Business

Chinese Create a Gold Rush as Property Prices Crash in China

Published

7 months ago

March 10, 2024

Bchcomber

Chinese Create a Gold Rush as Property Prices Crash in China

Chinese people have started a gold rush as property crashes. Sales of gold, silver, and jewellery have been brisk for months, defying wobbles in the Chinese economy centred around the protracted crisis in the property market.

After months of stagnation, the gold market sprung to life on March 1. Prices broke the December record on Tuesday and have been rising steadily since then. On Friday, spot gold in New York rose to a fresh high of $2,185.19 per ounce.

The rally was unusual: gold typically rises in response to world-changing geopolitical or economic events, and nothing particularly important had occurred to warrant the jump. The sudden rise has left many experts and other market watchers looking for explanations, ranging from huge investment funds renewing their interest in gold to the influence of algorithmic traders following market trends, fueling volatility.

However, prices didn’t have far to go before reaching record levels. Gold has been trading for months around $2,000, a number that would have been considered astronomical just a few years ago and was only broken for the first time in 2020 as the global epidemic raged.

Even more surprisingly, prices have remained high despite sky-high real interest rates, which are traditionally detrimental to gold, which does not pay interest.

chinese gold

While many Western investors sold gold as interest rates rose last year, worldwide demand was supported by significant purchases by central banks in emerging market countries, led by China.

Regular people are also buying – despite the high prices, Chinese consumers stockpile coins, bars, and jewellery to protect their wealth against volatility in the country’s stock market and property industry.

“Western investors have not driven the gold market,” said Bernard Dahdah, a commodity analyst at Natixis. “China, so far this year and through last year, has been the engine behind gold prices — but not necessarily behind this spike.”

While Chinese and other developing market buying helped set this week’s milestones, the focus has shifted to investors and their predictions about when the Fed will begin decreasing interest rates.

The initial increase on March 1 followed weak US industrial statistics and a decline in consumer mood, which looked to support the case for reduction. Fed Chairman Jerome Powell’s comments emphasizing the probability of a cut this year fueled additional gains, helping to boost prices to new highs.

Fresh data from the Commodity Futures Trading Commission on Friday indicated that money managers were buying aggressively during the week through March 5 — when gold broke its previous high.

gold china

However, bullion has a long way to go before reaching its inflation-adjusted peak. Gold has increased by more than 600% since the start of the millennium, but adjusted for inflation, it remains below the peak of $850 reached in January 1980, which is equivalent to more than $3,000 in today’s currency.

This week’s high bears some similarities to that peak 44 years ago. Bullion’s value more than doubled in 1979, as the toppling of Iran’s Shah and the Soviet invasion of Afghanistan underlined the precious metal’s importance as a haven asset. This year, Iran-backed Houthi attacks on Red Sea ships have raised geopolitical concerns, as has Russia’s ongoing conflict in Ukraine.

“The sabre-rattling from Putin, the conflict in Ukraine and Gaza, all of that adds to the background noise,” said Adrian Ash, director of research at BullionVault. “The mood music is bullish for gold now from the safe-haven perspective.”

However, recent gains have been very modest compared to previous record-setting rallies. This is due, in part, to central banks’ efforts to diversify their reserves away from reliance on the US currency.

Central bank demand “puts a buffer on gold,” said Max Belmont, portfolio manager for the First Eagle Gold Fund, which had $2.3 billion in assets under management at the end of 2023. “And it’s not the western central banks that are accumulating, it’s the eastern,” he said, with China projected to be the major buyer by 2023.

If Chinese purchases have been a gold market pillar, Fed policy will likely remain the primary market mover. Signs of a shift toward lower interest rates have underpinned gold since mid-February, with traders currently pricing in a 67% chance of a rate decrease in June. Lower borrowing costs generally benefit gold, which pays no interest to its holder.

In the short run, some investors may choose to cash in on recent profits, putting pressure on prices, according to Ash.

However, the broader backdrop suggests the rally may have further to go. Despite the obvious similarities between the recent record-breaking run and other gold peaks, the participation of central banks and Asian buying distinguishes it.

“The current market behavior, characterized by daily record highs, is unprecedented in my experience,” said Alexander Zumpfe, senior trader of the German gold refiner Heraeus Group. “This uniqueness underscores the complexity of the current market dynamics and the variety of factors influencing gold prices.”

Source: Bloomberg

Despite Gold’s Highs, Wall Street Thinks It Has Further To Go

Despite Gold’s Highs, Wall Street Thinks It Has Further To Go

Business

Based on interest from The Range, Homebase’s owner plans to initiate a sale.

Published

2 months ago

July 20, 2024

Salman

(CTN News) – Homebase’s proprietor is currently in discussions with one of the most prominent general goods chains in the United Kingdom regarding the possibility of selling the do-it-yourself retailer.

These discussions are occurring in anticipation of the commencement of a more comprehensive auction of the company that it salvaged six years ago.

The Range, which has discreetly become one of the most successful retail businesses in the country, has extended an offer to Hilco Capital, the company that acquired Homebase in 2018.

