China’s centi-millionaire population—individuals with investable assets of $100 million or more—has surged by an astonishing 108% over the past decade, outpacing global and US growth rates.

According to a new report by New World Wealth and Henley & Partners, this remarkable increase highlights China’s booming tech and industrial sectors as primary drivers behind the surge in ultra-wealthy individuals.

As of 2024, China boasts 2,350 centimillionaires, a significant leap from previous years.

However, recent economic challenges, including a struggling property market, rising unemployment, and weak consumer spending, have tempered this growth.

Since 2020, the number of ultra-rich in China has grown by only about 10%, indicating a period of slower expansion after years of rapid wealth accumulation.

Hangzhou and Shenzhen poised for 150% growth by 2040

Despite current economic headwinds, cities like Hangzhou and Shenzhen are forecasted to see their centi-millionaire populations increase by over 150% by 2040.

Both cities have experienced robust economic performance, with Hangzhou’s GDP growing at 6.9% and Shenzhen’s at 5.9% year-on-year for the first half of 2024—outpacing China’s national growth rate of 5%.

This economic vitality is expected to continue attracting substantial-tech and industrial investments, fueling further growth in their ultra-wealthy populations.

US and China to lead global wealth expansion

The report projects that the US and China will continue to lead global centi-millionaire growth.

China’s centi-millionaire population is expected to expand by 80% to 100% by 2040.

Meanwhile, the US, with wealth hubs like New York, Los Angeles, and San Francisco, is anticipated to grow its ultra-wealthy population by more than 50%.

Both countries are set to outperform the global average growth rate of 75%, showcasing their resilience and potential for wealth creation despite uncertainties such as the upcoming US presidential elections.

New wealth hubs are emerging in Asia and the Middle East, with cities like Taipei, Dubai, Abu Dhabi, and Bengaluru projected to see a surge of 150% or more in their centi-millionaire populations by 2040.

This growth is driven by regional economic development, investments in technology, and favorable business environments that attract global capital.

These cities are becoming significant centers for wealth creation, diversifying the global landscape of the ultra-rich.

Slower growth in established wealth centers

In contrast, established wealth hubs such as Zurich, Chicago, Moscow, and Madrid are expected to see slower growth, with increases of less than 50% by 2040.

These cities face more mature and saturated markets.

In Europe, while larger economies like Germany, France, and the UK show modest growth, smaller markets such as Monaco, Malta, Montenegro, and Poland have experienced notable increases in their centi-millionaire populations, growing by 75% or more over the past decade.

The US political landscape could significantly influence future wealth migration trends.

Wealthy Americans are increasingly exploring alternative residence and citizenship options in response to potential changes in fiscal, economic, and social policies.

The outcome of upcoming presidential elections could impact both domestic and international migration trends among the ultra-rich, altering the wealth dynamics within the US and beyond.

Overall, China’s explosive growth in centimillionaires and the emerging wealth centers in Asia and the Middle East highlight shifting global wealth patterns.

As established centers face slower growth, the ultra-wealthy are increasingly looking to new regions for investment and opportunities.

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Mullen Automotive Inc (NASDAQ: MULN) jumped as much as 10% on Tuesday after announcing a new agreement with Pape Kenworth – one of the leading commercial vehicle dealers in the United States.

Pape Kenworth currently has a footprint in 9 states and employs 1,500 technicians across 815 service bays and 150 locations in total.

A sales and service agreement with it will, therefore, help the EV company meaningfully expand its commercial dealer network.  

Mullen Automotive has teamed up with six other franchise dealers to unlock fleet opportunities for its commercial electric vehicles in recent months.

Still, MULN stock price has been a big disappointment for investors in 2024.

Why is Pape Kenworth a big deal for Mullen stock?

Mullen and Pape Kenworth are convinced that collaboration will help ramp up commercial EV adoption.

The innovative lineup of the California-based company includes Mullen ONE and Mullen THREE; both of which are US safety standards compliant.

Additionally, the two commercial electric vehicles are eligible for several state and federal incentives that may help lower costs for fleet customers as well.

David Michery – the chief executive of MULN said in a press release today:

Pape Kenworth’s extensive reach and expertise in the commercial vehicle industry will play a crucial role in introducing Mullen’s commercial EVs to a broader market.

Still, our market expert Crispus Nyaga is bearish on Mullen stock and even expects the EV company to be the next Fisker that announced bankruptcy in June.   

Mullen shares remain a risky investment

Shares of Mullen Automotive continue to wave several red flags.

To begin with, the stock has enacted a 1-for-100 reverse stock split to remain listed on Nasdaq.

Moreover, the financial performance of the electric vehicles firm has been abysmal.

MULN has reportedly generated $16.8 million in revenue in the nine months ending June but is yet to recognize that revenue.

