Analysis Determines Scope of Largest Cities to Impact Global Economy
A new study by the Brookings Institution has identified 100 metropolitan across the world which accounts for 20% of the global economy, worth $22 trillion in 2014. of the 100 centers, 49 are in China, 19 in Japan, South Korea and Taiwan, 12 in North America, 7 in Southeast Asia, 7 in Latin America and 6 in Australia/New Zealand. As large regions of Asia continue to urbanize and industrialize, major metro economies will play a significant role in trade and investments. Of all the cities listed, Chinese cities saw the fastest per-capita GDP growth.
Hong Kong Experiences Fall of Chinese Stocks
The Hang Seng broad index of Hong Kong fell 3.2% on Monday, as the Hang Seng 100-large-mainland-companies index dropped 3.7%. While the Chinese government has intervened to ease the slide in mainland China, tighter restrictions and corporate governance rules have prevented such actions to be taken in Hong Kong. As such, foreign investors have been selling their HK shares in response to mainland China's market developments. There is the suggestion that foreign investors believe the Chinese government has intervened too much; so far, 21 mainland brokerage firms have set up a $19.4 billion fund to buy the larger companies' shares. This support is reflected in a noticeable rally for large-company firms in Shanghai and Shenzhen. The CSI 300 index of large-caps gained 2.9% at closing.
Oil Futures at 3-Month Low
August 2015 crude prices fell $4.40 (7.7%) to $52.53 per barrel on NYMEX (New York Mercantile Exchange), signaling the largest drop since April 13. Possible causes point to the latest news in Greek (where the referendum concluded in a "No" response to accepting current bailout terms) and possibility that a nuclear deal with Iran could lead to an increase in oil supplies. Analysts also point to the recent fall of Chinese equities that may suggest a weaker demand for oil.
Warren Buffett Continues Summer Trend of Donations
Warren Buffett has once again announced he will be donating a portion of his wealth to charity. This summer, the amount is over $2.8 billion, which comes from 20.64 million Berkshire Hathaway class b shares. The stock closed at $137.39 per share on Thursday, totaling $2.84 billion. The major recipients - as has been the case for a decade - is the Bill and Melinda Gates Foundation and the foundations of Buffett's family members. Following this summer's donation, Buffett's worth decreases to $64.5 billion. In the previous two summers, Buffett donated amounts of $2.6 billion and $2.8 billion, as he pledged to give away 99% of his wealth during his lifetime.
Sources:
http://www.bloomberg.com/news/articles/2015-07-06/the-cities-that-make-up-the-biggest-economy-on-earth
http://www.forbes.com/sites/alexmorrell/2015/07/06/warren-buffett-unleashes-another-2-8-billion-donation/
http://www.marketwatch.com/story/oil-tumbles-4-after-greek-voters-reject-creditors-reform-proposal-2015-07-06
http://www.nytimes.com/2015/07/07/business/international/chinese-share-sell-off-spills-over-to-hong-kong.html
