ESSA

ESSA

Editors’ Picks — 17th May 2015


ESSA Publications

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May 17th, 2015


This week, readers are given a chance to see the effects of certain budget cuts and investment initiatives; how did Twitter’s share price drop by US$8b, and should we be trusting market trends? Moving beyond Australian borders, we explore Africa’s rapid urbanisation and China’s new proposal to invest $50 billion in Brazil.


You Balance the Budget — The Guardian

The hot topic of debate this week is Joe Hockey’s new budget. The Guardian gives readers the chance to experiment with particular budget cuts, with the ultimate goal of achieving greater savings and decreasing the deficit.

 

Motley Fool: Can Qantas continue to soar? — Andrew Page

Motley Fool investment advisor, Andrew Page, claims that investors should not trust the trends of the share market; despite Qantas’ admirable gains in the past year, investors need to be aware that this trend cannot last forever. What buyers need to look out for is sustainable competitive advantage, and ‘tenaciously’ wait (potentially many) years before reaping returns.

 

Twitter gets stung by an errant tweet but investors shouldn’t write the company off — Sotirios Paroutis

Twitter has decreased its full-year expectations due to a leaked tweet. Twitter’s share price dropped by US$8b, after the premature release of a tweet exposing that the company had failed to meet analysts’ expectations. However, Paroutis claims, upon deeper analysis of the company’s business model, the outlook for Twitter is positive and investors should not be too concerned.

 

Done right, urbanisation can boost living standards in Africa — Patricia Jones

Africa is experiencing a rapid growth in urbanisation and, as this occurs, a number of challenges are arising for the country. Greater congestion, increased commute times and evidence of growing pollution are a few of the issues Africa is now facing. However, Jones claims, because of Africa’s comparatively late urbanisation, there is a chance for Africa to ‘get things right’ by learning from other countries; the focus should now shift towards long-term growth.

 

Chinese ‘economic colonisation’ of Brazil continues with a $50bn railway running across South America — The Independent

New information suggests that China is planning to invest $50 billion in Brazil’s infrastructure. The plan entails a rail link from the Atlantic coast of Brazil to Peru’s Pacific coast; an initiative to save export costs to China. This project will be another test for Brazil and China’s economic relationship; the first being demonstrations in Brazil sparked by China’s purchase of Brazil’s largest oil field in 2013.

The views expressed within this article are those of the author and do not represent the views of the ESSA Committee or the Society's sponsors. Use of any content from this article should clearly attribute the work to the author and not to ESSA or its sponsors.

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