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Mercosur: The EU Gives the Green Light to the Agreement

Mercosur agreement: a new era for global trade?

After 25 years of negotiations, Mercosur and the European Union are closer than ever to finalising a strategic partnership. So, what does this actually mean?

Mercosur and the European Union may be on the verge of signing a trade agreement that the European Commission itself has called “the biggest free trade deal ever signed”. The EU-Mercosur agreement involves countries that account for approximately $20 trillion in GDP and 700 million consumers.

What Exactly Is Mercosur?

The Mercosur—or Mercado Común del Sur (Common Market of the South)—is an organisation established in 1991 by the Treaty of Asunción. Its purpose is to “promote a common space that generates business and investment opportunities through the competitive integration of national economies into the international market”. The full members are Brazil, Argentina, Paraguay, and Uruguay. Venezuela was also a full member but was suspended in 2016 due to anti-democratic practices. Bolivia is currently in the process of joining as the fifth full member.

Additionally, there are several associate members, who enjoy privileged status but are not part of the main bloc. These include Chile, Colombia, Ecuador, and Peru.

Mercosur is a common market with the goal of increasing the exchange of goods and services, as well as the free movement of people. This applies both regionally among South American countries and internationally through agreements with other blocs, such as the one with the European Union. To achieve this, member countries are working to mutually reduce customs barriers, thereby promoting economic integration.

In 2023, the Mercosur bloc generated $447 billion in exports and $357 billion in imports, which is equivalent to 10.9% of international trade. These figures include both internal trade among members and external trade with other countries.

What Does the EU-Mercosur Agreement Entail?

Negotiations between the EU and Mercosur have been ongoing for approximately 25 years, marked by periods of tension and détente. A breakthrough finally occurred on 6 December 2024 in Montevideo, Uruguay, when EU leaders reached an understanding with the South American bloc countries. This past Wednesday, the European Commission presented the treaties that will define the commercial agreement, representing another significant step towards its officialisation.

The agreement is a result of a shared desire to remove trade barriers, ensure a responsible and eco-friendly supply of raw materials—with a particular focus on addressing Amazon deforestation—and send a clear message in favour of regulated international trade and against all forms of protectionism.

Specifically, the agreement is based on a principle of reciprocity. European industries, primarily those in automotives, machinery, and spirits, will gain greater access to the Mercosur market. In return, Mercosur will be able to more easily export its agri-food products to Europe, including meat, sugar, coffee, and soy.

This latter point, in particular, has caused some concern among agri-food companies in France, Poland, and, to a certain extent, Italy. The primary fear is related to unfair competition. South American countries have less restrictive environmental and food regulations than the EU, allowing the use of antibiotics, pesticides, and hormones that are banned in Europe.

In any case, the agreement provides for a gradual easing of customs tariffs on 90% of goods traded between the two blocs. It also establishes preferential channels for both European and South American companies, giving them greater access to public tenders and investment opportunities.

According to the European Commission, the final result will be a 39% increase in EU exports to Mercosur and an estimated 440,000 new jobs created across Europe.

The Road Ahead

As anticipated, the EU-Mercosur agreement is not yet official. However, it represents a crucial phase in bringing the two blocs closer, especially as they seek protection from costly Trump-era tariffs.

This is an interim trade agreement, meaning it is provisional. As such, it does not require the approval of all 27 member states, but rather only the ratification of the qualified majority of the EU Council. This means at least 15 out of 27 countries (55%) that represent at least 65% of the population must vote in favour.

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Russia-Ukraine war: updates

Russia–Ukraine war: any updates?

It was a busy weekend for Donald Trump, who met with Putin, Zelensky, European leaders, and NATO representatives. What happened – and how did markets react?

It was an eventful and politically charged weekend: over the course of four days, a bold and unpredictable Donald Trump hosted Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, six European heads of state, including Giorgia Meloni, and NATO Secretary General Mark Rutte in the United States. The aim? To seek a potential solution to a war that has now entered its fourth year, following Russia’s invasion of Ukraine.
Here’s a brief recap of what took place – and a final look at how the markets responded.

Trump and Putin: meeting in Alaska – 15 August

On 15 August, at a US military base near Anchorage, Alaska, US President Donald Trump met face-to-face with Russian President Vladimir Putin to discuss the ongoing war in Ukraine. The lead-up to the meeting attracted global attention, mainly due to Trump’s surprisingly warm demeanour towards Putin: red carpets, handshakes, pats on the back, and broad smiles.

But one detail, in particular, made headlines: the US President spontaneously offered his Russian counterpart a ride in the iconic, armoured presidential limousine – known as “The Beast” – away from cameras and microphones. What was said during that ten-minute ride remains unknown. What is certain, however, is that the two men were seen laughing and chatting amicably, like old friends.

As for the press conference that followed – the quotation marks are deliberate – very little of substance was shared. The two leaders answered virtually no questions, instead offering vague and formulaic statements.

Putin opened with praise for the atmosphere of “mutual respect”, going so far as to remind attendees that Alaska was once a Russian territory. He then shifted to the main topic: the war in Ukraine. Once again, the Russian leader insisted that peace talks could only begin if certain preconditions were met – namely, international recognition of Russia’s claims over disputed regions, Ukraine’s demilitarisation and neutrality, a ban on foreign military presence, and new Ukrainian elections.

Then it was Trump’s turn. Notably restrained, the US President – usually known for his long-winded statements – kept things brief. “There were many points on which we agreed”, “great progress”, and “an extremely productive meeting” were among the few phrases he offered. In essence, a lot of diplomatic smoke and mirrors, followed by the admission that no concrete agreement had been reached – but that “we have a very good chance of getting there”.

Trump, Zelensky, Europe and NATO meet in Washington, D.C.

Between Sunday and Monday, Donald Trump held talks with Ukrainian President Volodymyr Zelensky, before extending invitations to six European leaders – France’s Macron, Germany’s Mertz, Italy’s Meloni, Britain’s Starmer, Finland’s Stubb, and EU Commission President Ursula von der Leyen – as well as NATO Secretary General Mark Rutte.

The main topic on the agenda was clear: the security and territorial integrity of Ukraine. For months, Zelensky, alongside European and NATO officials, has been urging President Trump to provide firm guarantees that any peace deal must respect Ukraine’s sovereignty, and that future agreements must act as a deterrent against further Russian aggression. The proposal? To allow Kyiv to build a modern, specialised and well-equipped army that would discourage any future invasions.

The problem? As we saw earlier, Vladimir Putin is wholly opposed to this and has made very different demands.

What’s Next?

It’s difficult to predict, given Putin’s elusive nature and Trump’s unpredictability. That said, on August 19, Trump confirmed that Putin had agreed to a direct meeting with Zelensky, which would be followed by a trilateral summit involving the US, Russia, and Ukraine.

In a post on his Truth Social account, Trump wrote:
“At the end of the meetings, I called President Putin and began organising a meeting, at a location to be determined, between President Putin and President Zelensky. After this meeting takes place, we will have a trilateral meeting, which will include the two presidents and Mme”

UK Prime Minister Keir Starmer and German Chancellor Mertz also confirmed this announcement.

How did the markets react? 

The reaction from traditional financial markets was largely positive. The three major US indices – the Nasdaq, Dow Jones, and S&P 500 – initially rallied on news of the Trump–Putin summit in Alaska, before easing back slightly. Analysts suggest investors were hoping for more concrete results, rather than vague diplomatic gestures.

A similar trend was observed across European markets, particularly in Paris, Frankfurt, and London, which have all been performing strongly since early August.

The crypto market, however, told a slightly different story.

Between August 13 and 14, Bitcoin surged to a new all-time high of $124,000, before pulling back to around $115,600 after again failing to break through the resistance zone between $121,000 and $123,000.

Ethereum also came close to surpassing its own all-time high, missing it by just $100. It’s currently trading at around £4,300, with a renewed breakout attempt looking likely – especially now that the previous resistance at £4,100 seems to have become support.

As for the Total Market Cap, since the announcement on Thursday, 7 August, it has risen from $3.7 trillion to approximately $3.85 trillion – a gain of around 3.8% (roughly $150 billion).

Lastly, Bitcoin dominance continues to slide. Over the past 12 days, BTC’s market share has decreased by more than three percentage points, currently standing at 59.7% at the time of writing.

Is there a glimmer of hope?

So, can Donald Trump really bring Vladimir Putin and Volodymyr Zelensky to the same negotiating table? Are we genuinely moving towards peace, or is this just political theatre?

And what role will Europe play in the outcome?

Subscribe to our Telegram channel or sign up directly to the Young Platform below to stay up to date with all the latest developments.

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How the Stock Exchange works, explained simply

How does the stock market work?

