Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Money

Why are Virgin Galactic shares crashing after world-first space flight?

Published

on

Just over 24 hours since billionaire Richard Branson made history and took off into space and Virgin Galactic stock has plummeted from the sky

Shares in Virgin Galactic rose over 200 per cent in the two months ahead of Sunday’s world first flight.

The luck for the space tourism company continued with a stock climb of about 9 per cent in Monday’s pre-market trading.

However, shares took a steep fall around 17 per cent during the regular session on Monday.

The stock’s move feels odd given the success the company had on Sunday.

The landmark flight to the edge of space opened up a new frontier for commercial space travel in a race between billionaires that has investors eye’s peeled.

Part of the reason for the fall may have to do with Virgin Galactic’s plans to sell more stock.

Market Expert Christopher Uhl joined ticker news and says there are simply no more buyers willing to pay higher prices for Virgin Galactic stock, now that the huge event of heading to the skies has passed.

Market Expert Christopher Uhl

“I was once a kid with a dream”: Richard Branson blasts into space

Well he finally did it. 17 years after Richard Branson first launched Virgin Galactic, the thrill-seeking billionaire has taken to the skies and reached space.

In his boldest adventure yet, the 70 year old Richard Branson took off for the first stage of the flight.

On the ground, about 500 people watched on, including Richard Branson’s wife, children and grandchildren.

On board were his five crewmates from his Virgin Galactic space tourism company.

The space plane detached from the mother ship at an altitude of about 13km and fired its engine, reaching the edge of space about 88km up.

After a few minutes of weightlessness for the crew, the space plane is began its decent, set to end with a glide to a runway landing.

Richard Branson couldn’t contain his excitement, as he spoke on the journey back to earth.

He thanked his crew and remembered all those who had worked on the mammoth project.

After a decade of promises, the moment finally came for Richard Branson to unveil his spaceship for the people.

He said on board:: “To all you kids down there, I was once a kid with a dream. Now I’m up here, in a space ship!”

Customer spaceflight experience

As Branson took to space onboard Virgin Galactic, his official role for the journey will be “evaluating customer spaceflight experience”.

And that’s an important role – after all anyone who wants to rise Virgin Galactic will need to part with a quarter of a million dollars first, and that price is expected to rise.

Along with the two pilots, there is room for six passengers with a flight time of about an hour and a half.

The Virgin Galactic rocket ship detached from the mothership.
The Virgin Galactic rocket ship detached from the mothership.

The spaceship will just go over the 82 kilometres, which is where the US recognises someone as having been into space.

Then, passengers will get to experience about six minutes of weightlessness and seeing the curvature of the Earth and the darkness of space.

They will then descend, landing on a runway much like the old space shuttle or a normal passenger plane.

The new space race

Richard Branson’s adventure will pre-empt next week’s first flight for Blue Origin, as Jeff Bezos launches his space dreams.

Jeff and Blue Origin are promising a completely different experience for their customers.

Blue Origin’s New Shepard, which has no pilots and room for six passengers, reaches more than 100 kilometres high, which is the internationally recognised boundary of space

Passengers on Blue Origin will get about three minutes to float around and feel like they are in space.

Might be half the time, but the price is 50,000 dollars cheaper than flying on Virgin Galactic.

But either way, the expensive thrill ride marks the beginning of earth’s commercial passenger trips into space.

Virgin Galactic doesn’t expect to start flying customers before next year.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Money

Gold prices soar to $4,000 an ounce milestone

Gold prices soar to $4,000 an ounce amid investor panic over dollar weakness and economic uncertainty

Published

on

Gold prices soar to $4,000 an ounce amid investor panic over dollar weakness and economic uncertainty

video
play-sharp-fill
In Short:
– Gold prices reached $4,000 per ounce due to a declining dollar and economic uncertainties.
– Investors are advised to be cautious as prices near $4,000 may lead to potential market corrections.
Gold prices reached $4,000 per ounce for the first time on Tuesday as investors sought refuge from a declining dollar, geopolitical tensions, economic insecurity, and persistent inflation.Gold futures closed at a record $4,004.40, peaking at $4,014.60 during the day.