Over the same period, the EV company has lost $326 million which translates to a huge improvement from a $806 million loss a year ago – but is still concerning since it’s now left with $4.0 million only in cash, including cash equivalents.

Mullen Automotive has not been particularly prudent with its M&A strategy either.

The company spent $148 million on the Bollinger Motors acquisition in 2022 and another $240 million on buying Electric Last Mile Solutions.

In comparison, its market cap currently sits at $428 million only.

These factors made our expert Crispus Nyaga warn that Mullen could even file for bankruptcy by the end of 2024 as it can’t raise funds via share sale and a weak income statement limits its chances of securing debt financing as well.

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Meta, the parent company of Instagram, is introducing a new account setting specifically designed for users under the age of 18 in a bid to improve safety on its platform.

Beginning Tuesday, teenagers in the US, UK, Canada, and Australia will automatically be placed in a restricted “teen account” with enhanced parental supervision options when signing up for Instagram.

Existing accounts held by users under 18 will transition to this new setting over the next 60 days.

Meta plans to roll out similar changes to teen accounts in the European Union later this year.

This move comes amidst increasing public backlash over social media’s influence on young people’s mental health, with lawmakers, parents, and advocacy groups criticizing tech companies for failing to protect children from harmful content and online predators.

In January, the Mark Zuckerberg-led social media giant announced that it will implement new content guidelines to ensure teenagers using the platform get a secure and age-appropriate digital environment as advised by experts. 

However, in June, a Wall Street Journal investigation revealed that the platform was continuing to recommend adult content to underage users.

New features: Parental supervision, content restrictions

One of the most significant updates to the new teen accounts is the enhanced parental supervision options.

Parents will now have the ability to oversee their children’s Instagram usage by setting time limits, blocking app access during nighttime hours, and monitoring who their teens are messaging.

Teens under the age of 16 will need parental permission to change their account settings, while 16 and 17-year-olds will be allowed to modify certain restrictions independently.

“The three concerns we’re hearing from parents are that their teens are seeing content that they don’t want to see, that they’re getting contacted by people they don’t want to be contacted by, or that they’re spending too much time on the app,” explained Naomi Gleit, Meta’s head of product.

“Teen accounts are really focused on addressing those three concerns.”

In addition to the monitoring tools, these accounts will limit “sensitive content,” such as videos of violent behavior or cosmetic procedures.

Meta will also implement a feature that reminds teens if they’ve been on Instagram for more than 60 minutes and introduces a “sleep mode,” which disables notifications and sends auto-replies to messages between 10 p.m. and 7 a.m.

This feature is designed to help teens manage their time on the app and avoid excessive use at night.

While these restrictions are enabled by default for all teens, those aged 16 and 17 will have the option to turn them off. However, kids under 16 will need a parent’s consent to adjust the settings.

Growing legal challenges and mental health concerns

The introduction of teen accounts coincides with ongoing legal battles Meta is facing, as dozens of US states have sued the company, accusing it of deliberately designing addictive features on Instagram and Facebook that harm young users.

The lawsuits claim that Meta’s platforms contribute to the worsening youth mental health crisis, with teens exposed to unhealthy amounts of screen time, harmful content, and online bullying.

US Surgeon General Vivek Murthy voiced concerns last year about the pressures being placed on parents to manage their children’s online experiences without adequate support from tech companies.

In a statement in May, 2023, he said,

“We’re asking parents to manage a technology that’s rapidly evolving, that fundamentally changes how their kids think about themselves, how they build friendships, and how they experience the world.”

Meta’s latest effort to improve online safety for teens follows a series of prior attempts, many of which were criticized for not going far enough.

For instance, teens will still be able to bypass the 60-minute time notification if they wish to keep scrolling, unless parents enable stricter parental controls through the “parental supervision” mode.

Nick Clegg, Meta’s president of global affairs, acknowledged last week that parental control features have been underutilized, saying, “One of the things we do find … is that even when we build these controls, parents don’t use them.”

Teen accounts part of a global strategy

Unlike some of Meta’s other recent actions, such as the ability for EU users to opt out of having their data used to train AI models (a feature not yet available in other regions), the teen accounts are part of a global strategy.

In addition to the US, UK, Canada, and Australia, Meta plans to introduce these changes across the European Union by the end of the year.

Antigone Davis, Meta’s director of global safety, emphasized that this new feature was driven by parental concerns rather than government mandates. “Parents everywhere are thinking about these issues,” Davis told Guardian Australia.

“The technology at this point is pretty much ubiquitous, and parents are thinking about it. From the perspective of youth safety, it really does make the most sense to be thinking about these kinds of things globally.”

Countries explore social media regulation for teens

The timing of Meta’s announcement aligns with broader governmental efforts to regulate children’s access to social media platforms.

Just a week prior, the Australian government proposed new legislation to raise the age at which teens can access social media platforms to somewhere between 14 and 16.

