📈 Tech Giants caught between US & China tensions

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UBS Group has named Sergio Ermotti as CEO to oversee its acquisition of Credit Suisse, which is expected to take place in the coming months. Concerns over financial contagion and the necessary policy responses have arisen as some US banks have experienced a loss of confidence.

Alibaba has announced a major restructuring, dividing into six business groups to keep the company adaptable in an ever-changing environment. Apple CEO Tim Cook recently traveled to China for the first time since the pandemic began, attending a business conference hosted by the Chinese government. His trip highlights the delicate balance that tech executives like Cook must maintain, emphasizing Apple's strong relationship with the country.

Markets

Sergio Ermotti returns as UBS CEO to steer Credit Suisse takeover (2 minute read)
UBS Group AG has appointed Sergio Ermotti as CEO to oversee its takeover of Credit Suisse. The decision to replace current CEO Ralph Hamers after just three years was driven by UBS Chairman Colm Kelleher, who believed that Ermotti was best equipped to navigate the challenges of the deal. Ermotti, a seasoned corporate problem solver, faces the daunting task of downsizing staff, scaling back Credit Suisse's investment bank, and maintaining UBS's reputation as a reliable haven for the world's wealthy.

What Happens in the Banking Sector Won’t Stay There (3 minute read)
The recent loss of confidence in some US banks has got people worried about financial contagion and the necessary policy responses. But there's another contagion channel at play here that's not getting as much attention - the one involving economic growth enablers. This channel may not be as speedy, but it's still crucial in determining how quickly the world's largest economy bounces back from this sudden air pocket. At the heart of banking lies trust, and once that's eroded, things can spiral out of control faster than you can say "subprime mortgage crisis." We've seen some banks like Silicon Valley Bank and Credit Suisse come crashing down recently, which has made depositors wary. As a result, they've been pulling their money out of smaller banks and investing in the big boys deemed too big to fail, money market funds, and even Bitcoin.

Alibaba splits into six in biggest overhaul in 24 years (3 minute read)
Alibaba has announced a major restructuring aimed at keeping the company adaptable in an ever-changing environment. The e-commerce giant revealed on Tuesday that it will divide into six business groups, each with its own CEO and following a holding company structure. The new structure will hold the CEOs responsible for the performance of their respective business groups, reporting to a board of directors. The move is being described by Alibaba as the "most significant governance overhaul in the platform company’s 24-year history." The announcement came just a day after the reappearance of Jack Ma, the billionaire founder of Alibaba and Ant Group, who had been out of the public eye for months.

Investing

Tech giants caught between escalating U.S.-China tensions (2 minute read)
Apple CEO Tim Cook traveled to China for the first time since the pandemic began, attending a business conference hosted by the Chinese government where he emphasized Apple's strong relationship with the country. This trip highlights the delicate balance that tech executives like Cook must maintain between pleasing their home country and the foreign markets they rely on, especially in the wake of a recent grilling of TikTok's CEO by U.S. lawmakers. Cook's speech at the conference praised the mutually beneficial partnership between Apple and China, which has been critical to the production of the company's hardware products. However, the pandemic has prompted Apple to rethink its supply chain strategy to ensure it is more diversified.

Why the Stock Market Makes You Feel Bad All the Time (3 minute read)
Did you know that the last time the S&P 500 hit an all-time high was way back on January 3, 2022? That's almost 450 days ago! It feels like forever, doesn't it? But when you look at the history of bear markets, it's actually not that long of a time. So if we use history as a guide, it might be a while until we see new highs again. The thing is, the more often you check your stock market investments, the more it's going to mess with your head. It's called "myopic loss aversion," which is basically when losses feel twice as bad as gains feel good. And the more you check your portfolio, the more likely you are to feel that sting of loss aversion.

Money

Apple Pay Later launches (2 minute read)
pple has finally launched its "buy now, pay later" service in the US, and it's a game-changer. Apple Pay Later allows users to split purchases into four equal payments, with no interest and no fees. Users can apply for loans ranging from $50 to $1000, which can be used for online and in-app purchases made on iPhone and iPad with merchants that accept Apple Pay. Repayments are spread over six weeks, and users can track and manage their loans in one location in Apple Wallet. There's no impact on the user's credit score with a soft credit pull done during the application process.

How to Build Generational Wealth [All You Need to Know] (10 minute read)
Building wealth is no easy feat, but building generational wealth can be an even greater challenge. Generational wealth is the accumulation of assets and resources that can be passed down to future generations. It can come in various forms, including cash, trusts, businesses, and other valuable possessions. For many, generational wealth represents success and provides financial security and access to opportunities for future heirs. It can also serve as a way to leave a lasting legacy for future generations. However, while generational wealth has its advantages, it also has its drawbacks. It can demotivate future heirs, create family conflicts, and perpetuate inequalities. It's a complex issue that requires careful consideration and planning.

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