In May 2017, WannaCry, a form of ransomware, corrupted computers in over 150 countries. Typically spread through email attachments, the malicious software exploits a weakness in the Windows operating system, encrypts computer files and demands a US$300 payment, made in bitcoin, for decryption. Swift action by a web security researcher slowed the rate of new infections, but the effects are still reverberating and the perpetrators, who remain unknown, have reportedly made thousands.
The incident also has potentially serious ramifications for investors. Whether you’re considering putting money in the cybersecurity field (which is expected to be worth over $170 billion by 2020) or another industry altogether, there’s a lot to ponder before making a move.
Rising fears, rising stock prices
Cybersecurity firms have faced criticism for failing to protect clients against malware and viruses, but demand for their services increased following the WannaCry attack. News coverage of the incident served as free publicity, attracting new customers eager to protect themselves. As a result, stock prices enjoyed a healthy boost; FireEye rebounded from deep losses in 2016 and shares in Sophos rose 10 per cent, reaching an all-time high.
The aftermath of getting hacked
Even if you’re not investing in tech and cybersecurity, it’s important to understand how digital threats can affect an otherwise stable company. Shares in American chain store Target plunged 10 per cent after an attack, and Sony also saw losses after a crippling blitz in 2011. Though all three companies have seen their stock recover, they’ve endured lawsuits, investigations and other problems, which may make investors nervous.
Before you invest
Business is booming for cybersecurity firms, but this means more companies are entering the marketplace, intensifying competition and threatening profits. A cybersecurity company index formed two years ago has been outperformed by the S&P 500. According to analysts, the cybersecurity industry is also filled with new startups, making it hard to determine who will succeed over the long term while adding greater risk to any investment.
With much of the world connected digitally to one another, the need for effective, reliable cybersecurity is only going to grow in the years ahead. Hackers have proven they can inflict major damage by sneaking behind firewalls, spreading viruses and stealing personal information. So, even though hazards abound for investors, this threat is a potential boon for the industry. On your part, you can avoid taking a hit by doing your research and thinking long and hard about whether you should enter a field where the returns may be high, but the risks potentially even higher.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
The Western world is being pulled apart by rising populism; witness the polarising effect of the election of Donald Trump, as well as the anti-immigration motivations behind Brexit. Mainland Europe is no stranger to this sentiment, with France’s National Front (FN) political party making controversial statements since the 1970s.
The recent presidential election in France was a chance for French voters to align the country either with a broader European identity, or to hold on to a uniquely French identity that some people argue has been lost over the years of the European Union (EU).
A so-called “Frexit” was a real possibility there, with Marine Le Pen taking a strongly anti-EU view. Her opponent, now-President Emmanuel Macron, took a much more open stance to the grouping.
Effects on markets
According to analysts, Macron’s win should help investors see the more positive side to the European story. With the divisive aspects of the campaign in the past, investors can concentrate on the upsides of electing a former investment banker to the role of President of France.
In a post-election analysis, Allianz Global Investors pointed to improving manufacturing output in the euro zone and improving employment figures as signs of European economic health. In addition, the euro is expected to strengthen due to the more stable political outlook for the region.
Specific to Macron’s win, Allianz Global Investors’ outlook for French government bonds is slightly positive. “If Mr Macron finds parliamentary support, we expect tighter credit spreads, a strong reduction of French-specific risk and tighter spreads in the euro-zone periphery.”
What’s next for France, Europe and the rest of the world?
The anti-globalisation message of the Le Pen campaign should not be lost on Asian leaders. The economies of East and South-east Asia are some of the most trade-dependent ones in the world. Because of this, Singapore in particular is vulnerable to any changes to the world trade climate.
So while Brexit will take a couple years to come into effect, and France recovers from the excitement of the election, the rest of Europe will likely need to do some soul-searching. Italy is one to watch – with an election coming at the latest by next year, and with its largely stagnant economy the southern European nation can potentially cause some degree of political uncertainty in the market should its elections not go well for the EU.
