📈 World's Biggest Bank Trading with a USB Stick
Plus: Understanding China's Troubled Economy
Investing Journal
November 10, 2023
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First up, the worlds biggest bank, ICBC is trading via a USB stick after a cyber attack forced them offline yesterday 😵💫, and if you’re looking for a new job, one AI tool will make applications for you whilst you sleep. 💤
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Markets
Cyber Attack Forces World’s Biggest Bank to Trade via USB Stick (4 minute read)
On Thursday, the world's largest bank, Industrial & Commercial Bank of China’s U.S. unit, experienced a cyberattack that impeded its ability to clear significant volumes of U.S. Treasury trades. The attack, attributed to the suspected perpetrator Lockbit—a criminal group with ties to Russia—prompted a rapid response.
In response, ICBC had to resort to a workaround to share settlement details by physically delivering a USB stick to the involved parties, as the state-owned bank worked swiftly to contain the damage. This incident caused immediate disruption in the market, compelling market-makers, brokerages, and banks to reroute trades, with uncertainty prevailing regarding when normal access would be restored.
Expanded BRICS Unlikely To Challenge The Petrodollar Soon (4 minute read)
Some analysts state that the process of de-dollarization is gaining momentum, as the BRICS group, consisting of major emerging economies like Brazil, Russia, India, China, and South Africa, extended invitations to additional countries earlier this year. Notably, oil powerhouses such as Saudi Arabia, the United Arab Emirates (UAE), and Iran are among those considered for inclusion, potentially uniting some of the largest oil exporters with the world's top two crude oil importers, China and India.
While the prospect of an expanded BRICS+ alliance, including nations like Argentina, Egypt, and Ethiopia, holds the promise of increased global political influence, the likelihood of a BRICS currency dethroning the U.S. dollar's dominance in oil trade remains uncertain for a number of reasons.
Understanding China's Troubled Economy in Five Charts (3 minute read)
China faces a multitude of challenges on economic, social, and geopolitical fronts, creating a complex landscape that can be difficult to navigate. As the world's second-largest economy and the largest exporter, with a population of 1.4 billion people, China holds a pivotal role in the global economy and serves as the top trading partner for 120 countries.
A significant concern is the prolonged downturn in the property market, stemming from a debt-fueled overbuilding of real estate, notably exemplified by the default of Evergrande, formerly the second-largest real estate company in China, in late 2021. Given that the property industry traditionally contributed up to 30% of China's GDP, the real estate market's health has profound implications for the overall economic well-being of China.
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Investing
Nvidia plans to release three new chips for China (2 minute read)
In response to recent U.S. restrictions on selling high-end AI chips to China, Nvidia is set to launch new artificial intelligence chips specifically tailored for the Chinese market. The upcoming chips, named HGX H20, L20 PCIe, and L2 PCIe, are anticipated to be announced as early as November 16, according to chip industry newsletter SemiAnalysis.
While these chips incorporate many of Nvidia's latest AI features, some computing power measures have been adjusted to adhere to the new U.S. regulations. This move follows Nvidia's acknowledgment that the updated export restrictions would prevent the sale of two modified advanced AI chips, the A800 and H800, designed for the Chinese market in compliance with previous export rules.
Nvidia's shares saw a 3.3% increase yesterday following this development.
This Car Stock Has Soared 50%—and It Can Keep Flying (3 minute read)
One person's discarded vehicle becomes another's prized possession at Copart, the world's largest auctioneer of salvaged vehicles, and its stock reflects its lucrative business. Copart (CPRT) specializes in trading salvaged cars, ranging from wrecks valuable for parts to nearly flawless vehicles deemed economically unviable for repair but legal to drive overseas.
The company facilitates the sale of these vehicles from insurance companies seeking to recover payouts, taking a fee based on the sale price. With a steady and consistently growing business model, Copart's stock has surged over 50% this year, propelled by a series of positive earnings reports, highlighting the success of its unique niche in the market.
Money
Many Couples Do Not Coordinate 401(k) Matches (2 minute read)
Consider a scenario where a married couple, both earning equal incomes, faces differing 401(k) matching scenarios from their employers—one spouse receives a full dollar-for-dollar match, while the other gets only a 50 percent match.
In a simplified version of the complex financial decisions couples encounter, a new study reveals that one in four couples fails to prioritize the more generous employer's 401(k) matching funds.
The study suggests that this lack of coordination could have a tangible cost, with the average couple potentially forfeiting nearly $700 annually by not optimizing their contributions to the more favorable 401(k) plan.
🐥 Best of Twitter
JUST IN: 🇺🇸 FED Chair Jerome Powell says "just close the f*cking door" after climate protestors interrupt his speech.
— Watcher.Guru (@WatcherGuru)
Nov 9, 2023
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