunging stock market. Fast paced and invisible defiant market forces have confronted the efforts of the party led government in arresting the month long slide in Chinese stock market and if the same tends to continue, the fall in stock prices could slow the economy as well as weaken the faith in the party’s leadership and power, according to experts on China and economics.

 Three months back the state run People’s Daily had spoken that the increased stock prices were the `carriers of the China Dream’ and the confirmation of President Xi Jinping’s signature vision for what he calls, the great rejuvenation of the Chinese nation. However, what had been addressed as a bull market turned out to be a bubble burst. The main share index of Shanghai is down a third since its peak of June and trading in almost three quarters of listed shares were frozen due to limit declines or completely suspended and the securities regulators were also speaking on a mood of `panic’.

Stock Collapse – Reveals Impromptu Policy Makers

Since the stock market collapsed, the Chinese authorities instructed brokerages as well as insurers to buy, barred insiders from selling, tapping the nations’ sovereign wealth to pile up shares. Moreover, the government also raised patriotism blaming foreigners and arrested rumour mongers.

The Chinese stock collapse has been` a total revelation of how impromptu the policy makers could be in managing the transition to market-driven capital markets and that’s the question of the moment’ comments Daniel Rosen, a partner at the rhodium Group, which is a New York based economic advisory firm. He further adds, that `the question for tomorrow is whether that immaturity applies to their ability to regulate other aspects for the economic transition as well’.

Wary at the prospect of further losses, the Chinese government has taken action by agreeing to establish fund worth 120 billion yuan - $19.4 billion in purchasing shares in the largest companies that were listed in the index. Besides Beijing has also reduced the interest rates, relaxed restriction on the purchase of stocks with borrowed money as well as imposed a moratorium on initial public offerings.

Boom Powered by Retail Supporters

According to Financial Times, the recent dip in the Chinese stock market trailed an extraordinary bull period wherein the Shanghai composite increased by 149 percent through June 12 and the boom was powered by retail supporters who had been new to investing where more than 12 million new accounts had been opened on the stock exchange in May alone. Once controlled by the elites, the stock market progressively has now become a vehicle for China’s developing middle class.

Two thirds of the households who had opened accounts in the first quarter of 2015 had not even finished high school and the Equity market passion had spread to China’s universities, where 31% of the college students of the country had invested in stock, three quarters of which had used money that had been provided by their parents. Chinese have generally put their excess savings in housing, in recent years, however the uneven performance of real estate has prompted their interest in other direction for domestic investments.

Due to strict capital controls it has been very difficult for most of them to move money out of the country and more have turned to stock market. As per Bloomberg, more than 90 million people in China is said to have invested in equities, which is greater than the total membership in the Chinese Communist Party. The recent fall in prices has affected the fortunes of a huge number of people. Should this be a cause of worry for those outside China? Perhaps not.

China Stock Markets – Isolated

China’s stock markets are quite isolated due to a heavily combined global economy which is now the world’s second largest. Foreign investors tend to hold only 2% of all equities of China where equities account for around 5% of the overall financing. The aggregate bank deposits of China are around $2.1 trillion, providing a buffer against huge market fluctuations.

Moreover, the long bulls run which led the June’s collapse had not faded totally and the Shanghai composite is yet up by 20% since January 1. Nonetheless, these types of volatility in the world’s second largest equity market props up questions about the overall health on the economy of China. The GDP increased by 7% during the first quarter of 2015, which was its weakest mark in six years, while stimulus measures implemented by the government is yet to reverse this slide. As per Chief Economist at Deloitte, Ira Kalish, `China’s slowdown already had consequences beyond its borders’.

He has written in ChinaFile that `already the halving of China’s growth has wreaked havoc with global commodity markets and has negatively influenced growth in those East Asian economies that are a vital part of China’s manufacturing supply chain. It could be argued that the imbalances in China’s economy thus represent more of a risk to the global economy than the current and much discussed situation in Greece.