Overall, the outcome of the French presidential election is constructive as a major political overhang has been largely removed. Despite the uncertainty about Italy, Asian investors can look forward to a largely integrated Europe that is currently enjoying a period of steady growth and outperforming global equities. This positive European story should provide investors with some comfort and confidence.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
It is well established that watches (or “timepieces”, if you are an enthusiast) can be instruments of investment, with some especially collectible watches selling for millions of dollars at auction.
Unfortunately, it is often the most valuable watches – limited-edition and unique pieces aimed at the super-rich – which tend to soar in value.
So where does that leave the rest of us, who happen to love haute horlogerie but can’t quite shell out $100,000 or more for a watch? Is it still a good idea to start a collection?
The short answer is, yes – buy the right watches and you will have an asset which retains its value, sometimes even beating inflation. In some cases, with some luck, you could even end up making a small but significant profit, as this writer’s friends have done by buying and reselling certain pieces online – rare as this may be.
So how does one start building up a desirable watch collection?
Find your market
The watch trading community is a pretty tight-knit one, with blogs, active Internet forums, influential YouTube channels, evocative Instagram and online marketplaces aplenty.
Locally, there are many resources for budding collectors. Stalwart shops in some of the older malls are a good place to see in real life what retailers are asking for certain watches. Then, head to a reputable online marketplace to see what others are asking for similar models.
If you spot a large disparity in the price of a particular model between a used dealer and a private seller online, that could be an opportunity for investment. For example, we have seen a particular model of Tudor watch on a dealer’s website listed at significantly more than an identical model sold through a private sale. This suggests that there could be an opportunity for profit, as there could be a potentially higher resale value down the line by better matching the good to a more willing buyer.
Brands to seek out
More seasoned collectors will tell you that the ubiquitous brands – Rolex, IWC, Omega, to name just three – really are the more solid investments. There is simply so much demand for Rolexes in particular that some have called them an inflation-proof investment.
Rolexes do cost a lot, however, with some entry-level ones close to S$10,000. This is a stretch for most people, so brands like Omega and Tudor (in the low four-figure range) are accessible purchases – their iconic series like the Omega Seamaster and Tudor Black Bay are in high demand and values tend to remain stable as years go by.
Super high-end
Nice as these everyday classics are, however, they probably won’t yield much capital gain – certainly not on the level of the high-end and limited-edition timepieces.
As with most things, it takes a big risk to potentially make rewards. And this is why limited-edition watches made from rare materials are not only extremely expensive to buy new, but can also be sold for more than they were bought for. An early Richard Mille RM002 tourbillon, for example, had a list price of just under $200,000 new some 10-15 years ago. Now, examples are changing hands for $300,000 or more.
At the end of the day, if you are interested in watches, take the plunge and start a collection. From mechanical movements, to complications and tourbillons, wearing a luxury timepiece lends you an air of confidence and endows you with a sense of well-being. And that’s something your can’t you put a price on!
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
These are unprecedented times – an era in which a sitting United States President reveals more about himself on instantly-published social media than through carefully-crafted and staff-vetted speeches.
This ‘shooting from the hip’ has had unintended financial consequences. For example, a tweet about Boeing charging an “out of control” amount for a new 747 presidential plane wiped US$1 billion off the aircraft manufacturer’s stock market value.
Whether or not what Donald Trump tweets is true is not relevant – it turned out that the actual price of the plane he objected to was nearly 24 times less than what he thought it was, but the share price dropped anyway.
Just a week later, Lockheed Martin lost a stunning US$4 billion for a similar “out of control” tweet about its products. This works out to $28.6 million per character tweeted.
Toyota shares famously lost nearly 2 per cent of their value within five minutes of President Trump tweeting criticism of the Japanese car maker – wiping out an estimated US$1.2 billion.
A common occurrence
So profound – and common – are these boat-rocking tweets from the US President that hedge fund managers and traders have reportedly developed algorithms and models to predict the outcomes of Trump’s behaviour.
Furthermore, app developers have come up with software to send out alerts when the President tweets about a publicly-traded company. The Trigger iOS app, for example, has a built-in algorithm that alerts users whenever Trump sends out a tweet about a stock the user owns.
