Roads of death, coups, trade relations, & more!

Good Morning- The Top 1%. This label represents the ultimate financial success and is a goal for many business folks and professionals. Let's dig into what it takes to be part of this elite group and how things differ worldwide. In the United States, you need an annual income of over $421,000 to belong to the top 1%. But in less developed countries, this bar can be as low as $32,000. If you're aiming for the top 1% in the UAE, you must earn at least $922,000 per year before taxes. That's about 33,85,860 United Arab Emirates Dirhams.

Here's a snapshot of other notable countries:

1. Singapore: $722,000

- Monthly living expenses in Singapore: About $2169.

2. Bahrain: $485,000

- Just like the UAE, Bahrain doesn't impose personal taxes on its citizens.

3. Germany: $277,000

4. United Kingdom: $248,000

- The U.K. has the highest cost of living in 2023.

5. Australia: $246,000

6. Canada: $201,000

On a global scale, being in the top 1% of earners requires an annual income of around $537,000 USD

Global insights

Off the beaten path

South America is home to some of the most beautiful and interesting landscapes on earth. In terms of natural wealth, it is amongst the world’s elite but fiscal wealth is another story with many countries having 3rd world status. With low government funding & such a diverse terrain, it is a recipe to produce some of the most adrenaline-inducing and dangerous routes man can embark on. Let’s briefly take a trip down a few of these paths.

The Yungas Highway- also known as the Death Road, is one of South America's deadliest routes. Spanning 43 miles through Bolivia's Yungas forests, it climbs to 15,000 feet with drops of 3,000 feet. Notorious for traffic, poor conditions, and steep edges, it earned the "World's Most Dangerous Road" title in 1995. After modernization, it's safer and open to tourism. Over four decades back, the Death Road in Bolivia witnessed a staggering toll of 200-300 fatalities annually. However, there's been a significant improvement in its track record, as the average yearly death count has plummeted to just five since 1998. Death Road has been closed to bus and truck traffic since 1998

Colombia's counterpart to Bolivia's Death Road is referred to as the "Devil's Trampoline," locally known as "Adios a mi Vida." (translates to “goodbye my life) Constructed in the 1930s originally for military transport, this road has never undergone adaptations to suit everyday traffic, retaining its status as a narrow thoroughfare. Serving as a crucial route, the Devil's Trampoline connects the villages of San Francisco and Mocoa, tracing its origins from the Sunday Valley in southwestern Colombia.

Enduring challenging road conditions, enveloping fog and precipitous cliffs offers the chance to feast your eyes on the splendor of the Colombian countryside from an elevation of 9,000 feet above sea level.

French Connection

The recent military coup on August 30th in Gabon mirrors a trend across other countries in Africa like Mali, Chad, Guinea, Burkina Faso, and most recently Niger. These events prompted discussions about the future of France's involvement in these countries. All of these countries are former French colonies and still have a heavy French influence.

Diverse viewpoints come into play. The President of France Emmanuel Macron's commitment to ending perceived French influence in West Africa, termed "Françafrique," was reiterated during his visit to Francophone (French-speaking) nations. He emphasized a neutral French role, engaging without impacting domestic politics.

However, opinions on the ground diverge. France's presence in Gabon, with troops and economic links, draws scrutiny from its citizens with many wanting complete independence. The use of the Central African Franc (currency) and French-backed guarantees brings economic connections to light. Also notably in Niger, military leaders have instructed the police to expel the French ambassador in Niamey, Niger’s capital.

Gabon's present coup further entwines with French interests. The suspension of French mining company Eramet's operations, one of Gabon’s biggest employers, underscores these connections. France stands as Gabon's main trade partner, accounting for more than 30 percent of the nation's overall trade, mainly petroleum products. France has publicly condemned the coup.

Gabon grapples with a swift military takeover. President Ali Bongo's house arrest and the announcement of a new leader followed the election body's confirmation of Bongo's third-term win, which many argue was rigged.

Military officers, representing the armed forces, nullified election results on live TV. Borders were shut, and state institutions dissolved, in response to a tense election aiming to prolong the Bongo family's rule. General Brice Oligui Nguema, a former head of the presidential guard, became the transitional leader by unanimous senior generals' choice.

The Bongo family has ruled over Gabon since 1967

United States & Chinese trade relations

Trade relations between the United States and China are experiencing changes as the U.S. reduces its imports of goods from China, which is the second-largest economy globally. The shift in trade dynamics is attributed to ongoing disagreements involving technology and trade matters.

Experts, such as Chad Bown from the Peterson Institute for International Economics, have noted that American businesses are acknowledging the persistence of these tensions and seeking ways to manage associated risks.