NYSE, Nasdaq, LSE – what do these names mean? They refer to some of the world’s leading stock exchanges. But what exactly is a stock exchange, and how does it work?

The stock exchange, more commonly known as the stock market, is a financial marketplace where shares, bonds, and other securities are bought and sold. Once considered the domain of financial insiders, the stock market has now entered popular culture, thanks in part to numerous cult films that have graced cinema screens since the 1970s.

But what is the history of the stock exchange? What are its key components? And who are the leading players involved? Let’s take a closer look.

How and when was the stock exchange created?

The earliest recorded evidence of trading, lending, and deposit activities dates back to the second millennium BC, inscribed in the Babylonian Code of Hammurabi. Similar financial practices were also found among the ancient Greeks, Etruscans, and Romans.

However, these early forms of financial exchange cannot truly be considered a ‘stock market’ as we understand it today. The first genuine stock exchange was established in Amsterdam, in the Netherlands, around the 17th century.

The Middle Ages

In the late Middle Ages, the world of finance began to take on a more structured form with the emergence of the first banking institutions. Italy – particularly the cities of Genoa, Venice, and Siena – was, for many years, the central financial hub of Europe.

Around the 14th century, a new trading centre emerged that attracted merchants from across the continent, helping to shape a financial system that was still quite rudimentary. This was in Bruges, Belgium, specifically in the Ter Buerse Palace, built by the aristocratic Van der Bourse family. It was here, where merchants gathered to exchange goods and currencies, that the name ‘Borsa’ (stock exchange) originated.

Later, essential exchanges were established in Antwerp, Lyon, and Frankfurt, marking a shift from private to public management, with increasingly clear and stricter regulations.

The Modern Age

In the 17th century, the Amsterdam Stock Exchange became the most important in Europe – and likely in the world. This period also saw the creation of the first joint-stock companies, which significantly boosted the trading of securities, including government bonds and commodities.

The 18th century witnessed the rise of international trade, as well as the emergence of speculative bubbles. The most famous was the South Sea Bubble in England (1710–1720), when share prices soared before collapsing, causing heavy losses. It led to the Bubble Act, a law aimed at curbing speculation by limiting the formation of new companies.

Meanwhile, in New York, a group of merchants began meeting under a plane tree on Wall Street to trade securities – a humble beginning for what would become a future global financial centre.

The Industrial Revolution and the modern stock market

During this period, the stock market became crucial not only for company growth but also for the economic development of entire nations. London and Paris became key financial markets, funding industrial projects, infrastructure, and even colonial and military ventures.

In 1817, the New York Stock Exchange (NYSE) was officially established. Over time, it would grow to become the world’s largest stock exchange by market capitalisation.

The 20th century: successes and severe financial crises 

By 1900, the stock market had become the beating heart of the capitalist system. Economics and finance were now deeply interconnected. It was a century marked by sharp contrasts, alternating between periods of remarkable economic growth – such as the Roaring Twenties and the post-World War II boom – and severe financial crises, including the Great Depression of 1929 and Black Monday in 1987.

This volatility highlighted the need for regulation. Supervisory authorities such as the SEC (Securities and Exchange Commission) in the United States and Consob (National Commission for Companies and the Stock Exchange) in Italy were established to oversee financial markets, which were now dealing with enormous capital flows.

In 1971, the Nasdaq was founded, marking the beginning of the stock market’s transition from a physical trading floor, filled with shouting and hand signals, to an electronic system driven by computers and algorithms.

The digital age

Fast forward to today: the rise of the Internet has transformed how the stock market functions. It has brought greater accessibility, instantaneous transactions, unprecedented capital mobility, and the emergence of entirely new markets.

Now that we’ve explored its history, let’s take a closer look at how the stock market works today.

How does the stock market work?

To understand how the stock market works, it’s first essential to understand what it is. The stock market can be described as the financial engine that links the world of businesses with that of savers and investors. On one side, companies seek capital to fund their growth – whether by opening new branches, developing new products, or hiring staff. On the other hand, individuals look for opportunities to grow their savings. This is where the concepts of primary and secondary markets come into play.

The primary market is where shares are created. When a company lists on the stock exchange for the first time, it sells its shares directly to investors – a process known as an IPO (Initial Public Offering). Investors, by purchasing these shares, provide the company with the necessary funds to grow.

The secondary market, on the other hand, is the market in which existing shares are bought and sold between investors on a daily basis. Companies do not earn money from these transactions, but the market allows investors to profit from rising prices.

But shares are not the only financial instruments traded on the market. A large portion of investments also involves bonds. Understanding the difference between the two is fundamental.

What are shares?

As mentioned earlier, shares represent small units of ownership in a company. Investors buy them with the hope of selling them later at a higher price. Even by purchasing a single share, an investor becomes a partial owner of the company.

This ownership grants specific rights, such as receiving dividends (a portion of the company’s profits, although not always guaranteed) and participating in shareholder meetings.

However, buying shares comes with risks. Share prices are closely tied to the company’s performance. If the business thrives, the price typically increases. If it struggles, the cost can fall – sometimes dramatically. In extreme cases, shares can become worthless.

This is because share prices are determined by the balance of supply and demand. The more people want to buy a share – perhaps because the company has released a revolutionary product or reported record profits – the more its price rises. If demand drops, the price falls.

A helpful analogy: how much would you pay for a bottle of water in a city? Probably not much – it’s easy to find. But how much would you pay for that same bottle in the middle of the desert?

What are bonds?

Bonds differ fundamentally from shares. When an investor buys a bond, they do not become a shareholder; instead, they become a creditor. What does that mean in practice?

Put simply, a company issues bonds to raise capital, just as it does when issuing shares, but the mechanism is different. Buying a bond is similar to lending money to the company. The investor agrees to lend a specific amount, understanding that it will be repaid after a set period (e.g., five or ten years). In return, the company pays the investor regular interest payments, commonly referred to as coupons.

These coupons function like an interest rate, and the amount paid often reflects the company’s financial stability and trustworthiness. A well-established, transparent, and profitable company will typically offer a lower interest rate than a riskier, less stable one.

The same principle applies to government bonds, which a national government issues to finance public spending. For example, Italian government bonds tend to offer lower interest rates than Moldovan bonds, because Italy is generally considered more creditworthy and therefore less risky for investors.

Compared to shares, bonds are considered safer and more stable. However, this usually means they offer lower potential returns. As always, the general rule applies: higher risk, higher reward – lower risk, lower return.

What are indices?

This bonus section ties together both shares and bonds. So, what exactly is an index?

An index is simply a group or “basket” of listed companies (in the case of shares) or debt instruments (in the case of bonds), grouped according to specific criteria.

What kind of criteria? For example:

  • The S&P 500 includes the 500 largest publicly traded companies in the United States.
  • The NASDAQ-100 tracks the 100 largest non-financial companies listed on the NASDAQ.
  • The S&P Global Clean Energy Transition Index includes 100 companies worldwide that are involved in the clean energy sector.

For bonds, indices might group securities by maturity date, such as all government bonds with a 10-year or 30-year term.

These indices are useful benchmarks. They help investors assess overall market performance, track sectors, and compare their portfolios against broader trends.

Who operates on the market? The main players

Now that we’ve explored the tools and rules of the stock market, it’s time to understand who actually takes part.

Listed Companies

First of all, there are the listed companies themselves – without them, the stock market wouldn’t exist. As we’ve seen, these companies launch themselves into the financial markets to raise capital for expansion, innovation, or operations.

Investors: institutional and retail

Next, we have the investors, who buy shares and bonds in the hope of growing their capital. Investors can be categorised into two main groups: institutional investors and retail investors.

  • Institutional investors are the heavyweights of the financial system. They manage enormous sums of money and can influence the price trends of individual companies. This group includes mutual funds, pension funds, and insurance companies, which invest their clients’ money to generate returns and earn management fees in the process.
  • Retail investors, on the other hand, are individual savers who invest their own capital in the hope of earning a return on investment. If you’re reading this, chances are you already are – or soon will be – a retail investor. If so, we recommend checking out our blog for helpful content on avoiding common mistakes, understanding diversification, and overcoming cognitive biases in finance.

Financial intermediaries

Let’s now turn to the players who make investing possible: the financial intermediaries.

These operators form the essential bridge between those who issue shares and bonds and those who buy them. For various technical, legal, and security reasons, it’s not possible to trade directly on the stock exchange without going through these entities. In practical terms, we’re talking about banks and online brokers, which provide access to financial markets in exchange for commissions.

You might wonder, perhaps with mild irritation, “Why am I forced to go through an intermediary just to buy a share in Coca-Cola?” The answer is simple: for the same reason you need a driving licence to operate a car. You can’t just jump behind the wheel and press the pedals at random.