No choice but to follow?
For whatever reason, humans are so often wracked with a fear of missing out. If that describes you at all, you might want to consider following the @realDonaldTrump Twitter account to stay up-to-date with the Don’s latest diatribes and thoughts. Interestingly, there is an official POTUS Twitter account which is no doubt heavily vetted by his staff if not controlled by them entirely – but this account is largely controversy-free.
Not always good, not always bad
Be warned – as experts will tell you, Trump’s tweets are not stock tips. This is because the full effects of these mini-communiqués aren’t always easily predictable. Sometimes, even his critical tweets have no negative effect on the stock in question. For example, when Trump tweeted threats to General Motors for building a car in Mexico rather than in the US, rather than decline, GM stocks rose 6 per cent that week.
Indeed, as time goes by, professional traders and retail investors alike have become so accustomed to impulsive words coming from the White House that the market doesn’t seem to react as much as it did at the end of last year. When one tweet expressed disappointment over retailer Nordstrom’s decision to dump Ivanka Trump’s clothing line, Nordstrom’s stock price looked like it was going to take a hit – and then it didn’t.
Since then, there appears to be less news relating Trump tweets to stock market dives. While it can sometimes appear that his habit of calling out individual entities has subsided, the one thing you can bet on is Donald Trump being unpredictable. Volatility is still the order of the day, so actively selecting or picking stocks is an investor’s best strategy to filter out winners and take advantage of this market uncertainty.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
To most of us, the concept of investment is most often associated with the idea of financial enrichment, but you should ideally also invest in yourself in less-tangible ways.
For one thing, you could divert some of your funds to travel – not just for bragging rights or trendy Instagram snaps, but rather, to broaden your horizons and give you perspective on your own situation.
By exploring unusual destinations, rather than typical holiday spots, you could derive more value and wealth of experience than if you went to where the crowds always flock.
Indulge in a the rich history, food and culture of a place that itself might not be very well-off. Learn to live in the moment, solve problems creatively (and cheaply) and ultimately, teach yourself to value experiences over material things.
With this in mind, you might also be interested in places that offer all these things, and offer economic opportunity, as well. Here are three countries which are experiencing good economic growth while offering unique mind-broadening experiences:
The Philippines
This collection of more than 7,000 islands is making news for its strong-willed president and his controversial statements. But you may not have heard that the Philippines is actually one of the fastest-growing economies, with the World Bank forecasting 6.9 per cent growth in 2017 and 2018.
But away from the hustle and bustle of the cities awaits a number of relaxing experiences, and not all of them are on beaches. For example, check out the surreal landscape of Chocolate Hills, or the gorgeous UNESCO-listed rice terraces of North Luzon dating back two millennia.
Ireland
Famous for Guinness Stout and an EU bailout in 2015, Ireland is often overlooked as a tourist destination in favour of its close neighbour, England. But what people who give it a miss probably don’t realise is that Ireland is prosperous once more, with a better-than-expected 5 per cent growth rate in 2016. Indeed, it is expected by some analysts to be the strongest economy in the EU in 2017.
Laden with history and lore, the Emerald Isle is a magical place with medieval castles aplenty and stunning landscapes for hikers to explore. Visit deserted sandy beaches, or enjoy the vibrant optimism of the capital, Dubln. Whichever way you do it, know that you are unlikely to encounter too many tourists from your home country.
India
Far too big and diverse to adequately describe with words, India is perhaps unfairly associated with chaotic cityscapes, robust cuisine and extreme weather. What is certain, however, is its enviable rate of economic growth, forecasted to be 7 per cent this year.
You don’t have to endure the bustle of India’s overpopulated and under-planned cities. Do a little research and you might discover a facet of India that suits your particular travelling style. Those hoping for a look at India’s spiritual (and occasionally shocking) side should explore Varanasi, while those longing to relive the opulent moghul lifestyle should visit Jaipur or Udaipur. But whatever the destination, you can be sure of an experience that might just change your outlook on life forever.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
If you know anything about cosmetics, you will likely be familiar with Sephora – the shopping mall staple is a popular one-stop destination for makeup, skincare and more. If you dive deeper into the wider beauty industry, though, you’ll discover a number of well-established retailers around the world that have endured for decades, even withstanding multiple economic downturns.
