Today almost all of the headlines are about Apple's iPhone launch and that is well deserved. I've been a iPhone user myself for 10 years and am excited for the new phone (but not the rumored $1000 price tag). Since the iPhone news will be covered by a million different sites, let's look at the other side of the globe where China is a very different market and one changing at breakneck pace. Did you know that last year, Chinese consumers spent $5.5 trillion (yes Trillion) through mobile payment platforms? To put that in perspective that's about 50 times more than their American counterparts where Apple pay just hasn't caught on. So why is China succeeding where Apple is not? Let's take a look at China's mobile payment market.
Fascinating internet trends that can’t be ignored
Every year, analyst Mary Meeker delivers her internet trends report and it is a must watch for all those interested in technology. Her report is 335 slides with tons of information.
Long-term Jobs Killer Is Not China, It’s Automation
About five years ago, I was traveling on business to Los Angeles. I was surprised to find kiosks at Alamo that processed my reservation, assigned my rental car, and directed me to the spot for pick up. As I drove out, I marveled, “Wow, I was in and out of there without talking to single person!” Today, this once novel concept is quickly becoming common place.
China’s JD.com at the forefront of drone delivery
While many of us in America look to Silicon Valley for innovation, perhaps we need to look even further west as China's e-commerce giant JD.com is leading the way in drone delivery. The company has already delivered packages via drone and last month announced plans to build 150 drone launch facilities for unmanned aerial vehicle delivery (UAV) parcel delivery. They have already secured government approval (which Amazon has had trouble with in the US) in select provinces in China to make deliveries.
Why do I prefer Service Sector investing? Because Santa says so.
‘Tis the season. Yesterday, I read this WSJ article Consumer Keeping Growth Afloat. It's not surprising at this time of year where the lion share of retailers' fortunes are made that we are reminded that 70% of spending in the USA is consumer-based. Yet, we also read about a manufacturing slump. This got me to thinking about Santa and the Elves.
US Service Sector growth slows in October
The US service sector slowed more than expected in October, marking the second straight month of slower growth and its lowest level since June. However employment hit a new nine-year high. The survey showed the key service sector, which accounts for roughly two-thirds of US GDP, remained solidly in growth mode.
The Institute for Supply Management (ISM) reported that its service index fell to 57.1 from 58.6 in September. This was slightly below economists' forecasts of 58. This marks the 57th consecutive month of growth. A reading above 50 indicates the sector is expanding.