Representing American companies, Beth Hughes from the American Apparel and Footwear Association mentioned that companies are considering various factors, including messages from Congress and the administration, as they navigate their business decisions.

Data from the Wall Street Journal, sourced from the Census Bureau, illustrates the declining U.S.-China trade relationship. China's share of U.S. goods imports has decreased from 21.6% in 2017 to 13.3% in the first half of 2023. This change is the second-lowest since China joined the World Trade Organization in 2003.

China's portion of overall trade with the U.S. has also declined from a peak of 16.3% in 2017 to 10.9% in 2023. This reduction encompasses various categories, including electronics, plastics, and clothing.

Specifically, the U.S. has diversified its sources for smartphone imports, reducing China's share from 84.6% in September 2021 to 75.7% in June 2023. Similarly, imports of Chinese semiconductors have decreased from 12.4% in August 2018 to 5.1% in June 2023. Recent policy actions, like the ban on American investment in Chinese advanced semiconductors and quantum computing by the Biden administration, have contributed to this trend.

Companies such as Apple and Mattel have made decisions to modify their relationships with China, opting to relocate production and diversify supply chains to other countries, like Mexico.

Trending

India’s economy continues to strengthen

India's GDP growth for the April-June quarter reached 7.8%. Private consumption increased by 6%, and the finance and real estate sectors experienced growth of 12.1%. The government adviser maintains a 6.5% growth forecast for the fiscal year 2024. This growth rate highlights India's status as one of the fastest-growing major economies.

Ukraine tells critics to “Shut up”

Ukraine told critics of its 3-month counter-offensive to “shut up” on Thursday. This statement from Kyiv marks a clear indication of their growing frustration with the leaked statements from Western officials, who have expressed concerns about the perceived sluggish advancement of Ukrainian forces. Ukraine has successfully reclaimed over a dozen villages. However, it has not yet managed to breach Russia's primary defensive lines

The Messi effect

Inter Miami," or Club Internacional de Fútbol Miami, made Messi an official player earlier this year, resulting in a valuation surge from $500 million to $1.5 billion. Their Instagram following skyrocketed from 900,000 to 14.3 million, and they also clinched a championship victory.

Putin takes over Wagner

Russian President Vladimir Putin is restructuring Yevgeny Prigozhin's Wagner mercenary group in Africa and the Middle East following the death of a former member in a plane crash. A Russian Defense Ministry-affiliated contractor will now oversee Wagner's activities in the Central African Republic, shifting control from independent operations to Russian military oversight. Putin has mandated that Wagner fighters and mercenaries pledge loyalty to the Russian state. This move is aimed at increasing Russian influence in Africa and the Middle East but may involve operational challenges.

JP Morgan facing Epstein allegations

JPMorgan Chase & Co. is under scrutiny as the U.S. Virgin Islands (USVI) alleges the bank processed over $1 billion in suspicious transactions linked to the late financier Jeffrey Epstein. The U.S Virgin Islands claim this money supported Epstein's illicit activities, strengthening accusations that JPMorgan knowingly benefited from his wrongdoing.

Epstein had been a JPMorgan client from the late 1990s until 2013 when the bank ended their relationship. The U.S Virgin Islands lawsuit has revealed the extent of Epstein's network, including high-profile clients he referred to JPMorgan and political contributions to USVI politicians.

JPMorgan denies allowing Epstein to operate without scrutiny, citing reporting of around 150 cash transactions related to Epstein between 2002 and 2013. Lawyers for the bank argue the US Virgin Islands lacks legal standing to claim obstruction of a trafficking investigation.

The U.S Virgin Islands attorney disclosed that JPMorgan's Treasury filing identified over $1 billion in suspicious transactions dating back to 2003. JPMorgan maintains its employees were unaware of Epstein's sex trafficking activities.

The U.S Virgin Islands seeks at least $190 million from JPMorgan, while the bank asserts that the U.S Virgin Islands failed to bring Epstein to justice. The case is set for trial in October, pending a decision on summary judgment requests.

This lawsuit highlights the ongoing legal scrutiny surrounding Jeffrey Epstein's financial dealings and associations.

Fast Facts

• Gmail is the third most important app to millennials, after Facebook and Instagram.

• Coffee is a fruit

• The Tamil language is recognized as the oldest language in the world, dating back as far as 5,000 years

• Traditionally in Japan, the number 4 is considered very unlucky because it is sometimes pronounced “Shi” which is the word for death

• Cleopatra, the final pharaoh of Egypt, lived much closer to our own than to the construction of the Pyramids at Giza.

Quote of the week

Be courteous to all, but intimate with few, and let those few be well tried before you give them your confidence.

-George Washington