Why the beauty business survives recessions
Even when times are tough and recession bites, beauty businesses retain a strong customer base. For so many people, just because they’re pinching pennies doesn’t mean they are willing to give up looking and smelling good – spending on personal care products just simply stop. And, when the economy recovers, beauty businesses are likely to do even better and the sale of luxury beauty goods typically increases.
Meet the major players
The beauty and skincare market is packed with all kinds of businesses, from chains offering high-end products to low-cost stores with a huge assortment of goods. Sally Beauty, for instance, has grown from a one-store operation to a publicly-listed international chain with more than 2,800 locations worldwide. Currently, it’s earning praise for an innovative customer loyalty programme, investing in new stores and refurbishing old ones. Ulta, another publicly-listed chain, has over 900 stores in the United States. With a mix of generic products and luxury brands, it has recently enjoyed strong growth, billions of dollars in sales and a partnership with makeup giant Benefit.
Customers keep coming back
Businesses specialising in cosmetics and skincare have unique advantages other industries can’t match, including fierce brand loyalty that lessens the need to find new customers. Though shoppers choose many products based solely on price, chances are they won’t buy another brand’s shampoo or eyeliner just because it’s on sale – they won’t settle for anything less than their favourite. In addition, many personal care and cosmetic items are repurchased every month or so, making recurring revenue just another fact of the business.
Consider your next investment
Commodities, stocks and startups are likely to remain popular with investors, but it could be worth looking for recession-proof alternatives. Resilient, growing and armed with a dedicated legion of shoppers hungry for new products, the beauty industry has much to offer investors looking to diversify into exciting new areas.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
Just like on the silver screen, the biggest new games to hit the market in the past half year were new instalments of well-loved franchises, such as Resident Evil 7, Tekken 7, Final Fantasy XIV and The Legend of Zelda: Breath of the Wild.
But if the names of the games seem familiar, the profile of video game enthusiasts is changing – as are the devices they use. Gone are the days when the term ‘gamer’ referred exclusively to young people tapping furiously on a console or PC. For example, since the launch of Apple’s App Store and Google’s Android Market in 2008, mobile phone gaming has exploded and grown exponentially since, helped along by the advantage of accessibility across a broad range of devices, in particular Apple and Android mobile phones and tablets.
Newer still are innovative platforms like Nintendo’s Wii U and their newest Switch console, which combines the gameplay depth of traditional consoles with the portability of mobile tablets and phones, as well as motion-sensing interfaces beyond the usual button-tapping gameplay.
Don’t stop gaming
As the nature of devices and games change, so too does the industry itself. Gamers these days want more variety – not just in terms of platforms or new titles, but also of specialist hardware or even retro gaming systems. And one specialist retailer covering all possible bases in the gaming world today – especially in the United States – is GameStop.
With over 7,000 outlets across the US, GameStop provides pretty much anything a serious gamer or casual player could want, from new and used physical copies of video games, to accessories, consoles and collectibles. In addition to their brick-and-mortar stores, gamers can also go to GameStop’s online portal to pre-order the hotly-anticipated Sniper 3: Ghost Warrior, for example, or pick up a texture grip Recon Tech controller for the Xbox One.
Yes, the proliferation of online distribution of software on platforms like Steam has meant that GameStop faced some challenges in 2016. However, analysts say that the retailer’s attempts to restructure – by investing in new income streams like collectibles, for example – make it a tempting stock to buy.
Speaking of appealing buys, 2017 will see the release of a whole raft of hotly-anticipated games titles: The aforementioned Zelda: Breath of the Wind, available on Nintendo consoles, the latest epic fantasy adventure in this much-loved series, carries some of the highest expectations for gamers of a certain age. For those who prefer their games best-served on the Xbox One, PlayStation 4 or the PC, Mass Effect: Andromeda – the latest iteration of one of the greatest game series of all time – is sure to draw in old and new fans alike.