You might rightly argue that once you’ve got your licence, you can drive yourself. True – but can you build the car?

That’s the point. Building the “car” in this case means having ultra-secure IT systems, legal authorisations, direct exchange connections, and regulatory compliance. It’s a complex, expensive, and highly regulated activity – which is why supervisory authorities require only authorised intermediaries to operate in this space.

Supervisory authorities

Speaking of oversight, let’s talk about the supervisory authorities – the referees of the financial world. If the stock market were a football match, these are the officials ensuring that the game is played fairly and in accordance with the rules.

These authorities may be national, such as the SEC in the United States, CONSOB in Italy, or the FCA in the UK, or supranational, like ESMA (European Securities and Markets Authority) in the EU.

Their key responsibilities include:

  • Investor protection – ensuring that intermediaries act reasonably and responsibly towards consumers;
  • Market transparency – requiring listed companies to publish relevant information such as financial reports, quarterly results, and even executive changes;
  • Fair trading – monitoring markets to detect and sanction unfair practices like insider trading, where individuals trade using confidential or privileged information.

But you never stop learning.

In this article, we aim to provide an overview of the stock market, outlining its key components and how it operates. That said, what you’ve just read is likely just the tip of the iceberg.

Suppose you’ve landed here fresh from watching The Wolf of Wall Street, dreaming of sipping Martinis on a sun lounger in a luxury resort in the middle of the Pacific within a year, just like the next self-proclaimed guru. In that case, our advice is this: stay grounded and start learning seriously.

In the meantime, why not subscribe to our Telegram channel or even sign up directly to the Young Platform by clicking below? We regularly share guides, tips, and financial updates to help you stay informed and avoid being caught off guard.

See you next time!

Posted on

How the Stock Exchange works, explained simply

How does the stock market work?

NYSE, Nasdaq, LSE – what do these names mean? They refer to some of the world’s leading stock exchanges. But what exactly is a stock exchange, and how does it work?

The stock exchange, more commonly known as the stock market, is a financial marketplace where shares, bonds, and other securities are bought and sold. Once considered the domain of financial insiders, the stock market has now entered popular culture, thanks in part to numerous cult films that have graced cinema screens since the 1970s.

But what is the history of the stock exchange? What are its key components? And who are the leading players involved? Let’s take a closer look.

How and when was the stock exchange created?

The earliest recorded evidence of trading, lending, and deposit activities dates back to the second millennium BC, inscribed in the Babylonian Code of Hammurabi. Similar financial practices were also found among the ancient Greeks, Etruscans, and Romans.

However, these early forms of financial exchange cannot truly be considered a ‘stock market’ as we understand it today. The first genuine stock exchange was established in Amsterdam, in the Netherlands, around the 17th century.

The Middle Ages

In the late Middle Ages, the world of finance began to take on a more structured form with the emergence of the first banking institutions. Italy – particularly the cities of Genoa, Venice, and Siena – was, for many years, the central financial hub of Europe.

Around the 14th century, a new trading centre emerged that attracted merchants from across the continent, helping to shape a financial system that was still quite rudimentary. This was in Bruges, Belgium, specifically in the Ter Buerse Palace, built by the aristocratic Van der Bourse family. It was here, where merchants gathered to exchange goods and currencies, that the name ‘Borsa’ (stock exchange) originated.

Later, essential exchanges were established in Antwerp, Lyon, and Frankfurt, marking a shift from private to public management, with increasingly clear and stricter regulations.

The Modern Age

In the 17th century, the Amsterdam Stock Exchange became the most important in Europe – and likely in the world. This period also saw the creation of the first joint-stock companies, which significantly boosted the trading of securities, including government bonds and commodities.

The 18th century witnessed the rise of international trade, as well as the emergence of speculative bubbles. The most famous was the South Sea Bubble in England (1710–1720), when share prices soared before collapsing, causing heavy losses. It led to the Bubble Act, a law aimed at curbing speculation by limiting the formation of new companies.

Meanwhile, in New York, a group of merchants began meeting under a plane tree on Wall Street to trade securities – a humble beginning for what would become a future global financial centre.

The Industrial Revolution and the modern stock market

During this period, the stock market became crucial not only for company growth but also for the economic development of entire nations. London and Paris became key financial markets, funding industrial projects, infrastructure, and even colonial and military ventures.

In 1817, the New York Stock Exchange (NYSE) was officially established. Over time, it would grow to become the world’s largest stock exchange by market capitalisation.

The 20th century: successes and severe financial crises 

By 1900, the stock market had become the beating heart of the capitalist system. Economics and finance were now deeply interconnected. It was a century marked by sharp contrasts, alternating between periods of remarkable economic growth – such as the Roaring Twenties and the post-World War II boom – and severe financial crises, including the Great Depression of 1929 and Black Monday in 1987.

This volatility highlighted the need for regulation. Supervisory authorities such as the SEC (Securities and Exchange Commission) in the United States and Consob (National Commission for Companies and the Stock Exchange) in Italy were established to oversee financial markets, which were now dealing with enormous capital flows.

In 1971, the Nasdaq was founded, marking the beginning of the stock market’s transition from a physical trading floor, filled with shouting and hand signals, to an electronic system driven by computers and algorithms.

The digital age

Fast forward to today: the rise of the Internet has transformed how the stock market functions. It has brought greater accessibility, instantaneous transactions, unprecedented capital mobility, and the emergence of entirely new markets.

Now that we’ve explored its history, let’s take a closer look at how the stock market works today.

How does the stock market work?

To understand how the stock market works, it’s first essential to understand what it is. The stock market can be described as the financial engine that links the world of businesses with that of savers and investors. On one side, companies seek capital to fund their growth – whether by opening new branches, developing new products, or hiring staff. On the other hand, individuals look for opportunities to grow their savings. This is where the concepts of primary and secondary markets come into play.

The primary market is where shares are created. When a company lists on the stock exchange for the first time, it sells its shares directly to investors – a process known as an IPO (Initial Public Offering). Investors, by purchasing these shares, provide the company with the necessary funds to grow.

The secondary market, on the other hand, is the market in which existing shares are bought and sold between investors on a daily basis. Companies do not earn money from these transactions, but the market allows investors to profit from rising prices.

But shares are not the only financial instruments traded on the market. A large portion of investments also involves bonds. Understanding the difference between the two is fundamental.

What are shares?

As mentioned earlier, shares represent small units of ownership in a company. Investors buy them with the hope of selling them later at a higher price. Even by purchasing a single share, an investor becomes a partial owner of the company.

This ownership grants specific rights, such as receiving dividends (a portion of the company’s profits, although not always guaranteed) and participating in shareholder meetings.

However, buying shares comes with risks. Share prices are closely tied to the company’s performance. If the business thrives, the price typically increases. If it struggles, the cost can fall – sometimes dramatically. In extreme cases, shares can become worthless.

This is because share prices are determined by the balance of supply and demand. The more people want to buy a share – perhaps because the company has released a revolutionary product or reported record profits – the more its price rises. If demand drops, the price falls.

A helpful analogy: how much would you pay for a bottle of water in a city? Probably not much – it’s easy to find. But how much would you pay for that same bottle in the middle of the desert?

What are bonds?

Bonds differ fundamentally from shares. When an investor buys a bond, they do not become a shareholder; instead, they become a creditor. What does that mean in practice?

Put simply, a company issues bonds to raise capital, just as it does when issuing shares, but the mechanism is different. Buying a bond is similar to lending money to the company. The investor agrees to lend a specific amount, understanding that it will be repaid after a set period (e.g., five or ten years). In return, the company pays the investor regular interest payments, commonly referred to as coupons.

These coupons function like an interest rate, and the amount paid often reflects the company’s financial stability and trustworthiness. A well-established, transparent, and profitable company will typically offer a lower interest rate than a riskier, less stable one.

The same principle applies to government bonds, which a national government issues to finance public spending. For example, Italian government bonds tend to offer lower interest rates than Moldovan bonds, because Italy is generally considered more creditworthy and therefore less risky for investors.

Compared to shares, bonds are considered safer and more stable. However, this usually means they offer lower potential returns. As always, the general rule applies: higher risk, higher reward – lower risk, lower return.

What are indices?

This bonus section ties together both shares and bonds. So, what exactly is an index?

An index is simply a group or “basket” of listed companies (in the case of shares) or debt instruments (in the case of bonds), grouped according to specific criteria.

What kind of criteria? For example:

  • The S&P 500 includes the 500 largest publicly traded companies in the United States.
  • The NASDAQ-100 tracks the 100 largest non-financial companies listed on the NASDAQ.
  • The S&P Global Clean Energy Transition Index includes 100 companies worldwide that are involved in the clean energy sector.

