The European debt crisis,the failure of the U.S. to come to an agreement regarding its debt ceiling and reign in its own national debt continue to cause cautious investors to invest in gold. The Wall Street Journal reports that gold reached $1600 per ounce on Monday. Additionally the amount held in exchange traded funds reached an all time high according to Barclay's Capital. The Financial Times indicates that India and China are the biggest gold investors and currently own 58% of the gold supply worldwide.
European stocks are rising on Tuesday
The Wall Street Journal reports that European stocks are rising on Tuesday but experts at Lloyd's of London predict that the rally will be short-lived as talks regarding the Greek bailout hit a critical moment this week.
Currency investors pulling out of the big three
Currency investors are pulling out of investment in the U.S. dollar, the Japanese yen and the Euro and are placing their investments into emerging currencies. Emerging market debt funds, mutual funds that allow for exposure to sovereign currencies and debt, have doubled recently increasing assets by $50 billion in the past year, as reported by the Wall Street Journal.
GM to invest in next model of pick-up truck
GM has announced it will spend $328 million to upgrade factories in Flint, MI, according to the USA Today. The upgrade will be to support the 2013 model of pick-up trucks that will be more fuel efficiency without detracting from any of the desirable features. Currently the plant employs 2,047 workers and the upgrades anticipate 150 new jobs. The upgrade is part of a promise to spend $2 billion in 8 states over 18 months.
HSBC warning clients of tax challenges
HSBC is actively warning Indian-American clients that it is better to disclose accounts under the current IRS voluntary program than to face potential penalties in the future, according to the USA Today. The IRS is currently focused on HSBC and Credit Suisse who are believed to hold many offshore accounts for Americans. This effort by the IRS is in reaction to their recent settlement with UBS for $780 million.
China's online population grows
At the end of June China reported that it had 485 million individuals online. A large portion of its online audience, according to the Associated Press and the China Internet Network Information Center, is mobile phone users. Mobile phone users represent 68% of the total or approximately 318 million individuals. These mobile phone users have increased 14.8% since 2010. Economic growth in China is predicted to be 9.3% in 2011, according to the World Bank.
FaceBook ad prices soar
Another online growth phenomenon is the ad space at FaceBook in which prices have increased more than 74% in recent months. According to the Financial Times, FaceBook is attracting additional advertising in recent months due to its increased popularity. Large brands are beginning to divert traditional media dollars to this channel. As FaceBook begins to position itself to go public (predicted to be in the Spring of 2012) it has created a new client council to advise on how to effectively reach its audience.