One thing is for certain: This year is set for some of the most exciting gaming challenges yet. And it’s time to give power to the players.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
India and China are the world’s two most populous countries and, until comparatively recently, were not the economic powerhouses they are today. Now, China has the world’s second largest economy after the USA, and India’s economy continues to go from strength to strength. Here, we take a look at some of the factors fuelling the staggering growth in India and China.
China had the world’s fastest-growing economy for 30 years, with an average growth rate of around 10 per cent until a slowdown in 2015 reduced the rate of expansion. This year, the growth rate is projected to be 6.8 per cent, which is still higher than much of the world’s developed economies.
India, on the other hand, went through years of economic stagnation, with much of the country witnessing the growth of a huge wealth gap. Today, though, India’s economy is now the fastest-growing economy in the world. In 2017, the finance ministry estimated that the rate of growth will be upwards of 7 per cent for the 2017-18 fiscal period.
Domestic powerhouse
For the last 25 years, India has been undergoing a process of economic liberalisation, which has attracted more companies to invest in the country. One of the results of this has been a huge movement of urbanisation. India currently has 69 megacities (population above 1 million) and some of the largest states expect to be urbanised by 50 to 60 per cent by 2030.
With urbanisation comes the need for greater infrastructure: Roads, trains and waterways. On one level, these infrastructure projects and rapid urbanisation are providing the domestic economic stimulus to boost gross domestic product. But, on the other hand, India’s rising middle class is also stimulating the economy and contributing to development. Furthermore, the country’s most successful companies grow by 25 to 30 per cent each year, which is reflective of the confidence in the economy.
China’s rise and rise
In China, the economy still continues to expand. Although the country is traditionally known for its manufacturing industries, there has been a move away from this to embrace a more high-quality, service-driven economy. And as with India, the country has seen rapid urbanisation, which has led to huge infrastructure projects that provide employment and stimulate the economy.
China has also committed to reducing pollution and achieving environmental stability, and fears about a trade war with the USA have also been allayed, leading to greater confidence overall.
For investors, sustained economic growth in China and India presents excellent opportunities to invest in funds containing Chinese and Indian companies. As each nation’s economy continues to get bigger and more developed, more and more funds will seek to include firms from each country, leading to diversified portfolios and exciting opportunities for long-term investment.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
Without a doubt, 2016 was a turbulent year for much of the world, both politically and economically. The election of a new United States president, the United Kingdom’s decision to leave the European Union, and the strengthening of the US dollar all had an impact on investors’ portfolios.
Now, with the very real possibility that 2017 could be as turbulent or worse, it might be timely for investors to consider rebalancing their portfolios in favour of more commodities.
Commodities are often described as the fifth asset class – after shares, bonds, properties and cash. They are tangible, raw primary products, such as natural materials, oil, precious metals and cereals, and the tend to be a popular choice for investors during times of economic and political uncertainty. With events in the US and Europe having global ripples – France is currently in the grip of a divisive presidential election, with Germany following suit in September – investors are seeking to diversify their portfolios so as to reduce risk.
One of the major benefits of investing in commodities is that they aren’t linked directly to the stock market or currencies. So, if equity markets were to fall, commodities wouldn’t necessarily decline at the same time. In Asia Pacific, the commodities market is poised for exciting growth throughout the year, and here are some of the reasons you should consider rebalancing your investment portfolio for 2017.
A surging market
Since the beginning of 2017, there has been an upward trend in the value of commodities in Asia Pacific. In China alone, industrial profits rose by 32 per cent in January and February, largely due to the faster growth of prices in steel, coal and crude oil. Much of this is due to high demand in China and India, with the state-owned China National Petroleum Corporation predicting that the country’s crude oil imports are likely to increase by 4.6 per cent during 2017.
But it isn’t just oil that’s experiencing a shift in prices. Globally, the price of copper soared after the US presidential election November 2016. Closer to home, it’s also predicted that palm oil prices will rise sharply throughout 2017, which will be of interest to investors in Singapore who want to diversify their portfolios.