For bonds, indices might group securities by maturity date, such as all government bonds with a 10-year or 30-year term.

These indices are useful benchmarks. They help investors assess overall market performance, track sectors, and compare their portfolios against broader trends.

Who operates on the market? The main players

Now that we’ve explored the tools and rules of the stock market, it’s time to understand who actually takes part.

Listed Companies

First of all, there are the listed companies themselves – without them, the stock market wouldn’t exist. As we’ve seen, these companies launch themselves into the financial markets to raise capital for expansion, innovation, or operations.

Investors: institutional and retail

Next, we have the investors, who buy shares and bonds in the hope of growing their capital. Investors can be categorised into two main groups: institutional investors and retail investors.

  • Institutional investors are the heavyweights of the financial system. They manage enormous sums of money and can influence the price trends of individual companies. This group includes mutual funds, pension funds, and insurance companies, which invest their clients’ money to generate returns and earn management fees in the process.
  • Retail investors, on the other hand, are individual savers who invest their own capital in the hope of earning a return on investment. If you’re reading this, chances are you already are – or soon will be – a retail investor. If so, we recommend checking out our blog for helpful content on avoiding common mistakes, understanding diversification, and overcoming cognitive biases in finance.

Financial intermediaries

Let’s now turn to the players who make investing possible: the financial intermediaries.

These operators form the essential bridge between those who issue shares and bonds and those who buy them. For various technical, legal, and security reasons, it’s not possible to trade directly on the stock exchange without going through these entities. In practical terms, we’re talking about banks and online brokers, which provide access to financial markets in exchange for commissions.

You might wonder, perhaps with mild irritation, “Why am I forced to go through an intermediary just to buy a share in Coca-Cola?” The answer is simple: for the same reason you need a driving licence to operate a car. You can’t just jump behind the wheel and press the pedals at random.

You might rightly argue that once you’ve got your licence, you can drive yourself. True – but can you build the car?

That’s the point. Building the “car” in this case means having ultra-secure IT systems, legal authorisations, direct exchange connections, and regulatory compliance. It’s a complex, expensive, and highly regulated activity – which is why supervisory authorities require only authorised intermediaries to operate in this space.

Supervisory authorities

Speaking of oversight, let’s talk about the supervisory authorities – the referees of the financial world. If the stock market were a football match, these are the officials ensuring that the game is played fairly and in accordance with the rules.

These authorities may be national, such as the SEC in the United States, CONSOB in Italy, or the FCA in the UK, or supranational, like ESMA (European Securities and Markets Authority) in the EU.

Their key responsibilities include:

  • Investor protection – ensuring that intermediaries act reasonably and responsibly towards consumers;
  • Market transparency – requiring listed companies to publish relevant information such as financial reports, quarterly results, and even executive changes;
  • Fair trading – monitoring markets to detect and sanction unfair practices like insider trading, where individuals trade using confidential or privileged information.

But you never stop learning.

In this article, we aim to provide an overview of the stock market, outlining its key components and how it operates. That said, what you’ve just read is likely just the tip of the iceberg.

Suppose you’ve landed here fresh from watching The Wolf of Wall Street, dreaming of sipping Martinis on a sun lounger in a luxury resort in the middle of the Pacific within a year, just like the next self-proclaimed guru. In that case, our advice is this: stay grounded and start learning seriously.

In the meantime, why not subscribe to our Telegram channel or even sign up directly to the Young Platform by clicking below? We regularly share guides, tips, and financial updates to help you stay informed and avoid being caught off guard.

See you next time!

Posted on

Diversification: what it is and why it is important 

Diversification

Diversification is one of the fundamental concepts of investing, even though too many people dismiss it. But what is it? And why is it so important? 

Diversification is a fundamental principle that should guide the investment strategy of anyone who wants to enter the world of crypto. It is a concept that belongs to traditional finance, but one that has accompanied humanity throughout the entire process of civilisation. In this article, we will try to answer two questions that are as simple as they are comprehensive: what is diversification? And why is it so important?

Diversification: what is it and what does it mean?

In finance, diversification is defined as a strategy or fundamental principle for minimising risk: in concrete terms, it means spreading financial resources across a diverse range of assets, rather than concentrating capital on a single investment. The prime example, the timeless classic used by those who want to explain this concept in a simple way, is that of eggs in a basket. More precisely, the phrase ‘don’t put all your eggs in one basket!‘, accompanied by an index that swings back and forth, solemn as an oracle. 

Joking aside, the comparison is apt: diversification means avoiding putting all your eggs in the same basket. The reason is simple: if all your eggs are in one basket and, unfortunately, it slips out of your hands, you’ll end up with an inedible omelette. In other words, you would have lost everything. But if the same number of eggs had been wisely distributed across several baskets, you would have lost the contents of one of them, preserving the rest. Similarly, as you can easily understand, spreading your investments across several different assets greatly reduces the risk of losing everything in one fell swoop. And your portfolio will thank you for it.

If you think about it, as we mentioned in the introduction, this rule has been around for centuries, since the dawn of civilisation. As early as the Neolithic period, communities raised several types of livestock at the same time – including cows, sheep and goats – in order to have different qualities of food and material resources available, but also to prevent, for example, a single disease from wiping out all their animals. Even during the Middle Ages, farmers understood the importance of growing several types of cereals using a three-year rotation system. The advantages were obvious: improved soil fertility, increased overall production and reduced risk of famine, as losses caused by a bad harvest were offset by the others. 

Among other things, diversification also determines our diet. Obviously, it would be wonderful to eat pizza every day, but it is essential to alternate with healthier, more boring foods to avoid digging our own graves. In short, if diversification guides every aspect of human life, why shouldn’t it do the same for our investments?

Diversification: Why is it important?  

Diversification, as previously explained, is an essential criterion from a conservative perspective, i.e. risk reduction. At this point, one might rightly object: ‘I don’t care about risk, I want to put all my money on that meme coin and become a millionaire in three days’. Fair enough, but this is not investing; it is gambling, and the chances of winning when gambling are extremely low. Returning to investing, diversification also makes sense from a profit perspective, as it allows you to avoid missing out on the asset or assets of the decade. 

Let’s take a concrete example from the internet megatrend of the early 2000s, just after the dot-com bubble burst. At that time, the main use case for the internet was search, and Google was the undisputed king. You could have legitimately thought that the Californian company was the only horse worth betting on, as it dominated almost non-existent competition. Today, that choice would have undoubtedly proven you right, as Google’s share price has grown by more than 6,000%, but you would have kicked yourself. Why? By viewing the internet as a tool designed exclusively for online search, you would have missed out on other companies such as Netflix and Amazon, which have outperformed Google by carving out their own slice of the market. 

Diversifying in the crypto world

Diversification in the world of cryptocurrencies follows the dynamics of the example just described: it depends on how you understand blockchain and its use cases. Bitcoin is, without a doubt, the dominant player in this world, as it alone accounts for more than 64% of the market. However, its usefulness is ‘limited’ – for now – to payments and being a store of value, although BTCFi could show promise. So, if you believe that blockchain will not go beyond Bitcoin, then it makes sense to invest everything in it, at your own risk. 

It is undeniable, however, that blockchain is slowly but surely making its way into other strategic sectors, and the future could hold surprises in this regard. The key point is to take a step back and look at the situation as a whole: don’t focus on the present so as not to be misled by heuristics and cognitive biases, but, as the philosopher Baruch Spinoza would say, consider things sub specie aeternitatis – in the light of eternity – in an absolute and universal sense. This is precisely what diversification means: avoiding overexposure to a single cryptocurrency, both to reduce risk and to avoid missing out on huge opportunities such as Ethereum, which rose by 1,880% between 1 January 2020 and 1 January 2025. 

Clearly, in order to invest wisely, you need to stay up-to-date and stay on top of what is happening in this constantly evolving world.

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AI and energy: the integration of the future?

AI and Energy

Artificial intelligence and energy together could revolutionise the energy sector. How? What are the predictions for the future? 

Strategically integrated, artificial intelligence and energy could revolutionise the energy sector in every way, from optimising existing structures to innovating in crucial technological areas. In this article, we will analyse the current situation, experts’ predictions for the future and the challenges that this interaction will inevitably face. 

Artificial intelligence and energy: why is reflection necessary? 

Artificial intelligence and energy must be considered together, as two sides of the same coin, due to their dual and symbiotic relationship: AI needs energy, and therefore the energy sector needs the potential of AI to evolve and innovate in a context of constantly increasing demand.  