If enacted, this law would place Australia among the first countries to enforce such a ban, with other nations like the UK monitoring its progress closely.

As countries like Australia and the UK explore further restrictions on social media for teens, Meta’s new teen accounts reflect a growing global awareness of the need for greater online protections for young users.

With its new features, Meta hopes to strike a balance between empowering parents and keeping Instagram a safe space for teens.

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American workers have faced an uphill battle over the past few years, as wages continue to lag behind the persistent rise in prices.

Despite signs that inflation is cooling from its pandemic-era highs, the gap between what employees earn and the cost of living remains a significant concern.

For many, real wages have barely budged, leaving workers struggling to maintain their purchasing power.

This article delves into the state of wage growth versus inflation, examining the latest data, projections for the future, and what policymakers are doing to address this ongoing issue.

The wage-inflation gap persists

Since the beginning of 2021, inflation has surged by 20%, while wages have only risen by 17.4%, according to Bankrate’s Wage to Inflation Index.

This 2.6% gap might not seem alarming at first glance, but for millions of American workers, it represents a considerable loss in purchasing power over time.

While wages have seen nominal growth, real wages—those adjusted for inflation—have stagnated, or in some cases, even declined.

Bankrate’s latest data highlights that wage growth has actually been slowing down in recent months. In the second quarter of 2024, wage growth was just 0.84%, down from 1% growth seen in previous quarters.

This slowdown has pushed back earlier forecasts that wages would outpace inflation by the end of 2024. Now, experts don’t expect wages to catch up until at least the second quarter of 2025.

For workers, this means that despite seeing slight pay increases, their real income continues to fall short of covering the rising cost of essential goods such as food, housing, and healthcare.

In fact, according to the US Department of Labor’s consumer price index (CPI), shelter costs alone have risen by 5.2% over the past year, accounting for the majority of the core inflation rate, which excludes food and energy.

Which industries are falling behind?

Wage growth has not been uniform across all sectors. Workers in industries like leisure and hospitality have fared better than others, seeing wage increases of 23.7% since January 2021, surpassing the national average.

These gains, however, are largely a recovery from the steep losses these industries experienced during the pandemic.

In contrast, sectors like education have struggled to keep up, with wage growth of only 13.6% over the same period, well below the overall inflation rate.

Workers in these lower-performing industries are feeling the pressure more acutely as the cost of living continues to rise faster than their earnings.

This disparity in wage growth has contributed to growing inequality among workers, with those in slower-growing sectors finding it increasingly difficult to keep pace with inflation.

Despite the appearance of a strong job market—characterized by low unemployment and steady job creation—the reality is that wage growth is falling short in many sectors, leaving millions of workers vulnerable.

Does the Fed care?

The Federal Reserve’s mission is to combat inflation, and they have done so by raising interest rates 11 times since March 2022, bringing the benchmark rate to 5.33%—its highest level in over two decades.

The goal of these rate hikes is to reduce borrowing and spending, which in turn should help ease upward pressure on prices. However, these rate hikes have also contributed to slowing wage growth.

The slowdown in the job market is a direct result of the Fed’s higher interest rates, which have made it more expensive for businesses to borrow money, invest, and expand.

This has led to more cautious hiring and smaller wage increases, even as inflation begins to ease.

The Federal Reserve now faces, among others, yet another dilemma: it must continue to reduce inflation without putting too much strain on wage growth and overall economic activity.

There are signs that inflation is indeed cooling, with the CPI rising by just 0.2% in August 2024, in line with economists’ expectations. But core inflation, which strips out volatile food and energy prices, remains elevated at 3.2%.

As the Fed prepares to engage the first rate cutting cycle in more than three years, it attempts to ensure that it doesn’t “slam the brakes” too hard on economic growth.

This could provide some relief to workers, as businesses might feel more confident in raising wages with lower borrowing costs.

Is there still hope for workers?

Despite the Fed’s efforts and the slight cooling of inflation, it’s unlikely that workers will see substantial improvements in real wages until mid-2025.

This extended timeline is frustrating for many Americans who have already been grappling with higher prices for the better part of three years.

The rising costs of everyday essentials like food, housing, medical care, and insurance are still outpacing wage growth, leaving many workers with less purchasing power than they had before the pandemic.

The wage-inflation gap represents more than just a numbers game; it’s a tangible economic strain that affects people’s daily lives.

For those in lower-wage sectors or industries with slower wage growth, the impact is even more profound. Many families have been forced to cut back on discretionary spending, delay vacations, and reduce savings just to make ends meet.

While some relief may be on the horizon in the form of potential interest rate cuts, the overall outlook for wage growth remains uncertain.

Even if inflation continues to ease, wages are expected to lag behind for some time, leaving many Americans in a precarious financial position.

