China Will Overtake US economy This Year; India Ahead of Japan

The U.S. may soon lose its status as the world's largest economy much sooner than is expected.

China is on track to pass the United State as the number one economy in the world this year 2014 not 2019 as previously expected. India has pass Japan to grab the third place, based on a new study from the world's experts.

The 2011 International Comparison Program (ICP), which works with the World Bank, evaluate economies using as purchasing power parity (PPP) as basis. It is an estimate of the real living costs. The results

The study shows a new and different results about global economy compared with the last update in 2005. It place China's GDP (gross domestic product) at 87% of the U.S. in 2011 and it said that China and India's economies have more than doubled against that of the U.S.

In the 2005 ICP study, it shows the economy of China at 43% which is less than half the size of the U.S.

Quoting from the report:

"The United States remained the world's largest economy, but it was closely followed by China when measured using PPPs. India was now the world's third largest economy, moving ahead of Japan.

The results indicate that only a small number of economies have the greatest shares of world GDP. However, the shares of large economies such as China and India have more than doubled relative to that of the United States."

China's economy grew yearly at 7.4% in the first quarter of this year, which shows that it is slowing. It was at 7.7% increase in the last quarter of 2013. However, their economic growth continues to outpace that of developed world economies.


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Weibo (China's Twitter) Underperformed in US IPO

Chinese micro-blogging platform like Twitter underperformed and sells fewer shares than expected. Weibo raised $286 million in its initial public offering in New York. The IPO launch for Weibo, which boast more than 100 million active users, was seen as a litmus test to gauge the demand for Chinese Internet stocks ahead of a well anticipated Alibaba Group Holding Ltd. listing.

They sold 16.8 million shares, which is 3.2 million shares short ot the expected 20 million shares. It was sold at $17 apiece, which was at the bottom of the projected range of $17 to $19.

The offering comes in the middle of broad weakness in the U.S. IPO market and a month-long retreat in stock prices that include both Chinese and U.S. Internet companies like Twitter. Twitter shares have fallen 18% since at the start of March.

Facebook Executives Big Payday

Facebook executives must be all smiles because of their huge pay although it's not as high as it was back in 2012.

Based on a SEC regulatory filing, three of Facebook's top executives earned more than $10 million in salary, bonuses and stock awards in 2013. In 2012, three top executives also earned more than $17 million.

Sheryl Sandberg, Facebook's Chief Operating Officer received $16.1 million in compensation last year, she earned $26.2 million back in 2012 which is a huge drop.

David Ebersman Facebook's Chief financial officer received $10.5 million in 2013 ($17.5 million 2012), while Mike Schroepfer, Facebok's chief engineer got $12.6 million in 2013 ($20.7 million 2012). CEO Mark Zuckerberg accepted a merely $1 salary for 2013, well why bother he has a net worth of $27 billion. 

Facebook's ad revenue is up by 72% last year that includes huge growth in mobile ads. Their overall sales was $7.8 billion on 2013, up from $5.1 billion in 2012.