Daily General Analysis
October 20, 2024
Exploring the most impactful news of the day, it is notable how the global scenario is constantly evolving, creating new opportunities and threats in the international financial market.
India seeks to enhance its pact with the US on critical minerals, proposing a partnership agreement that could lead to a free trade deal, bringing significant benefits to the electric vehicles (EVs) sector and reinforcing the "Make in India" initiative. This development could have substantial implications for the global critical minerals supply chain, essential in the manufacturing of advanced technologies and EVs, suggesting a possible shift in power in the global minerals market.
Another news worth attention is the BRICS discussion on a new global financial system. The initiative to create a payment platform that does not rely on the US dollar could reshape international trade and challenge the supremacy of the dollar, affecting economic geopolitics and international relations.
Netflix continues its growth, with a revenue forecast between 43 billion and 44 billion for 2025, indicating an increase of 11% to 13% compared to the 2024 estimate. This highlights the ongoing influence of streaming platforms on global entertainment and consumption trends.
In the economic and political scenario, the tariffs proposed by Donald Trump have worried economists, who warn about the potential for inflation and rising technology prices. This suggests that protectionist policies and trade tensions can have a direct impact on costs for consumers and technology companies' operations.
Vedanta plans to invest significantly in Rajasthan, creating jobs and focusing on zinc, silver production, and renewable energy development. This move not only highlights the growth of the mining and energy sector in India but also reinforces the commitment to sustainable energy sources.
Military tensions between China and Taiwan remain a source of concern, with President Xi Jinping urging the military to prepare for war. This raises geopolitical risk in the region, which could affect global markets, especially in the technology and manufacturing sectors, given Taiwan's significant semiconductor production.
The US deficit surpassing 1.8 trillion in 2024, with interest expenses exceeding the trillion mark, reflects significant challenges for the US economy, including increased political risks due to the high interest burden, reaching the highest level in 28 years.
The price of gold surpassing 2700 dollars marks a clear indicator of economic uncertainty, where investors flock to safe assets. The rise in the price of gold is traditionally a sign of caution in the market, reflecting concerns about inflation, currencies, and geopolitical instability.
In summary, these news indicate a period of significant global changes, impacting everything from critical minerals markets and supply chains to geopolitical and financial dynamics. Investors should consider diversifying their portfolios in sectors such as critical minerals mining, renewable energy, technology, and safe assets like gold. However, it is crucial to be aware of geopolitical tensions in Asia, economic policies in the US, and the development of new financial systems by the BRICS, as these factors can represent both risks and opportunities. Companies like NVIDIA, due to its strong position in the AI market, and giants Apple and Samsung in the GenAI smartphone market, emerge as interesting investments. On the other hand, the volatility of bitcoin, despite its recent success, should be approached with caution due to its highly speculative nature.