The company was experiencing financial difficulties at the time of acquisition. The offer is being discussed as a potential acquisition. This information was reported by Sky News. Sky News acquired this information.

The city sources asserted that the negotiations were not guaranteed to result in a transaction; however, analysts predicted that The Range would likely demand the majority of Homebase’s approximately 140 stores if an agreement were reached. The headquarters of Homebase are located in the United Kingdom.

It is anticipated that a formal selling procedure, which will involve other potential suitors, will commence in the near future, according to an individual who is knowledgeable about the matter. The individual who disclosed this information provided it.

Homebase was controlled by Wesfarmers for a period of time.

An Australian company, the company experienced losses that totaled hundreds of millions of British pounds. Homebase was acquired by Hilco subsequent to the conclusion of this period.

B&M European Value Retail, a discount retailer that is listed on the London stock exchange, is one of the other retailers that have been considered as potential proposals for Homebase in the past. Another company that has been mentioned is Homebase.

The Do-It-Yourself (DIY) chain, which has been nomadic, has been acquired by Home Retail Group, a joint venture between Argos and Home Retail Group. J. Sainsbury managed the chain at various points in time, and it was subsequently acquired by Home Retail Group.

Hilco, a corporation that has previously owned retail brands such as HMV and Cath Kidston, acquired control of the business as a consequence of Wesfarmers’ entry into the United Kingdom. This event was a complete and absolute disaster. Hilco succeeded in acquiring authority of the organization.

Homebase underwent a business voluntary arrangement in 2018, which resulted in the closure of a significant number of stores, the renegotiation of rent agreements, and the loss of approximately 1500 employment. Concurrently, each of these incidents transpired.

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The outbreak and the crises that accompanied it injured the company’s fortunes in terms of the cost of living, despite the fact that the turnaround investor was successful in stabilizing the company.

The initial increase in sales that transpired subsequent to the COVID-19 pandemic was attributable to the fact that consumers were prioritizing home renovation initiatives. Conversely, the market conditions ultimately manifested with increased volatility.

Homebase lost forty million pounds in 2022, according to Companies House.

Conversely, there is a general agreement that the performance of the previous year was significantly better.

Homebase has a presence in Ireland in addition to its operations in the United Kingdom. Nevertheless, it is conceivable that the two divisions could be sold separately at a later date.

Chris Dawson, one of the most successful businesspeople in the world, is the owner and operator of CDS Superstores, which incorporates The Range as a subsidiary. The Range is situated in Devon.

The business paid a sum of seven million pounds to acquire the brand and intellectual property assets of Wilko, which had been placed under administration.

Mr. Dawson has since established numerous Wilko establishments in a variety of locations throughout the region.

The Range, a retailer with over 200 retail locations in the United Kingdom, offers a diverse selection of products, such as homewares, furnishings, and items for do-it-yourself projects.

Mr. Dawson established its inaugural store in Plymouth in 1989.

Due to the distinctive number plate that is prominently displayed on his Rolls-Royce Wraith, he is frequently referred to as “the Del Boy billionaire.” He has become one of the most successful retail business proprietors in the United Kingdom as a result of his unwavering determination and hard work.

Despite an attempt to obtain a statement from Hilco and Homebase, The Range has been unable to be contacted for any further information.

SOURCE: SN

Business

The National Lottery App is down. Users say they have Login Problems.

Published

2 months ago

July 20, 2024

Salman

(CTN News) – A substantial number of individuals from all over the United Kingdom have reported issues with the National Lottery’s mobile app and website. A sizeable number of individuals have brought these issues to the attention of the authorities.

It is clear that a significant number of individuals have reported experiencing difficulties accessing the application, as evidenced by the fact that over one thousand five hundred complaints were registered at roughly 6:30 this morning.

There was a second surge in the amount of complaints that were received at approximately eleven o’clock last night. Downdetector UK received approximately two thousand reports of outages during this time period.

For the second time in a row, National Lottery complaints were up.

It was as a result of an increase in the percentage of complaints that were received that this phenomenon came about. The application is responsible for National Lottery around 53 percent of the disturbances that have been observed, as indicated by the conclusions of the inquiry.

On the other hand, the website and the login were connected to respectively 41% and 6% of the disruptions that occurred.

Glasgow, Manchester, and London were selected as the regions that were experiencing the most major challenges. This was the case despite the fact that a number of problems were recorded in each and every location in the United Kingdom.

The National Lottery’s mobile application and website have been the subject of a number of complaints from users who have said that they have been unable to successfully log in to either of these platforms.

The National Lottery attracted many people to X.

It was once known as Twitter, where they broadcast complaints and expressed their displeasure with the apparent outage. Their actions were intended to convey their dissatisfaction with the current situation. The following comment was provided by a certain individual:

“Come on, @TNLUK, your app and website have been down since last night at nine o’clock.” These issues have been ongoing for a considerable period of time. Even if one considers how long it has been since the dispute began, it is absurd that it has not been resolved.

I was wondering if anyone has been able to access the website of the national lottery or use the app since the clock struck nine o’clock yesterday evening.