What’s certain is that employers will keep “trimming the excess fat” and continue to lay off workers, all in the name of higher profits.

In addition to the easing monetary policy that is ahead, we can only expect that profit margins will grow as wages continue

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The Indian stock market traditionally witnesses a significant boost during the festive and wedding seasons and with Indians estimated to spend more than $50 billion during the wedding season between November and mid-December, certain sectors are likely to see a surge.

According to a note by Indian brokerage Prabhudas Lilladher, in 2024, the industry has already witnessed over 42 lakh weddings from 15 January to 15 July, generating an estimated expenditure of $66.4 billion (Rs 5.5 lakh crore), according to a survey by the Confederation of All India Traders (CAIT).

India is projected to host another 35 lakh weddings between November and mid-December alone, up from 32 lakh weddings during the same period in 2023.

This is expected to contribute approximately Rs 4.25 lakh crore ($51.20 billion USD) in economic activity.

The government’s push for the wedding industry

The Indian government aims to strategically boost tourism in India by positioning the country as a premier destination for international weddings.

The campaign will start by profiling around 25 key destinations across India, showcasing how the country meets diverse wedding aspirations.

Inspired by the Make in India campaign, this strategy seeks to attract approximately $12.1 billion (Rs 1 lakh crore) that is currently spent on destination weddings abroad.

The CAIT has dubbed this forward-thinking initiative as a strategic effort to stem the outflow of currency from India.

Key sectors to benefit 

According to PL Capita, with the festive and wedding seasons driving up consumer demand, certain sectors of the Indian stock market are likely to see a surge.

Retail stocks, particularly those related to clothing, home decor, and luxury goods, are expected to experience gains as families spend on elaborate ceremonies and gift-giving traditions, the brokerage said.

The jewellery sector is also set for a significant boost due to cultural ties between weddings and gold purchases.

The recent reduction in gold import duties from 15% to 6% is likely to further increase gold demand, with consumers using this opportunity to make large investments.

Source: PL Capital

“The cultural and religious significance of gold, combined with its role as a valuable investment, is expected to drive a substantial uptick in demand,” said Vikram Kasat, head of advisory at PL Capital.

Major jewellery companies like Titan and Kalyan Jewellers are likely to see their stock prices climb due to this heightened activity.

The hospitality industry will also see significant gains as more weddings are held in lavish venues, with an increase in the number of guests following the pandemic.

Hotels, airlines, and travel-related businesses stand to benefit as families spend on destination weddings and event services.

8 stocks to likely to look at

These are some of the stocks that are likely to benefit, according to the brokerage:

Arvind Fashions

Arvind Fashions is a prominent player in India’s apparel industry, offering premium brands like Arrow, US Polo, and Flying Machine.

During the wedding season, the demand for formalwear, ethnic wear, and high-end fashion surges, positioning Arvind Fashions to benefit from increased spending on luxury and occasion-specific clothing.

Ethos

Ethos is India’s largest luxury watch retailer, offering high-end brands like Rolex, Omega, and Cartier.

The Indian wedding season, known for grand celebrations and gift-giving, drives demand for premium watches, making Ethos a beneficiary as customers seek luxury gifts and accessories for special occasions.

InterGlobe Aviation (IndiGo)

As India’s leading airline, InterGlobe Aviation, the parent company of IndiGo, stands to benefit from the rise in travel during the wedding season.

With destination weddings and increased domestic and international travel for ceremonies, IndiGo is set to capitalize on higher demand for flights.

Hero MotoCorp:

Hero MotoCorp, the world’s largest two-wheeler manufacturer, could see a boost during the wedding season as families often purchase new vehicles as gifts or for personal use.

The company’s affordable range of motorcycles and scooters makes it a popular choice for gifting during weddings.

Source: PL Capital

Titan:

Titan, known for its luxury watches and jewelry brands like Tanishq, stands to gain immensely during the wedding season.

Gold and diamond jewellery are integral to Indian weddings, and Titan’s trusted brands are likely to see heightened demand as families make significant jewellery purchases.

Safari Industries:

Safari Industries, a key player in India’s luggage market, will likely benefit from the increased travel associated with weddings.

Whether for destination weddings or honeymoon trips, the demand for luggage and travel accessories tends to rise sharply during this period.

Sai Silks (Kalamandir):

Sai Silks, with its flagship brand Kalamandir, specializes in ethnic and bridal wear, making it well-positioned for the wedding season.

With millions of weddings taking place, the demand for sarees, lehengas, and other traditional attire surges, directly boosting the company’s sales.

Lemon Tree Hotels:

Lemon Tree Hotels, catering to midscale and economy travelers, stands to gain from the spike in bookings during wedding season.

With an increase in both domestic weddings and destination celebrations, the hospitality sector sees strong demand, especially from families and guests seeking affordable accommodation options.

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