The relevance of the topic is such that the IEA (International Energy Agency), an intergovernmental organisation working for global energy security and the promotion of sustainable energy policies, published a report in April 2025 entitled ‘Energy and AI‘. In these 304 pages, the aim is to demonstrate to the world a very clear thesis: the revolutionary potential of artificial intelligence must be exploited to maximise innovation and efficiency in a strategic sector such as energy. This integration, says the IEA, is essential to optimise, rethink and renew a system that, day after day, must meet the growing needs of the population, industry and services.

Now that the reasons are clear, it is time to delve deeper to answer specific questions: how much do AI data centres consume – and will they consume in the future? How will demand be met? Furthermore, how can AI help the energy sector? What will be the main challenges? Let’s see how the IEA experts responded.

Why does artificial intelligence need the energy sector?

The answer to this question, as you might guess, is simple: because it consumes – a lot – and will consume more and more as it becomes more widespread in various areas of daily life. To put it another way, AI could represent a revolution comparable to the discovery of electricity, precisely because of its status as a general-purpose technology. Apparently, Wall Street is well aware of this, given that between the launch of ChatGPT in November 2022 and the end of 2024, approximately 65% of the growth in the market cap of the S&P 500 is attributable to companies linked to artificial intelligence. This percentage is roughly equivalent to $12 trillion (twelve thousand billion) – also worth noting is the interest in the Crypto AI category, as in the case of Grayscale. 

As in the most classic of circular dynamics, such a massive injection of capital has triggered an investment rush, with major tech companies planning to spend up to $300 billion on artificial intelligence-related assets, facilities and equipment in 2025 alone. Of course, much of this funding is absorbed by data centres, which are essential for the training and implementation of AI, but are extremely energy-intensive. 

How much do data centres consume?

Data centres, defined as a complex of servers and storage systems for data processing and storage, currently account for around 1.5% of global electricity consumption, or 415 TWh (terawatt hours): a data centre designed for AI, for example, can require the same amount of electricity as 100,000 average households, while those under construction – significantly larger – could be up to 20 times that amount. 

Looking ahead, from 2017 to today, data centres have increased their electricity consumption by 12%, which is four times faster than total global consumption. This means that if the planet Earth has increased its electricity demand by 3% since 2017, data centres have required four times that rate of growth. Needless to say, the most important driver of this increase is artificial intelligence, followed by digital services, which are also in high demand. In all this, the IEA reports that, in 2024, the top three global consumers will be the United States (with 45% of the total), followed by China (25%) and the European Union (15%).

So, if data centre consumption currently stands at 415 TWh, the IEA report estimates that this figure will double by 2030, reaching around 945 TWh, slightly more than the total consumption of Japan. As for projections for 2035, the report refers to a ‘scissors effect’, as it includes variables related to the development of efficient energy-saving solutions in its calculations. In any case, the range is from a minimum of 700 TWh to a maximum of 1,700 TWh. 

This incredible increase is linked both to the greater ‘physical presence’ of data centres around the world and to their intensified use, assuming that, in the future, AI will spread to every corner of the cities in which we live. In fact, in terms of consumption, the most significant impact is during the operating phase rather than during production or configuration: a latest-generation 3-nanometre chip requires approximately 2.3 MWh (megawatt hours) per wafer – the circular slice of silicon on which the circuits are manufactured – to be produced, 10 MWh to be configured and 80 MWh to operate during a five-year life cycle.  

How can this demand be met in the future?

The report answers in the only way possible, namely with a diversified range of energy sources. In particular, in the baseline scenario – obtained from an analysis of current conditions, without including optimistic or pessimistic variables – renewables and natural gas should drive this energy mix, with the former covering about half of demand (450 TWh) and the latter accounting for almost a quarter (175 TWh). Next comes nuclear energy, which, with the implementation of small modular reactors (SMRs), could contribute slightly less than natural gas. 

Let’s now shift our focus to the energy sector. 

Why does the energy sector need artificial intelligence?

Because, as is evident, artificial intelligence is capable of optimising every aspect of the energy sector: exploration, production, maintenance, safety and distribution. In short, applying AI to the energy sector, as we mentioned at the beginning of this article, could revolutionise it. Let’s look at some specific cases: 

AI and energy together in the oil and gas industry

The report informs us that in this area, the adoption of the winning combination of artificial intelligence and energy has occurred ahead of the average. The main uses relate to the optimisation of reservoir exploration and identification processes, the automation of hydrocarbon extraction activities – well management, flow control and fluid separation – but also everything related to safety and maintenance: leak detection, preventive maintenance and emission reduction. In the future, the IEA reports, this integration could translate into a 10% saving in operating costs in deep waters. 

Artificial intelligence in the electricity sector

In the field of electricity, the IEA report predicts that AI will play a key role in balancing networks, which are becoming increasingly digitised and decentralised – as is the case with rooftop solar panels. Specifically, AI could improve the forecasting and integration of renewable energy generation by reducing curtailment – forced reduction – and, therefore, emissions. In simple terms, this means that artificial intelligence, thanks to its ability to analyse endless series of data, would be able to make more accurate predictions about renewable energy production (which is influenced by the weather) and average demand. This would make it possible to integrate renewable energy with other energy sources in a more precise and intelligent way, avoiding unnecessary waste associated with the arbitrary blocking of excess electricity (curtailment). 

There is also an interesting issue related to increasing the efficiency of existing networks. In a nutshell, integrating AI would unlock up to 175 GW (gigawatts). How? Through the use of remote sensors and management tools capable of reading and processing huge amounts of data in real time. Currently, electricity grids – or transmission lines – carry a maximum amount of electricity based on static and conservative conditions, calculated with a very wide safety margin: during the summer, for example, air temperature and wind are measured conservatively to prevent excessive electrical flow from causing cables to melt or similar problems. The result is that, most of the time, networks operate at low capacity. With AI-based management, these conditions would change from static to dynamic – Dynamic Line Rating, DLR – and allow real-time control of the load capacity of the networks themselves, with positive effects on the amount of energy circulating.   

Finally, artificial intelligence applied to the electricity sector could make a concrete contribution to network fault detection and preventive maintenance of power plants. In the first case, by speeding up problem localisation operations, with a 30-50% reduction in outage duration. In the second, by optimising the identification of potential damage, giving advance warning of the need to replace crucial components, with estimated savings of $110 billion by 2035.

AI in industry, transport and building heating

To conclude this section, the report briefly touches on the three areas belonging to the macro-category of ‘end uses’, i.e. the uses to which energy is put after distribution to end users. With regard to industry, the IEA quantifies the benefits of implementing AI applications as savings equal to Mexico’s total consumption today. Then, in transport, it talks about cuts equivalent to the energy used by 120 million cars, thanks to traffic and route optimisation. Finally, AI could improve the management of heating systems in civil and non-civil buildings, with an expected reduction in electricity use of around 300 TWh – the amount produced by Australia and New Zealand in a year. 

Artificial intelligence and energy: innovations

Artificial intelligence can contribute significantly to energy innovation as it is capable of rapidly searching for molecules that can improve existing tools. Thanks to the combination of predictive and generative models and endless academic literature, AI exponentially accelerates the process of selecting candidates and creating suitable prototypes. In particular, four key areas would benefit from the potential of AI:

  • Cement production, making the research and development of new mixtures more efficient and reducing the use of clinker, a highly polluting component that forms the basis of cement itself.
  • The search for CO2 capture materials, such as MOFs (Metal Organic Frameworks), reduces energy consumption and costs associated with CCUS (Carbon Capture, Utilisation and Storage, the process of capturing CO2 for reuse or storage. 
  • The design of catalysts for synthetic fuels, i.e. substances that accelerate chemical reactions to produce low-emission fuels. The difficulty in designing this type of catalyst lies in the infinite number of possible combinations between molecules, a process that AI can greatly accelerate. 
  • Battery research and development, facilitating material testing, performance prediction, production optimisation and end-of-life management processes. 

What are the challenges of integrating AI and the energy sector?

The report concludes by presenting, as it should, the obstacles that this ambitious project will face. First, the IEA warns us that increasing digitalisation, while having positive implications for energy security, inevitably also brings with it specific risks, such as vulnerability to cyberattacks. A fundamental problem also concerns the security of energy supply chains: chips, as is well known, require large volumes of rare earths and critical minerals, which are concentrated in a few areas of the world – China controls 98% of gallium refining. A third issue relates to the decoupling of investment in data centres and investment in energy infrastructure, which is vital for the functioning of the system. Finally, there is the issue of the lack of digital skills and qualified personnel, coupled with poor dialogue between institutions, the tech sector and the energy sector. 

I don’t know about you, but after reading and analysing this report, we are fairly convinced that artificial intelligence will also rule in this sector: burdens and honours, risks and opportunities. But then again, nothing ventured, nothing gained.  

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Lithium: what is it used for? Batteries, medicines and other uses

Lithium

What is lithium used for? What are lithium batteries? How does lithium work as a medicine? Let’s find out why this metal is in such high demand!

