7 Things You Need To Know About Finance This Week (July 31st, 2015)

Making financial news easy to understand.
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Making financial news easy to understand.

In this weekly series, we break down seven different things every person needs to know from the world of finance news. We're taking complicated stories and making them simple, easy to understand, and quick to read. Perfect for the man who wants to be in the know, but doesn't have the time to obsess over global markets.

1.) You Need To Know What's Happening In China

  • China’s stock market had its worst one-day decline since 2008, losing 8.5% on Monday. 
  • The government had recently taken steps to stabilize the market following a weak period about a month ago – and its actions worked for a while – but the dramatic weakness is back.
  • The market calmed down for the rest of the week but the sharp move hurt investors’ confidence in China.

2.) Better Than Expected Earnings Doesn't Equal Big Stock Wins

  • LinkedIn and Facebook reported better than expected earnings--but their stocks still sold off. 
  • Investors might be getting weary of the “tech” story after strong recent gains.

3.) Twitter Isn't Growing--Bad News For The Stock

  • Twitter crashed--it barely grew its number of users and the stock sold off 15% as a result.
  • Its stagnating user base might be too small to excite advertisers. 
  • Twitter’s stock price will likely languish until the company is able to start growing its user base again. 
  • The company does, however, have a plan: it is changing its feed to make it more appealing to users and less chronological (like Facebook’s newsfeed) and it is creating a new feature that highlights tweets, photos and video of a specific live event – you could, for example, view a Twitter summary of the Super Bowl.

4.) Spain Is Doing Solid

Spain’s economy is growing at its fastest rate since the economic crisis.
It grew more than 3% year-on-year showing it’s recovery prospects are good.

5.) Update On Greece

  • Greek might face an election very soon. 
  • Splits in the ruling Syriza party over the recently agreed bailout might force a snap election--putting the bailout itself at risk.

6.) Interest Rate Increase Likely

  • Decent US economic numbers and comments from the Federal Reserve make a September interest rate increase more likely. 
  • Higher interest rates are positive for the US dollar and possibly negative for stocks.

7.) Windows 10 Is Coming And Microsoft Needs It To Go Big

  • Microsoft launched its new operating system: Windows 10.
  • Previous versions of a “new” Windows have failed to win over users--neither business nor personal users. Early indications are that this time might be different--and it better be. 
  • The pressure to deliver is huge. It wants 1bn users within three years and the success of its stock price probably depends on it.

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