Money likely to move from India markets to China: Marc Faber

Money likely to move from India markets to China: Marc Faber

Equity markets across the world have performed very well as most markets in Asia have given a return of 20 to 25 percent in dollar terms. India is up 30 percent in dollar terms.

“I am positive on emerging markets for about a year relative to the US,” Marc Faber, the editor and publisher of The Gloom, Boom & Doom Report, said on CNBC’s “Squawk Box.”

“If I look back, after 2014, emerging markets grossly underperformed the S&P 500. If we look at major markets in Asia, India rose 30% in USD and Chin hasn’t gone up that much which bring me to conclude that some money will move from India to Chinese markets,” he said.

Why will the money move from Indian markets to China? “Sentiments around China were very negative in the past six months to a year but that is now turning positive,” added Faber.

Commenting on the dollar, Faber said that the U.S. dollar could “easily rebound” by 4 to 5 percent from current levels, but President Donald Trump and his administration stand in the way of the currency’s long-term strength.

The greenback has had a tough year, with the dollar index tumbling nearly 10 percent since the start of 2017. At the same time, gains among currencies such as euro and peso also added to the dollar’s pain, said a CNBC report.

Commenting on Gold, Faber said it is an under-appreciated asset. Data suggest that from December lows in 2015, the GDX, the Gold ETF is up more than 100% and this year the GDX is up more than 25 percent.

If we compare the performance of the S&P, it is a fabulous performance and some gold shares have even done very well, he said.

[“Source-moneycontrol”]

US markets lower after tech reversal from record highs

Businessman sleeping with bear with down trend graph

US markets closed lower on Thursday after technology sector rolled over.

The Nasdaq composite closed 0.6% lower at 2,475.42 and fell more than 1% earlier in the session. The S&P 500 also closed lower at 6,382.19, slipping 0.1% as tech stocks dropped 0.8 % to lead decliners.

The tech sector had notched an intraday record earlier in the session, along with the Nasdaq and the S&P.

Tech faced pressure as investors took profits off the table following strong earnings from companies in the space.

The Dow Jones Industrial Average, outperformed, closing 85.54 points higher at 21,796.55 level and notching intraday and closing records.

Meanwhile, initial jobless claims came in at 244,000, slightly above the expected 240,000. Durable goods orders, meanwhile, rose 6.5% in June.

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[“Source-indiainfoline”]

Fingerprint Firms Unlocking New Markets Beyond Smartphones

Fingerprint Firms Unlocking New Markets Beyond Smartphones

A tap of a finger could soon suffice to identify credit card shoppers and rail commuters, offering areas of new business for specialist companies which have benefited from the use of such technology in smartphones.Sweden’s Fingerprint Cards (FPC) sees biometric smart cards those using fingerprint identification becoming its fastest growing market as early as 2018, having already become the market leader in a crowded sector for supplying such sensors for smartphones.

Others within the industry are not convinced the smart card business will take off so quickly, prompting questions about whether FPC can maintain its runaway rise in valuation.

FPC’s share price surged around 1,600 percent last year as demand for fingerprint sensors in phones soared after Apple, which uses its own in-house supplier, helped to popularise the technology. FPC now has a market value of around $4.1 billion (roughly Rs. 27,302 crores).

Advocates say the technology offers greater security and simplicity when compared to techniques such as using pin codes to confirm identification.

The fingerprint sensor business has a handful of companies supplying significant volumes today, with an equal number planning to enter the market. Three are based in the Nordic region where technology companies have thrived.Needing to maintain its momentum, FPC says it is in initial talks with potential big customers for smart cards. It declines to name names at this stage.

“Our ambition for smart cards, and all other segments, is that we shall continue to be number one,” FPC’s Chief Executive Jorgen Lantto told Reuters.

Silicon Valley firm Synaptics, the closest rival to FPC in sensors for smartphones, is more cautious on new markets.

“It’s hard for me to project market share in a segment of the market (when) we’re not sure when it’s going to happen,” said Anthony Gioeli, vice president of marketing in the biometrics division of Synaptics.

Sascha Behlendorf, a card systems product manager at Germany’s Giesecke & Devrient, one of the top three smart card makers, expects widespread adoption of biometrics in smart cards could take some five to 10 years.

Range of uses
Gothenburg-based FPC has been around for almost two decades, building a technology business based on an old Swedish fingerprinting patent. That left it well placed when the market expanded and it has also benefited by hiring staff from Nokia and Ericsson as their mobile phone businesses declined.