Lithium is a silvery-white metal that, in recent years, has become a critical resource in high demand by world superpowers and beyond. The reasons behind this incredible growth in demand can be found in its many uses: batteries, medicines, ceramics, lubricating greases and more. In this article, we will explore a mineral that has become so popular in just a few years. Let’s get started!

Lithium: what it is, who controls it and who is fighting over it

Lithium is the lightest and least dense alkali metal on Earth. It is silver-white and oxidises on contact with water or air, taking on a darker colour. It has unique physical characteristics that make it highly sought after in various fields, as we will see below. Among these, lightness, high energy density – i.e. the ability to store a lot of energy in a small space – and reactivity are the most important for the industrial world. 

But how does the lithium supply chain work? What is the geopolitics behind this metal? To answer these questions, we have read and studied the report by the IEA (International Energy Agency) entitled ‘Global Critical Minerals Outlook’, published in May 2025. What do the experts tell us?

Who are the leading producers of lithium?

The first significant figure that highlights the importance of this metal concerns its production: in 2024, global lithium extraction recorded a substantial increase of 35% or more, for a total of 255 kilotonnes (kt) – by way of comparison, the world’s tallest skyscraper, the Burj Khalifa, weighs around 110 kt. The top five lithium producers in the world are unusual, as they include countries that are not often heard of. 

Australia ranks first, with 90 kt of lithium extracted in 2024, taking the gold medal by a wide margin. According to the IEA, this gap is set to widen: by 2030, mining of this metal is expected to grow by a further 30-35%, reaching 124 kt. Second place goes to China, with 57 kt in 2024, while the last step on the podium goes to Chile, which produced 49 kt of lithium last year, earning the status of dominant producer in Central and South America. For fourth place, we have to move to the African continent, more precisely to Zimbabwe, with 23 kt. Finally, in last place is another South American country, Argentina, which extracted 13 kt of lithium from its mines. In this regard, the IEA reports that this country increased production by 65% in 2024, to become an even more important player by 2030. 

Another figure worth mentioning concerns the concentration of mining activities: while in 2024 the top three producers accounted for 77% of global lithium production, by the end of this decade, the IEA expects this share to fall to 67%. Such a change indicates a certain geographical diversification, reflecting a widespread desire to enter this market. Analysts believe that by 2030, the share produced by the ‘rest of the world’ will rise from the current 17 kt to 49 kt. In addition, the amount of lithium extracted globally will double over the next five years, reaching a total of 471 kt. 

Once lithium has been extracted, who is responsible for refining it?

In 2024, according to the report, global production of refined chemicals was 242 kt. The discrepancy between lithium extracted (255 kt) and refined lithium is, of course, due to the inherent and inevitable inefficiencies of purification processes. In any case, 96% of these activities are concentrated in the top three countries in the refiner rankings, but it is believed that by 2030, the oligopoly will lose some market share, falling to 85%. Speaking of rankings, let’s take a look at the top five.

In first place is China, in a position of absolute dominance, which in 2024 processed 170 kt of lithium chemicals: the People’s Republic alone controls 70% of total global refining. It has no intention of stopping, as this figure is expected to rise to 277 kt by 2030. Second place goes to Argentina, which refines the same amount of lithium that it extracts, i.e. 13 kt. The bronze medal goes to Australia, a country that is only interested in extraction. Only 4.5% of the lithium collected in the fantastic land of kangaroos is refined, i.e. 4 kt. In fourth place are the United States and South Korea, with 3 kt of lithium each. With 1 kt produced in 2024, the last place in this special ranking goes to Japan.

Returning quickly to China, the IEA states that, despite having a near-monopoly on refining processes, the Dragon could lose a significant share of the market in ten years. Specifically, its share could fall from 70% to 60% by 2035. This is also because, according to forecasts, Argentina and the United States are expected to increase their refined lithium kt by 270% and 800% respectively, i.e. from 13 to 49 kt and from 3 to 27 kt.

The lithium market: what is the demand? 

In 2024, lithium saw a 30% increase in demand: the energy sector, of course, drove this increase, precisely because of the fundamental role this metal plays in the construction of batteries, electric machines and components for renewables. 

As for future demand, the IEA envisages three different scenarios with three different types of output. These scenarios are called STEPS, APS and NZE: the STEPS (Stated Policies Scenario) is the baseline scenario and represents the future as a continuation of the present, with current energy policies remaining in place; the APS (Announced Pledges Scenario) assumes that governments will achieve their energy and climate targets, such as phasing out fossil fuels and increasing renewable energy; the NZE (Net Zero Emission) scenario depicts a future in which the global energy sector has achieved net zero emissions by 2050.

In the first scenario – STEPS – lithium demand is expected to rise to 700 kt by 2035 and 1,160 kt by 2050, growing almost fivefold compared to 2024. In the second and third scenarios – APS and NZE – demand would be 30% and 20% higher than in the baseline scenario, reaching 1,500 kt and 1,400 kt, respectively. 

And the price? 

The price of lithium is a topic that may seem counterintuitive at first glance: since 2023, the value of this metal has fallen by 80%. One might wonder how this is possible, given that there was a 30% increase in demand in 2024 alone and that demand is set to increase fivefold over the next twenty years. The answer, as the law of supply and demand dictates, lies precisely in supply, which has grown exponentially and is set to continue on this trend.

Lithium is the 25th most abundant material on Earth and, unlike gold and Bitcoin, it is not scarce. This means that if demand rises, even by 30% in a year, supply adjusts more or less easily, and the price remains stable or even falls in the event of overproduction. However, to give a couple of figures, the cost of lithium in a typical 57 kWh battery – a battery for a common medium-sized electric car – has fallen from $67 to $15.   

Since we were talking about batteries and electric cars, let’s move on to the next section, which covers the main use cases.

What is lithium used for? The main use cases

As we have pointed out several times, lithium owes its popularity mainly to the energy sector, the primary driver of demand, particularly for electric car batteries. However, there are other, less well-known but essential applications. The pharmaceutical industry, for example, uses lithium as a drug in the treatment of specific psychiatric disorders. In contrast, the manufacturing sector uses it in glass and ceramics processing, as well as in machine lubrication. Let’s look at each case individually. 

What are lithium batteries?

Lithium batteries, or more correctly, lithium-ion batteries, are highly functional batteries because they are smaller, lighter, and more powerful than traditional batteries, such as lead batteries. This type of battery is such an important innovation that in 2019, its three inventors received the Nobel Prize in Chemistry. 

Today, lithium batteries power smartphones, laptops, electric cars and more, precisely because this metal has a particular physical characteristic that gives it a significant advantage over its competitors: high energy density. Put simply, this means that, for the same weight or volume, lithium batteries can store and release much more energy than older, more conventional batteries. What’s more, they are rechargeable—a win on all fronts. 

How does a lithium battery work? Without going into too much detail, these batteries work thanks to lithium ions, which is why it is more accurate to call them lithium-ion batteries: an ion, in a nutshell, is an atom that has lost an electron and therefore takes on a positive charge. The battery is composed of two main elements, the cathode and the anode. What happens, explained in straightforward terms, is that during the discharge phase, when the battery supplies energy, the lithium ions move from the anode to the cathode, generating electricity. 

In short, thanks to the invention of three scientists, we are now able to produce increasingly compact, lightweight and efficient technological devices. 

Lithium as a drug 

Lithium is mainly used in medicine to treat bipolar disorder, a psychiatric condition characterised by extreme mood swings, in which the patient alternates between states of intense euphoria and irritability – episodes of mania and hypomania – and periods of deep depression. Thanks to its properties, this particular metal is used to reduce the switches between the two moods as much as possible and thus stabilise mood. 

The effectiveness of lithium as a drug in this field was discovered in the late 1940s by John Cade, an Australian psychiatrist who was captured by the Japanese during the war. The doctor noticed that some of his cellmates, due to poor nutrition, were exhibiting unusual behavioural reactions. After the war, Cade resumed his studies and discovered that lithium carbonate had a calming effect on laboratory animals. He tried this chemical compound on himself and ten patients and, documenting the treatment, noticed significant improvements in the psychiatric condition of the subjects. However, the discovery went unnoticed, but twenty years later, Danish psychiatrist Mogens Schou decided to revisit the discovery and validate it scientifically, following experimental methods. In 1970, the research was finally reviewed, accepted and validated: lithium was undoubtedly an effective drug for the treatment of bipolar disorder. 

