Trust in U.S. Dollar Wavers

FINANCE
Trust in U.S. Dollar Wavers

President Donald Trump’s foreign policy moves have shaken America’s allies and raised questions about the long-term reliability of U.S. commitments. While the dollar remains dominant in global finance, concerns are growing over whether America can still be trusted. Trump’s unpredictable diplomacy—ranging from questioning NATO commitments to imposing tariffs on allies like Canada and Mexico—has introduced doubt into global markets. Some analysts now warn that the dollar’s status as the world’s reserve currency could weaken if trust in U.S. leadership continues to erode.

Moody’s recently cautioned that rising U.S. debt could threaten the dollar’s privileged status, and leading economists say global confidence in U.S. treaties and institutions plays a critical role in sustaining the dollar’s dominance. The trend of de-dollarization is gaining momentum, with countries increasing gold reserves and diversifying away from dollar-based assets.

While central banks still rely on the Federal Reserve in times of crisis, quiet doubts are surfacing. If America adopts a more isolationist stance, as some fear, the global financial system could gradually shift. Trump’s “America First” approach may evolve into “America Alone,” triggering further moves away from the greenback. Gold, in contrast, has surged, doubling in value since 2022 and reaching record highs. Bank of America predicts it could climb to $3,500 as confidence in the dollar softens. Ultimately, the dollar’s fate depends not just on economics, but on America’s willingness to maintain alliances, uphold treaties, and lead responsibly on the global stage.

FINANCE
Smartphone Comeback Boosts Huawei Sales

Huawei reported a significant revenue increase in 2024, reaching 862.1 billion Chinese yuan ($118.2 billion), up 22.4% from the previous year. This marks the company's second-highest revenue on record, just below its 2020 peak. Despite strong sales, net profit fell 28% year-on-year to 62.6 billion yuan, mainly due to a rise in research and development spending, which jumped to 179.7 billion yuan — 20.8% of total revenue.

The growth was driven by its ICT infrastructure and consumer divisions, which together made up 82% of Huawei’s revenue. ICT infrastructure revenue rose 4.9% to 369.9 billion yuan, fueled by expanding 5G and the rollout of advanced 5.5G networks. The consumer division surged 38.3% to 339 billion yuan, powered by a strong comeback in the smartphone market.

Huawei’s domestic smartphone sales soared 37%, boosting market share from 12% to 16%, largely at Apple’s expense. This rebound followed a semiconductor breakthrough that allowed Huawei to launch high-end phones, including the first trifold handset. The company also released HarmonyOS 5, a version reportedly free of Google Android code. However, global growth remains a challenge due to ongoing U.S. sanctions and limited access to top-tier chips and software used by rivals like Apple and Samsung.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.