Analysts say expectations for new markets have helped to underpin the huge leap in valuation for FPC.

However, Carnegie analyst Havard Nilsson this week cut his recommendation for FPC to “sell” from “hold”, citing what he called unwarranted share price appreciation and repeated his target price of 450 crowns. The shares traded at 524 crowns on Thursday.

“Given that smartphones should constitute 60-70 percent of the global addressable market (in 2020), we do not believe new verticals, such as smart cards, will be able to compensate for competitive pressure in consumer electronics,” Nilsson wrote.

He sees earnings per share peaking at 37 crowns in 2018.

Beyond payments, biometric smart cards could be used to allow access to buildings and IT-systems, according to FPC. Keyless entry to cars is another potential major market, as are wearable products such as watches or wristbands serving as a substitute identity card. FPC includes such applications in its forecasts for “other segments” of business.

FPC sees a total addressable market for this part of its business of roughly 100 million sensors in 2017 and around 500 million in 2018. It is the only player so far to make specific forecasts for these new markets.

“We talk to a lot of players and companies come to us. There is substance behind our numbers,” Lantto said, adding that FPC has held talks with a handful of big potential smart card clients since last autumn.

Most suppliers of fingerprint sensors, including FPC, use 3D imaging technology for recognition of a fingerprint, while Next Biometrics in Norway uses heat sensing technology.

IDEX, another Norwegian competitor, roughly shares FPC’s forecasts for segments beyond smartphones for the coming few years, Chief Financial Officer Henrik Knudtzon said.

IDEX, which last summer entered a partnership with an unnamed global payments company for biometric applications, is integrating its sensors into smart cards with partners and expects shipments to start towards the end of this year, Knudtzon said.

© Thomson Reuters 2016

Tags: Fingerprint Cards, Internet, Mobiles, Tablets, Biometrics, Fingerprint sensors
[“Source-Gadgets”]

Emerging Markets for High Tech Ideas

Why don’t inexperienced entrepreneurs with high tech business ideas sell those ideas to existing companies with the knowhow and resources to exploit them successfully? Since companies like Apple and Cisco have shown their skill at bringing new products to market successfully, having them exploit entrepreneurs’ new product ideas should leave everyone better off.

High Tech

Nobel Prize-winning economist Kenneth Arrow explained why entrepreneurs rarely sell their new product ideas to established companies better able to exploit them.

His answer has become known as “Arrow’s Information Paradox” and goes like this: If you try to sell someone a piece of knowledge, like an idea for a new product, they won’t buy it unless you also provide evidence that the idea will work. Otherwise, the buyer risks wasting money on ideas that go nowhere. Therefore, to sell an idea to someone else, an entrepreneur needs to disclose information about it.

That’s the problem. Ideas cannot be taken back once they are revealed. However, once someone has been told an idea, any incentive to pay for the idea evaporates since the information the information just provided for free cannot be rescinded.

This is the paradox: Ideas cannot be sold if they aren’t disclosed, but once they are disclosed no one will pay for them.

Professor Arrow explained that the patent system helps to solve this paradox. If you have a patented technology, you can disclose it to see if a buyer is interested. If the disclosure peaks the buyer’s interest then he or she will have to pay to use it. As long as the patent cannot easily be worked around, this legal protection precludes others from pursuing your idea without paying for it.

Companies are getting much better at avoiding Arrow’s Paradox than they use to be. While markets for technology remain a very tiny share of all economic activity – the World International Patent Organization (WIPO) reports that they totaled approximately 1/3 of 1 percent of world GDP in 2009 – they are growing very rapidly. The WIPO found that when measured in constant (2009) dollars, the total spent on royalties on licensing was $15.5 billion in 1970, $44.3 billion in 1990 and $180 billion in 2009.

Alongside the rise in the magnitude of markets for technology, a variety of organizations that help match buyers and sellers have emerged, including IP clearing houses, technology licensing offices at universities and government agencies, IP brokerages, and auction houses, WIPO reports. Moreover, big, established companies have become more active at soliciting technologies developed by independent entrepreneurs and academic institutions. And more companies are forming to make money solely from the development and sale of intellectual property, letting others use their IP to make and sell products.

In short, in high tech, more businesses are selling ideas as companies are using the patent system to get around Arrow’s paradox.


High Tech Concept Photo via Shutterstock

[“source-smallbiztrends”]