Hi Reader, here's what you need to know for March 31st in 2:54 minutes.

🤔 Curious about markets, stocks, or opportunities we haven’t got round to covering? We’d love to know: tell us what you think we should be writing about, and you might see it pop up in a future newsletter.

Today's big stories

Apple supplier Foxconn posted earnings that missed analysts' expectations and warned chip shortages could hurt its future orders
There are five reasons to buy the dip in gold’s price – Read Now
London apartment prices are recovering in what could be good news for cities everywhere

Foxconned

What’s Going On Here?

Taiwanese electronics assembler and major Apple supplier Foxconn posted earnings on Tuesday that missed analysts’ expectations – and warned that ongoing microchip shortages could hurt its future orders.

What Does This Mean?

Strong demand for Foxconn-built iPhones and home-working equipment drove last quarter’s revenue higher, but international currency swings ate into the company’s profit. As the value of the Taiwanese dollar increased relative to the American, Foxconn’s local costs increased, while the worth of its overseas sales was eroded.

But naturally forward-looking investors were more bothered by Foxconn’s unexpectedly dire predictions for the future. The company warned that the global shortage of microchips could potentially leave it unable to fulfil up to 10% of its orders this year.

Why Should I Care?

For markets: Tech firms struggle when the chips are down.
Semiconductor shortages were previously thought to hit carmakers hardest: they reportedly pay less for chips than technology companies and are therefore last in line. But as the world’s largest electronics assembler, Foxconn should know when tech firms are also set to miss out. That may help explain why Apple’s share price initially fell 2% on Tuesday.

Zooming out: My other car is a Foxconn.
Taiwan’s largest firm recently announced plans to help other companies build electric vehicles (EVs) too. It’s a fast-growing market, but Foxconn may have its eye on Apple in particular. The Californian company is planning to launch its own smart cars soon, and may well need assistance with production and assembly. Foxconn has already entered partnerships with carmakers including Geely, and investment bank Morgan Stanley reckons more tie-ups are in the pipeline: it estimates Foxconn’s EV shipments could make up 10% of the global total by 2025 (tweet this).

You might also like: How much Apple’s shares are really worth.

Copy to share story: https://www.finimize.com/wp/news/foxconned/

🙋 Ask a question

2. Analyst Take

Five Reasons To Buy The Dip In Gold’s Price

What’s Going On Here?

The price of gold hit an all-time high back in August, but since then it’s collapsed 17%. That’s left investors wondering whether to cut and run, or if now’s the time to buy.

That means analyzing the five key drivers of the commodity’s price, and – for the first time in a while – they’re all saying the same thing: there’s an opportunity in gold.

Whether you’re looking to add gold to your long-term portfolio, profit from a short-term trade, or simply understand what drives gold’s price, knowing how to analyze those indicators is worth its weight in gold.

So that’s today’s Insight: what drives gold prices, why now could be the time to buy – and what to look out for that means it’s time to sell.

Read or listen to the Insight here

Get your free bitcoin here

Bitcoin is the best-performing asset of the last decade, and its meteoric rise has been hard to miss.

In fact, if you’d saved $50 worth of bitcoin a week for the last three years, you’d have turned $7,850 into $ 60,294.

Swan Bitcoin makes it simple to do exactly that: it’s the best way to buy bitcoin with your bank account.

We’re talking instant purchases and automatic recurring buys, with daily, weekly, or monthly savings options to steadily convert your dollars into bitcoin savings.

And if you sign up with Swan today, you’ll get $10 in free bitcoin.

Find Out More

Turn off adverts