And 3 of the top stories of this week are:
1) China Retakes Top Spot as the Biggest Foreign Owner of U.S. Debt!
If you didn’t know, Japan stood at the top of the world as the largest owner of U.S. Debt, even larger than China!
However just a month later, China retook the lead as China accumulated more of, as The Wall Street Journal calls it – Uncle Sam’s bonds and notes.
2) Hon Hai Enjoys Big Demand In iPhone Bump
Hon Hai Precision Industry Co., Apple Inc’s major assembler rode on the back of strong iPhone demand (Apple allegedly contributed to about half of their revenue!) to post a 55% net income increase in its first quarter results compared to the same quarter a year ago.
For those that might not be aware, Hon Hai (Taiwan’s second largest company by market capitalization) is the largest member of billionaire Terry Gou’s Foxconn Technology Group. Bloomberg reported that key reasons for this bumper growth was due to improved production yields and lower costs. And this record growth was done in the seasonally low first quarter period.
Another plus for shareholders was the Board’s decision to increase the cash dividend to a record. Just for perspective, Hon Hai has over $20 billion in cash!
3) Alibaba Sued In U.S. By Luxury Brands Over Counterfeit Goods
A group of luxury goods makers sued Alibaba Group Holding Ltd with the reason that the Chinese online shopping giant had knowingly made it possible for counterfeiters to sell their products throughout the world.
And this group of luxury goods makers was none other than one of the luxury goods giant – Kering Group with brands like Gucci, Yves Saint Laurent and other brands under their umbrella!
An example of how this affected Gucci was as follows:
“The lawsuit cited, for example, an alleged fake Gucci bag offered for $2 to $5 each by a Chinese merchant to buyers seeking at least 2,000 units. The authentic Gucci bag retails for $795, the complaint said.” Stating that the price difference was different was quite an understatement!
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