Lithium: side effects

Like all drugs, lithium is not without side effects. The less serious ones, which do not require immediate medical attention, include stomach ache, indigestion, weight loss or gain, swollen lips, excessive salivation and itching. There are other effects for which it is advisable to seek medical attention quickly, such as severe thirst, swelling of the legs, difficulty moving, fainting, abnormal heartbeat, and severe headaches. Finally, those that require immediate medical attention include severe dizziness and blurred vision, slurred speech, severe drowsiness, nausea and vomiting. 

Other uses 

As already mentioned, lithium is also used in other sectors, such as manufacturing, industry and chemicals. Here are some examples: 

  • Glass and ceramics: Lithium is used to lower the melting temperature of glass and ceramics, resulting in significant energy and cost savings. It also has positive effects on the strength, durability and shine of the final products.
  • Lubricating greases: the industrial and automotive sectors use lubricating greases containing lithium because they are highly resistant to water and high temperatures. 
  • Organic chemistry and polymers: Some lithium compounds are frequently used by the chemical industry because of their powerful reactivity. In particular, they are essential for the manufacture of synthetic rubber.

We have come to the end of this long journey to discover this metal and the infrastructure behind its production, refining, distribution and demand. Will lithium remain as important in the future? Will other technologies replace it?

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Cobalt: The Story of an Artistic Metal

cobalt

Cobalt-chrome alloys are biocompatible and wear-resistant, making them ideal for prosthetics — both orthopaedic (knee and hip) and dental (crowns and implants).

Now, let’s move to a more relaxing subject: cobalt in art.

Cobalt Blue: A Colour That Made History

Cobalt blue was first created in the early 1800s in France, driven by both artistic and economic motives.
Until then, blue was far from a “democratic” colour. The most prized — and widely recognised — shade was ultramarine, considered the ultimate blue. However, it was extremely expensive because it was made from lapis lazuli, a precious stone imported from Afghan mines — hence “ultra-marine” — and literally worth its weight in gold.

The price was so prohibitive that painters of the time would only use it for their most important works. Whenever possible, they replaced it with a cheaper pigment, azurite. But the result was far from identical — a bit like drinking a Campari Spritz made with a knock-off Campari at a third of the price. The need was clear: a blue with the same qualities as ultramarine, but at a much lower cost.

Why and How Cobalt Blue Was Born

Enter Jean-Antoine Chaptal, the French Minister of the Interior, who tasked renowned chemist Louis-Jacques Thénard with finding a cheaper alternative to ultramarine. In 1802, Thénard discovered that by sintering cobalt monoxide with aluminium oxide at 1,200°C, he could create a mixture that met the Minister’s requirements.

From that point on, artists could experiment with a colour that had previously been too expensive to waste. The importance of having cobalt blue in large quantities was such that the famous painter Pierre-Auguste Renoir is said to have remarked: “One morning, since one of us had no black, he used blue instead: Impressionism was born.” Such a thing would have been unthinkable with ultramarine.

Monet and Renoir began to use cobalt blue consistently for shadows, abandoning black. Beyond Impressionism, other great painters embraced it in their masterpieces: Van Gogh in The Starry Night, Kandinsky in The Blue Rider, Miró in Figures at Night Guided by the Phosphorescent Tracks of Snails, to name a few. A true revolution.

An Interesting Thought: What Links Cobalt to Bitcoin?

Beyond art, the story of cobalt prompts a reflection that touches on a theme close to us at Young Platform: the centralisation of supply chains and the risks that such oligopolies bring. In short, it’s a parallel between the shift from ultramarine to cobalt blue and the transition from the gold standard to the fiat currency system.

From Ultramarine to Cobalt Blue

As we’ve seen, the introduction of cobalt blue in 1802 had a positive impact on the art world, making experimentation possible with what had been an elitist colour. However, this shade — still widely used today — is heavily dependent on cobalt extraction and refining, which are concentrated in the hands of very few players.

Leaving aside the critical ethical issues — such as child labour and human rights violations, sadly ignored by countries like the Democratic Republic of Congo and China — the logistical reality is this: 81% of global cobalt extraction and 89% of refining are controlled by just three companies.

This is dangerous because it makes the system vulnerable to both internal shocks (political instability, domestic economic issues) and external shocks (natural disasters, wars). If any of these actors halt production, the global supply chain suffers. The result is a heavy dependence on a handful of players who can effectively dictate terms.

From the Gold Standard to the Fiat Standard

Similarly, on 15 August 1971, US President Richard Nixon announced the end of the Gold Standard — the “Nixon Shock” — ending the convertibility of the US dollar into gold and moving to a fiat currency system.

In this system, still in place today, the value of a currency like the US dollar is backed only by the economic and political trust in the issuing government — in this case, the US government.

This shift, much like the cobalt example, created a more “democratic” and flexible environment. Previously, governments struggled to finance large public projects due to the gold constraint; now, they had full control over the money supply. But again, the power is centralised in the hands of a few actors — namely, central banks such as the Federal Reserve or the European Central Bank.

While such centralisation can help manage inflation and crises, it’s not without risks, especially because it relies heavily on human judgement, which is inherently fallible, as the 2008 subprime mortgage crisis demonstrated. The fate of the global economy can depend on the decisions of a handful of high-ranking officials. When those decisions are good, great. But when they’re bad…?

The Moral of the Story: Bitcoin and Decentralisation

Concentrating too much power in too few hands is never a good thing. Politics, economics, finance, housing committees, university group projects, and even five-a-side football teams work poorly when a single entity makes all the decisions.

Bitcoin was created precisely to address this: to return power to individuals and remove — or at least limit — the influence of central authorities. Its decentralised nature allows for a more democratic system, where people interact directly, without intermediaries who could control or restrict their choices.

Of course, this is just one of Bitcoin’s many qualities and real-world use cases. If this introduction has sparked your curiosity, we recommend reading our article on the history and workings of BTC to get a complete picture of the revolutionary potential of the king of cryptocurrencies.

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How to create images with artificial intelligence

images with artificial intelligence

How to create images using artificial intelligence: Where do we stand? Discover all the steps in this comprehensive guide.

If you, too, have seen the images created by artificial intelligence – and if you haven’t, who knows where you live – your crevello will have ventured an argument like this. There was a time, not so long ago, when creating an image required pencils, brushes, cameras or, for the more modern, graphics tablets and hours of painstaking patience. Then, almost out of nowhere, generative artificial intelligence exploded. Suddenly, our social feeds, company presentations and even group chats were filled with dreamy, hyper-realistic and bizarre images, all spawned by an algorithm. “You want a Van Gogh-style astronaut cat eating ice cream on Mars? Give me two minutes.”

This new frontier of digital creativity has triggered a mixture of wonder and apprehension. On the one hand, the promise of democratising art, of giving anyone the power to visualise the impossible; on the other, the fear of a future where real artists, those in the flesh, end up begging robots. But before we panic or exclaim, let us try to understand how artificial intelligence creates images.

Creating images with artificial intelligence: what’s behind the magic?

Behind the apparent wizardry of an image that comes from a simple sentence, there is a concentration of technology that, until a few years ago, was the stuff of science fiction films. We are talking about machine learning and neural networks, i.e. software that attempts to imitate the functioning of the human brain. These systems are ‘trained’ on endless databases containing billions of existing images, each accompanied by a textual description.

The models most in vogue today, such as those based on ‘Diffusion’ architectures (such as Stable Diffusion, DALL-E 3, Midjourney), learn to associate words with visual concepts. In practice, they start from a digital ‘noise’, a kind of indistinct fog, and, guided by our textual input (the famous ‘prompt’), begin to ‘sculpt’ this noise, one small step at a time, until the required image emerges. Imagine a sculptor pulling a statue out of a shapeless block of marble, only the marble is digital, and the chisel is an algorithm that has seen more works of art than any living critic. The result? Sometimes a masterpiece, other times something that looks like something out of a Dali nightmare after a heavy dinner.

How to generate images with AI: instructions for use

If you think it is enough to type ‘cat’ to make artificial intelligence create the image of a purring feline from the screen, you will be disappointed. The art of dialoguing with these AIs, known by the somewhat pretentious Anglophone term prompt engineering, is a subtle discipline, somewhere between poetry and programming.

You have to be specific, almost pedantic. You want a ‘dog’? Fine, but what breed? What is it doing? Where is it? In what light? In what pictorial style? “A golden retriever puppy sleeping blissfully in a red velvet armchair, illuminated by warm afternoon light, Renaissance oil painting style”. There, now we’re getting somewhere. 

Then there are the negative prompts, or instructions on what NOT to do: “no double tails, please”, “avoid that plastic effect”, “I beg you, no more than five fingers on each hand!”. The process is iterative: you generate, observe the result, refine the prompt, regenerate, and so on, in a loop that can lead to the perfect image or to deciding that, perhaps, a hand-drawn picture was better. At first, it is easy to get digital abominations: that ‘cat on a bike’ might turn into a Lovecraftian tangle of fur and pedal metal. But with a little practice (and a lot of patience), you can begin to tame the algorithmic beast and start creating quality artificial intelligence (AI) images.