Expert guidance
Speaking of Singapore, Olam International has 27 years of experience trading in commodities. Olam is a true Singapore success story. After suffering a loss due to turbulent markets in 2015, the company bounced back spectacularly to regain its position as a world-leading trader in agricultural commodities.
As with other analysts, Olam believe that the world’s economic outlook remains uncertain for the coming year, which is why it is vital to maintain a well-balanced portfolio to weather any storms.
With the agricultural commodities market looking attractive for the next 12 months, there’s a lot to get excited about.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
The summer holidays are nearly upon us, meaning families the world over are readying themselves for frenetic vacations to far-flung places.
For millions of people, this means a trip to a theme park – and if you happened to be travelling to North America, you would be spoiled for choice. With hundreds of amusement parks and the world’s most famous thrill rides, the United States is a mecca for anyone looking for a definitive rollercoaster ride.
In fact, according to official figures, just the top 20 theme parks alone welcomed some 146 million visitors in 2015 (the latest year of official recordkeeping by the Themed Entertainment Association). In all, an estimated 235 million people visited theme parks around the world. And sitting on top of the pile when it comes to name recognition – as well as outright visitor numbers – are the various Disney parks dotted around the world.
But true thrill ride aficionados will know of the Cedar Points, Carowinds and Knott’s Berry Farms of this world, where there is less emphasis on selling branded merchandise and more focus on the incredible rides themselves. For example, world-famous “gigacoasters” such as Top Thrill Dragster and Millennium Force at Cedar Point, and the Fury 325 at Carowinds – parks owned by Cedar Fair – are often found at the amusement parks not linked to larger media empires.
Indeed, there is something to be said about media companies who have diversified into theme parks: Sometimes, the stock value of the brand can be diluted by the weaker units of the empire. For example, the Universal Studios theme parks are more profitable than the movie and broadcast TV arms of its parent, NBCUniversal (itself owned by Comcast). By contrast, theme-park-only companies like Six Flags and Cedar Fair aren’t affected by declines in TV ratings or falling movie ticket sales, for example.
The business of rollercoasters
It is a good time for amusement parks – that aforementioned 146 million attendance figure represents a rise of nearly 6 per cent from the previous year.
In 2015, Six Flags saw a jump in share price of 16 per cent, while Cedar Fair – which owns Cedar Point, Carowinds and Knott’s Berry Farm, and many others – jumped 21 per cent. Some reasons for this good showing, say some analysts, are low prevailing oil prices and a strong US economy. Families don’t need to visit amusement parks, but when low gas prices leave them with extra discretionary spending power, a road trip to a giant theme park makes for a memorable family holiday.
What does the future hold?
The strong performance is likely to continue this year – the top two players Disney and Universal Studios are ploughing billions into parks in emerging markets like China and the United Arab Emirates.
In addition, besides overseas expansion, some theme parks are betting on the novelty value of augmented reality of virtual reality hardware. Earlier this year, Six Flags and Samsung unveiled a “mixed reality” rollercoaster that blends virtual images with real-world motion. While augmented reality rides are not new, the New Revolution Galactic Attack experience uses Samsung’s Gear VR headset with the passthrough camera turned on to allow thrillseekers to see the computer-generated content overlaid on the real world.
While it remains to be seen if augmented reality coasters like this will offer anything beyond novelty value in the long run, it’s a sign at least that theme park developers are looking to keep their fortunes going up, rather than plunging ironically downward like a rollercoaster.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
If the observers and experts quoted by the media are to be believed, the United States telecommunications industry is currently in a period of sustained growth. Illustrating this is the fact that, according to the Pew Research Center, 77 per cent of Americans use smartphones today – up from 35 per cent in 2011.
Another area of growth for the industry is wearable technology, which experts predict with boost the entire mobile ecosystem as a whole by making it easier for users to consume mobile data.
More importantly, some people are relying solely on mobile telecommunications companies rather than traditional Internet service providers (ISPs) for their connection to the Internet, via mobile data, even at home – indeed, a significant 12 per cent of US adults do not use broadband at home, Pew reports.