Prices have risen about 50% this year, influenced by a 10% drop in the U.S. dollar index and shifts in trade policies under President Donald Trump.

Banner

Central banks and retail investors are increasingly purchasing gold.

Countries like China are moving away from U.S. Treasurys after significant sanctions imposed on Russia due to the Ukraine invasion in 2022. Retail investors desire protection from inflation.

The surge in gold prices followed the Federal Reserve’s interest rate cut in September, making short-term debt instruments less appealing. The expectation is for two further rate reductions by year-end, with the Fed’s next meeting scheduled for October 29.

Market Caution

Bank of America has recommended a cautious approach towards gold as prices near $4,000, warning of potential “uptrend exhaustion” that could result in a market correction in the fourth quarter.

Investors should remain vigilant regarding gold investments, as potential price consolidations may occur.


Download the Ticker app

Continue Reading

Money

International brands adapt strategies to reach Chinese consumers

International brands adapt strategies to engage Chinese consumers through localisation, data insights, and cultural integration amidst market challenges

Published

on

International brands adapt strategies to engage Chinese consumers through localisation, data insights, and cultural integration amidst market challenges

video
play-sharp-fill
In Short:
– U.S. and European brands are refining strategies to engage Chinese consumers despite economic slowdown.
– Localisation and consumer data are crucial for successful market entry and product development in China.
China’s economic slowdown has not deterred U.S. and European brands from redefining strategies to engage Chinese consumers.

The nation remains an enticing market, prompting companies to innovate amid rising local competition.Kraft Heinz, for example, has enlisted a local agency to enhance its ketchup sales, utilising promotional campaigns that resonate culturally, such as marketing ketchup in stir-fried egg dishes. Competition in this market is dynamic, with shifts in consumer behaviour evident over time.

Banner

Brands, including Starbucks and Lululemon, demonstrate that successful entry often hinges on localisation.

Effective international marketing strategies dedicate significant resources to content-first campaigns, tailoring products to local preferences. Under Armour’s approach features affordable product lines and community-building through livestreams.

Foreign investment remains robust in China’s evolving market, with brands adapting to new social commerce norms exemplified by platforms like Douyin. The shift presents unique challenges requiring comprehensive strategies, which can quickly yield substantial sales benefits.

Data Utilisation

Access to consumer data is critical for brands navigating the Chinese market. E-commerce platforms like Alibaba provide detailed consumer insights, allowing companies to innovate based on market needs. An example is Perfect Diary, a makeup brand, which successfully developed targeted products for price-sensitive consumers.

With the recent iPhone 17 launch, JD.com reported strong preorder volumes, highlighting the relevance of tailored features in attracting local interest. Companies that establish local R&D facilities gain a competitive edge by developing products that align with local tastes swiftly.

Cultural engagement is paramount for brands aiming to resonate with Chinese consumers.

Collaborations with local artisans signify a deeper cultural integration. Despite market challenges, innovative store designs, like LVMH’s new Shanghai location, reflect a blend of heritage and modern consumer values.


Download the Ticker app

Continue Reading

Money

How do banks assess you for a home loan?

Published

on

Ama Samarasinghe, RMIT University

Navigating the money side of buying a home can be daunting – especially if it’s your first time.

Unless you’ve recently come into a small fortune, you’ll need to have saved a deposit and take out a home loan.

That means engaging with the world of banks and mortgage brokers, and grappling with what might be intimidating-sounding jargon – terms like “pre-approval”, “offset accounts” and “serviceability buffers”.

Here’s a general guide to some of the essential steps: how to figure out what you can afford, how the loan process works, and some key things to watch out for before taking the plunge.

How much can you afford?

Taking out a home loan means you’ll be required to make regular repayments over many years. So, a bank or other lender will first want to make sure you can afford them.


This article is part of The Conversation’s series on buying a first home.

We’ve asked experts to unpack some of the biggest topics for first-home buyers to consider – from working out what’s affordable and beginning the search, to knowing your rights when inspecting a property and making an offer.


It’s important to understand the difference between borrowing capacity and affordability.

Your borrowing capacity is the amount a lender is willing to offer you, based on your income and debts, and their own stress tests. Affordability, on the other hand, is about you – your lifestyle, choices and actual spending patterns.

