Wondering if you are up to speed with topics that are likely to pop up at your upcoming dinner meet? Here is an overview of what’s trending in economy and finance this week:
When someone talks about Facebook tell them why it’s share dropped by 7% this week:
On Monday, Facebook shares fell by 7% (the lowest drop in the last 4 years), wiping out almost $36.7 billion from the company’s market value. The drop comes after speculations that Cambridge Analytica, a consultancy that worked on President Donald Trump’s election campaign used personal details from 50 million Facebook profiles to influence the U.S. Presidential Elections. British authorities also suspect that a similar data breach was used to influence citizens’ decision during the Brexit referendum.
Check out what drives stock markets up and down!
When someone talks about a drop in Snapchat’s share price, blame it on the stars:
Last month, Kylie Jenner’s disappointed tweet over Snapchat’s new update, brought down Snapchat’s share price by at least 6%, wiping out $1 billion from the company, in just one day. This month, Rihanna’s story on Instagram against Snapchat’s offensive advertisement, cost the company’s share price to fall by 5% leading to losses worth $800 million.
Anticipating these situations a group of short sellers (traders that bet on a stock decline) made millions of dollars in a day.
P.S. Want to understand short sellers watch The Big Short
When someone talks about U.S. interest rates, tell them they’ve been hiked up once again:
When someone speaks about the ‘Transition deal’ in Brexit, tell them it has pissed off the fishing industry:
After the official Brexit date that is 29th March 2019, both the parties, U.K. and EU need some time for their businesses and citizens to prepare for the new rules. That’s why they both have mutually decided to have a ‘transition period ‘post Brexit lasting till 31st December 2020 for everyone to adjust. Here are few of the key terms agreed upon for this period.
#1. Free movement of people between the U.K. and the EU will continue like before till this period ends.
#2. The U.K. will still be a part of existing trade deals with the EU.
#3. Meanwhile, the U.K. can negotiate, strike and sign its own trade deals with EU countries (but they will only come into force after this period ends).
#4. To avoid a hard border between Northern Ireland and the Republic of Ireland, Northern Ireland will remain in the European Single Market & Customs Union.
#5. Currently, the U.K. fishing industry is under the EU Common Fisheries Policy which dictates how much and where they can fish and post-Brexit, they are supposed to get full control over these fishing waters. But, according to this transition period agreement the U.K. fishing industry will continue to remain under this policy till the period ends. As a result, the British fishing industry is really pissed off!
When someone talks about a trade war, here’s what they mean:
Remember as kids when you weren’t called to a friend’s party you’d not call that friend for your birthday too? In short something like this is happening between the U.S. and other countries especially China.
Donald Trump on Thursday tweeted that the U.S. is going to impose a 25% tariff on steel imports and a 10% tariff on aluminum imports as early as next week. Tariffs are a tax applied on imported goods. One of the reasons America’s doing this is to encourage American manufacturers to use steel and aluminum from their own country instead of importing it from other countries. As a retaliation to these tariffs, other countries have warned the U.S. that they too will impose stricter tariffs on their imports from America. A tit-for-tat kind of act! In other words- A trade war. And, one of the worst hit party in this war is China who is the world’s largest steel exporter!
Now that you know these topics, the next time someone mentions them you know what to say. If there more topics like this that have made you feel out of the loop, write to us at email@example.com and we will cover it in our next edition.