This bodes well for the four major US mobile phone carriers – Verizon, AT&T, T-Mobile, and Sprint. Given how is unlikely for customers would to cut back their mobile phone use in an age where data is king, the size of the telcos’ subscriber pool is assured.
Fewer operators = better for business?
A planned merger between the smaller two of the four major US telcos – namely, T-Mobile and Sprint – could be of benefit to the resulting trio of large firms. According to analysts, the result of this can already be predictd by looking north: In Canada, having just three carriers has been good for business, with the trio of Canadian firms having higher average revenue per customer than the four US telcos.
Experts say that, in the event a merger between T-Mobile and Sprint comes to pass, the pricing power of the three telcos which would exist post-merger would increase. Sprint, which is controlled by Japan’s SoftBank, could be merged with T-Mobile, controlled by Deutsche Telekom, after negotiations commence possibly in April 2017.
However, US anti-trust regulators could still halt any merger – although a new administration could be more open to such a move.
Great things yet to come
Going forward, the US mobile telecoms sector is probably only going to grow. In the near future, there will be more to look forward to in the form of ultra-fast 5G networks. The new technology brings data speeds of up to 200 times that of the current 4G networks – and this is likely to make people consume mobile data in unprecedented amounts.
With that in mind, it’s hard not to forecast a rosy future for US telcos – and who knows, the innovations their high-speed data networks would facilitate could very well change our lives once again.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
If you missed recent high-profile initial public offerings like Alibaba, Line, and Snap, don’t fret – the 2017 IPO market has been predicted to rebound from last year’s relatively lacklustre showing. To help you decide what IPOs to look forward to in the coming months, here are a few trends the markets might focus on in the second half of the year.
The sharing economy
With the fast-paced expansion and surging popularity of the sharing or ‘gig’ economy, companies like Uber and Airbnb have been growing exponentially, making this sector of the market arguably the hottest of the moment. And even though both Uber and Airbnb have seen their share of negative press in the past, investors remain optimistic. It’s not difficult to see why, with Uber in particular currently valued at US$69 billion according to some estimates.
Digital media
We are consuming less and less traditional television as the years go by, choosing to turn to new media such as online streaming services and social media to fulfil our entertainment needs. This trend has been exacerbated by the increased amount of time spent on mobile devices. As a result, digital media companies like Vice Media, Pinterest, and Spotify are primed to make their debut in the public market, to predicted success. Spotify is hoping for a valuation between US$11 billion and US$13 billion, while Vice is valued at over US$4 billion.
Productivity enhancers
We’re constantly looking to streamline, to make processes more efficient and our days more productive. It is therefore unsurprising that popular productivity apps such as Slack and Dropbox are churning out ever more features geared towards transforming the way we work. The commitment to innovation and keeping up with trends have accelerated the growth of their user bases, making them an investor’s dream. Slack is barely a few years old and said to be worth nearly US$4 billion, making its eventual IPO one to watch.
Looking east
Although the US had some of the most talked-about and highest-valued IPOs in 2017 so far, Asian markets saw robust activity too, so investors looking for opportunities would do well to explore that region.
According to Nikkei Asian Review, IPO deals in Asia made up roughly a third of the US$36-billion global IPO market from January to March 2017 – with Shanghai the top in Asia with US$4.72 billion in deals. New York saw bigger deals totalling US$9.56, but there were only 15 IPOs there in 1Q2017. Compare this to China, where there were 56 IPOs in Shanghai and 47 on the ChiNext board.
Some of the most anticipated IPOs in China this year include Kuaishou, a photo and video editing and sharing app with traffic exceeding the likes of WeChat and Weibo; and Lufax, China’s biggest peer-to-peer lending and wealth management platform.
But one much-anticipated IPO is Ant Financial, valued at US$60 billion-plus. Spun off from the popular Alipay remittance platform (which is now part of the wider Ant group of companies), Ant Financial provides online finance services including micro-lending to half a billion customers. However, according to the Financial Times, Ant still has no specific plans of when or where it will IPO – so watch this space.
Opinions expressed in the article are for reference only and do not represent that of the sponsor.