Should that be the case, to what extent has this been feasible? The inquiry was initially posed by a different individual than the one who was being asked.

Would it be more likely for the problem to be resolved in time for today’s draw, or will it take more time to be resolved? What is the likelihood of each of the following occurring? Please select one of the following two options. “@TNLUK”

Apparently, the National Lottery app is exhibiting peculiar behavior of its own accord, as stated by a third user who reported the matter.

There is a significant probability that the anarchy that has been brought about by the current state of information technology is the party responsible for this. This is a possibility that cannot be discounted.

According to the official National Lottery account.

The following comment was provided in response to someone who inquired about the matter: “Hello. It has come to our attention that a sizeable number of players are encountering challenges while attempting to access both our website and our mobile application.

It was brought to our attention by a member of our staff that this information is available. At this very moment, the members of our team are conducting an inquiry into the matter in order to ascertain what has transpired. We would like to take this opportunity to apologize for any inconvenience that this may have caused.

The fact that they are conducting an investigation into the matter is something that you should be aware of.

SPURCE: BCSE

Business

Amazon Prime Day Bargains are Approaching. Is it Advisable to Capitalize on Them?

Published

2 months ago

July 15, 2024

Salman

(CTN News) – Since Amazon introduced Prime Day in 2015, July sales have been enormous for businesses. Even with fantastic prices, personal finance experts advise against deceptive advertising and buying unnecessary items.

In recent weeks, people have been growing more enthusiastic about the 10th Prime Day event, which will take place on Tuesday and Wednesday for Prime members who pay $14.99 a month or $139 a year for free shipping and other benefits.

Other stores have capitalized on Prime Day with offers. This summer, Walmart, Target, Kohl’s, TikTok Shop, and Temu started sales before Amazon.

This was done to steal from Amazon deal-seekers.

There will be “best summer deals” at Macy’s from Tuesday to August 8. Why do businesses sell so much during the summer?

July offers aid August back-to-school buying, the second busiest season after the holidays. Electronics, home products, and seasonal items like bikinis and summer dresses cost more when costs are low.

Sales could help businesses battle “a summer lull in retail spending” because people are spending money on holidays and eating out, according to Coresight Research’s head of global research, John Mercer.

Mercer says “it drives a bit of excitement in that mid-year period,” when companies may be struggling to sell. He claimed that businesses utilized sales to increase spending during high interest rates and inflation.

Amazon doesn’t disclose Prime Day earnings, but it has proof. Last year’s “single largest sales day” sold almost 375 million products.

Amazon Prime Day sales might reach $12.5 billion worldwide in 2023, according to Emarketer. The company expects 7% sales growth this year.

What’s the pricing offer?

Change who you ask. It is common for store advertisements to use hyperbole in order to attract customers. Earlier this month, Wirecutter wrote that most of Amazon’s early discounts this year are disappointing.

Santa Clara University management professor and Amazon book author Kirthi Kalyanam says Prime Day offers are good. Halyanam said Amandon promoted small businesses on its website to acquire Apple discounts and cut their costs. People are used to Temu and Shein’s low prices, so Prime Day deals may not matter.

Kalyanam stated that “many of the deals may not be as competitive” as Temu and Shien’s.

Other stores may immediately try to match Amazon’s prices, he added. He said Best Buy dropped two goods when Amazon revealed early deals last week.

Numerator questioned 5,000 customers after Prime Day last year and found 40% discounts on some items. Survey responders discovered 60% or greater discounts on 25% of items.

Some retail workers stated Prime offers were smaller than they appeared.

Is there a way to budget and locate Amazon deals?

Personal finance gurus advise caution before buying if you’re on a budget. LendingClub customer support manager Mark Elliot advises, “Avoid the false sense of urgency of manufactured holidays.” “It’s simply not true by definition to say that the more you spend, the more you save.”

Dan Egan, VP of Betterment, a financial advice and investing business, advises users to list their wants beforehand to make good selections. He advises against late-night or bored shopping.

“Having a list makes it less likely that you’ll be sidetracked by unnecessary items,” he said. I recommend removing shop apps from your phone for a week or two if the list is practically empty. You’ll get several alerts otherwise.

He warned credit card holders that summer sales savings may be wasted on interest payments. “If a deal requires interest, it’s not a deal,” stated.

According to Consumer Federation of America head of consumer protection Erin Witte, summer offers are best with free or short-term memberships. After a while, these programs charge customers’ credit cards.

To cancel your membership, Witte advised setting a reminder.Think about it now. Remember that these companies made signing up for this product easy but canceling difficult.

Install the Amazon app, sign up for invitation-only offers, and wait in line for limited-time, sold-out deals.

Price comparisons matter.

Prime members who pay for Prime Day discounts may buy more. Before buying, compare costs on many websites.

Walmart’s price event this month was open to everyone, unlike Prime Day. Allowing Walmart+ users to sign up early improved the deal.

Target Circle, a new membership program, was promoted over the weeklong event to boost sales and foot traffic. However, only Target Circle members might get deals.

TikTok Shop’s summer sale was available to anyone. Celebrations continue till July 9.

Source: APN