These two things are related but don’t always align, so it’s important to factor affordability into your decision. Being clear on both helps you avoid taking on more debt than you can comfortably manage.

Doing your own calculations first

It’s a good idea to start with your own numbers. List all your household expenses over at least the past six months – everything from groceries to streaming subscriptions – and work out the monthly average.

Streaming apps on a smart TV
Monthly subscriptions – such as streaming services – can have an impact on borrowing power.
Oscar Nord/Unsplash

After setting aside some room for savings and unexpected costs, the remainder gives you an indication of what could be available for mortgage repayments.

As a rule of thumb, many suggest keeping repayments to no more than about 30% of your after-tax income.

Here are a few tips to avoid mortgage stress:

  • Budget for reality, not hope. Don’t assume you’ll slash spending just because you’ve bought a home.
  • Stress-test your budget. Could you still make the repayments if your interest rate rose by 0.25–0.5%? What if it rose by 1-2%?
  • Don’t forget the extra costs that come up with home ownership. Factor in insurance, council rates and higher utility bills in a larger home.

How much will the bank lend you?

Your borrowing power depends mainly on:

  • household income
  • living expenses and debts (credit cards, car loans, buy-now-pay-later arrangements)
  • number of financial dependants.

Most banks have online calculators in their banking apps to check your borrowing capacity. The Australian Securities and Investments Commission (ASIC)’s Moneysmart site also provides calculators for borrowing and repayments.

Lenders are also required by law to check a borrower could still afford repayments if interest rates rose by a certain amount. This “serviceability buffer” is currently three percentage points.

Pre-approval doesn’t guarantee a loan

Getting pre-approval means a lender has reviewed your finances and indicates they’re willing, in principle, to lend you up to a certain amount.

But it isn’t a binding contract. You’re not locked into taking the loan, and the lender isn’t legally bound to provide it.

Still, getting pre-approval can have some benefits, including:

  • giving you confidence about your borrowing capacity
  • helping set realistic price limits and narrowing a property search
  • signalling to real estate agents and sellers that you’re a serious buyer, which can make you more competitive in a hot market.

At auctions, pre-approval is especially important. Once the hammer falls, the sale is binding – there’s no cooling-off period and no finance clause.

If you don’t have pre-approval in place, you could win the bid but may be unable to secure finance, leaving you at risk of losing your deposit.

Different types of loan

One of the first decisions you’ll face is whether to go with a principal and interest loan or an interest-only loan.

Principal and interest is the standard choice. Each repayment reduces both your loan balance and the interest owed. Most first-home buyers opt for this option because it steadily pays down the debt.

Interest-only loans mean that for an agreed period (say five years), you only cover the interest. Repayments are lower during that time, but the loan balance itself doesn’t shrink.

To illustrate, if you took out a $200,000 interest-only loan at 5% for five years, you’d pay $10,000 a year in interest. But at the end of the five years, you would still owe the full $200,000.

Interest-only loans can make sense for some investors focused on cash flow, but they’re far less common for first-home buyers.

Finding a loan

There are many ways to find a loan that suits your needs. You can compare products directly with lenders, use comparison sites, or go through a mortgage broker.

Mortgage brokers compare loans on your behalf and are often paid a commission by the lender, meaning you aren’t directly charged a fee.

It’s important to make sure they’re licensed (check ASIC’s professional register), reputable, and – if possible – recommended by family or friends.

A good broker will break down fees, features and hidden costs so you’re comparing more than just the interest rate. Before you sit down with a broker, think about what matters most to you: getting the lowest cost loan, or flexibility through features?

Take offset accounts as an example, where savings can reduce interest on the loan. An offset is a transaction account linked to your loan. If you owe $450,000 but keep $30,000 in the offset, you’ll only pay interest on $420,000.

Another common feature is called a redraw facility. This lets you make extra repayments (thus reducing the amount of interest you pay) and withdraw them later if needed.


Disclaimer: This article provides general information only and does not take into account your personal objectives, financial situation, or needs. It is not intended as financial advice. All investments carry risk.The Conversation

Ama Samarasinghe, Lecturer, Financial Planning and Tax, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

Trending Now