 Lights and shadows: the pros and cons of AI-generated images

Like any self-respecting technology, image-generative AI also brings with it a wealth of opportunities and a few skeletons in the cupboard. Here is a brief summary of what, at least in our opinion, are the pros and cons of this technological breakthrough.

Pros:

  • Democratisation of creativity: anyone, even someone who draws like a three-year-old, can give visual form to their ideas. Need a logo on the fly? An illustration for a post? An inspiration for a tattoo? Ask and (maybe) you’ll get it;
  • Speed and efficiency: for designers, creatives and marketers, it is a crazy tool for brainstorming, creating moodboards, concept art, and rapid prototypes. Hours of work condensed into a few minutes;
  • New aesthetic horizons: AI can mix styles, invent perspectives, create images that a human might not conceive, opening up unprecedented art forms;
  • Pure fun: let’s face it, asking the AI to draw absurd things is often hilarious;

Cons:

  • The six-finger nightmare (and other amenities): the infamous ‘uncanny valley’ is always lurking. Hands with too many or too few fingers, faces that melt like wax, seasick perspectives, objects that defy the laws of physics. Sometimes, the results are so surreal that they themselves become an unintentional art form.
  • The fair of the generic: with the ease of use, the risk is a rising tide of images that are aesthetically pleasing but devoid of soul, all a bit the same, a bit ‘Midjourney effect’. The world is now invaded by cyberpunk kittens with a variable (but hardly ever correct) number of legs.
  • The crisis of originality: if everyone uses the same tools and maybe even similar prompts, don’t we risk a stylistic flattening?
  • But is this art?: the debate is open and heated. If a machine ‘makes’ the work, is it still art? Who is the artist? Who writes the prompt, or the algorithm? My cousin, who until yesterday was only making memes of dubious quality, now calls himself ‘an international prompt artist’, complete with a portfolio on LinkedIn.

And from a philosophical point of view?

And here the matter gets serious, because the implications go far beyond the number of fingers. The first problem, which has long been central to the debate on artificial intelligence, not only when it is used to create images, is related to copyright and the question: whose image is generated? Of the user who wrote the prompt? Of the company that created the AI? Or is it a derivative of the myriad images used for training, many of which may be copyrighted? At the moment, it’s a legal Wild West. And what about the prompting ‘in the style of [famous living artist]’? Is it homage or theft?

Then there is the work-related issue. Will artificial intelligence destroy the market for illustrators, photographers, graphic designers, or just make it more productive? We like to be optimistic, imagining a world where AI is a powerful ‘creative assistant’, freeing humans from superficial tasks and allowing us to focus on the most valuable tasks.

Let us close with the two main ethical dilemmas. The first is frightening and concerns the ease with which false but realistic images can be created with intelligence. Photos of events that never happened, faces of people stuck on the bodies of others. The implications in terms of disinformation, manipulation of public opinion, and trust in sources are enormous. Distinguishing the true from the plausible will become an increasingly challenging task.

Finally, it must be emphasised that AIs are trained on data created by human beings. If this data contains prejudices (gender, ethnic, cultural), the AI will learn and replicate them, which may lead to the creation of stereotypical images or the exclusion of certain representations. The algorithm, in short, can be as racist or sexist as the societies that nurtured it.

In short, the possibility of creating images with artificial intelligence is certainly as revolutionary as the invention of photography or digital photo editing. As we are increasingly realising, AI is an incredibly powerful tool, capable of democratising creativity, accelerating production processes, but also raising profound questions about the nature of art, work and truth itself. Like any tool, its impact – beneficial or maleficent – will depend on how we choose to use it, adjust it and integrate it into our lives. It is neither a demon to be exorcised nor a magic wand that will solve every problem. It is, more prosaically, a powerful new set of digital crayons available to humanity. Get ready for a future where, in order to understand whether your friend’s holiday photo is real or ‘prompt’, you will need a trained eye, a second coffee and, perhaps, an honorary degree in the philosophy of perception. The good (and the bad) has just begun.

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Who are the 9 richest women in the world? The 2025 ranking

The Richest Women in the World: Updated 2024 Ranking

Richest women in the world: the ranking updated to 2025

Who are the richest women in the world in 2025? Have there been any changes at the top compared to previous years? Below is the updated ranking based on net worth, which is calculated by subtracting liabilities from the total value of assets owned, including real estate, investments, cash, and businesses.

To compile this list of the world’s richest women, we refer to data from Forbes, which annually updates its rankings of the wealthiest billionaires. It’s also worth noting the Bloomberg Billionaires Index, which provides a real-time snapshot of billionaire wealth. As a result, the rankings of some of these women may fluctuate throughout the year.

Here are the 9 richest women in the world in 2025.

9. Marilyn Simons

Marilyn Simons, the widow of the renowned mathematician and investor Jim Simons, who founded the hedge fund Renaissance Technologies, served as the president of the Simons Foundation until 2021. The Simons Foundation is one of the largest philanthropic organisations in the United States.

The foundation provides scholarships and grants to support research and development in four main areas: science and mathematics, autism and neuroscience, society and culture, and life sciences.

8. Miriam Adelson

After the death of her husband, Sheldon Adelson, in 2021, Miriam Adelson inherited the majority of shares in the casino giant Las Vegas Sands. The Adelson family owns five casinos in Macau and one in Singapore, which are among the world’s wealthiest locations. With assets totalling $32.1 billion, Miriam is also a prominent philanthropist who has donated over $1 billion to medical research to date.

7. Abigail Johnson

Abigail Johnson is the seventh richest woman in the world, with assets totalling $32.7 million. She serves as the face of Fidelity Investments, the third-largest investment fund in the world, which manages approximately $5.3 trillion in assets. In January and July 2024, Fidelity, along with other investment funds, launched two exchange-traded funds (ETFs) focused on Bitcoin and Ethereum, respectively. This event marked a significant milestone for the cryptocurrency industry. Additionally, Fidelity recently announced the launch of two stablecoins in collaboration with World Liberty Financial, a decentralised finance (DeFi) project supported by the Trump family.

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6. Savitri Jindal

Savitri Jindal, with assets totalling USD 35.5 billion, is the richest woman in India. She serves as the chairman of the Jindal Group, a major player in the steel, energy, and infrastructure sectors. In addition to her business ventures, she is also involved in politics. Following the death of her husband in 2005, she was elected to the Haryana Vidhan Sabha, representing the Hisar constituency.

5. Rafaela Aponte-Diamant

Rafaela Aponte-Diamant and her husband, Gianluigi, co-founded the Mediterranean Shipping Company (MSC) in 1970. Due to their vision, MSC has become the largest shipping line in the world. Rafaela currently oversees a fleet of approximately 900 ships, with assets valued at $37.7 billion. 

4. Jacqueline Mars

Jacqueline Mars, the fourth-richest woman in the world and heir to the confectionery and food empire Mars, Inc., has a fortune of approximately $42.6 billion. She runs the family business alongside her brother, John. Mars Inc. is renowned for its popular snack brands, including M&M’s and Snickers, as well as the pet food brand Pedigree.

3. Julia Koch

Julia Koch and her children inherited a 42% stake in Koch Industries after the death of her husband, David Koch, in 2019. With assets totalling $74.2 billion, Julia Koch now leads one of the world’s largest private conglomerates, the second-largest in the United States. The company operates in various sectors, including oil, paper, and medical technology.

2. Françoise Bettencourt Meyers

Françoise Bettencourt Meyers, the heiress of the cosmetics giant L’Oréal, has lost her title as the world’s richest woman after holding it for five years. However, her fortune remains substantial at approximately $81.6 billion. She owns 35% of the L’Oréal group, which has experienced a 20% drop in share value this year due to a significant decline in sales, particularly in China. Additionally, after 20 years, Françoise Bettencourt Meyers has announced her retirement from the company’s board, handing over the reins to her son, Jean-Victor Meyers.

1. Alice Walton

Alice Walton, the daughter of Walmart founder Sam Walton, has seen her wealth increase to $101 billion, largely due to a 40% rise in the company’s stock value. Unlike her siblings, she has not taken an active role in managing the family business; instead, she has focused on her passion for art. Walton founded the Crystal Bridges Museum of American Art, which features works by renowned artists such as Andy Warhol, Georgia O’Keeffe, and Mark Rothko.

This ranking highlights how some of the world’s richest women have diversified their investments across various sectors, including technology, fashion, mining, and art. Whether they are successful entrepreneurs or heirs to substantial fortunes, these women continue to make a lasting impact in the global business world.

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