
Give a more longer term perspective of Economic trends and the Macroeconomic and Monetary Interdependence of the Global Economy. With the Background of this approach the blog will deal with the implications for Investment decisions. The author believes that China and the Asia Pacific Region are and will be the powerhouse for the global economic growth for years to come. It will also cover IT because of its momentum driver for economic growth.
Saturday, 12 April 2014
Friday, 11 April 2014
U.S: Consumer sentiment rose to 82.6
Consumer sentiment rose to a preliminary April reading of 82.6 -- the highest reading since July -- from a final March level of 80, according to a Friday report on a gauge from the University of Michigan and Thomson Reuters. Economists polled by MarketWatch had expected a preliminary April level of 80.8. Economists watch sentiment levels to get a feeling for the direction of consumer spending.
Source: Marketwatch
Source: Marketwatch
Thursday, 10 April 2014
More policy aid expected for China's small companies
The Chinese government is planning more ways to develop small and micro sized businesses. That’s the word from experts and officials at the ongoing Boao Forum in Hainan Province. The companies can expect lower taxes and fees, and more financial assistance.
China’s budding businesses say lower fees and taxes are their major want. A survey of China’s micro and small companies done for the Boao Forum shows that 60 percent of the respondents see fees and taxes as their biggest concerns.
The survey came after China already cut fees for small companies last August. The cut favors budding businesses with monthly sales of less than 20 thousand yuan by charging them no value added taxes. Even with the cut, half of the survey respondents said they still want less red tape, easier entry, and more financial aid.
Small and micro companies topped the discussion in the first day of the Boao Forum. Analysts say these companies account for about 60 percent of China’s overall economic output and are struggling with rising costs and policy limits.
More support is around the corner. Draft proposals from several ministerial agencies have been submitted to the State Council for policy review. Lightening the load for small companies would add weight to the most dynamic part of the Chinese economy.
Source: CCTV
China’s budding businesses say lower fees and taxes are their major want. A survey of China’s micro and small companies done for the Boao Forum shows that 60 percent of the respondents see fees and taxes as their biggest concerns.
The survey came after China already cut fees for small companies last August. The cut favors budding businesses with monthly sales of less than 20 thousand yuan by charging them no value added taxes. Even with the cut, half of the survey respondents said they still want less red tape, easier entry, and more financial aid.
Small and micro companies topped the discussion in the first day of the Boao Forum. Analysts say these companies account for about 60 percent of China’s overall economic output and are struggling with rising costs and policy limits.
More support is around the corner. Draft proposals from several ministerial agencies have been submitted to the State Council for policy review. Lightening the load for small companies would add weight to the most dynamic part of the Chinese economy.
Source: CCTV
Stephen Roach Thoughts on Lower GDP Growth of China
On the Sidelines of the Boa Forum CCTV interviewed Stephen Roach former Chief Economist for the Asian region of Morgan Stanley.
Chinese lower GDP Growth of between 7-8% represents a structural change of their economy from an industrial economy to a services economy.
A more market based economy, will mean certain defaults in some companies, but not big enough to hamper the health of the Chinese Economy.
Chinese lower GDP Growth of between 7-8% represents a structural change of their economy from an industrial economy to a services economy.
A more market based economy, will mean certain defaults in some companies, but not big enough to hamper the health of the Chinese Economy.
Internet finance a hot topic at Boao Forum
Each year at the Boao forum experts from around the world debate hot issues in the business community. This year’s forum, the spotlight falls on internet finance. Academics and professionals are in deep discussion about its impact and significance.
Heated debate and opposing views. Financial gurus were not holding back on what they think of internet finance at Tuesday’s panel. Alwyn Didar Singh, secretary general of the Federation of Indian Chambers of Commerce and Industry, holds a positive view on this nascent sector, and believe it would be a strong force to drive up economic growth.
On the other hand, former chief economist of the World Bank Justin Yifu Lin expressed his opposing view.
Some other economists at the panel agreed with Mr. Lin.
In a separate panel, professor Chen Zhiwu from Yale University also expressed his negative views on the popular internet finance product Yu’ebao, an online currency fund launched by Alibaba. He said the success of Yu’ebao is because it exploited loopholes in China’s financial supervision.
Source: CCTV
Heated debate and opposing views. Financial gurus were not holding back on what they think of internet finance at Tuesday’s panel. Alwyn Didar Singh, secretary general of the Federation of Indian Chambers of Commerce and Industry, holds a positive view on this nascent sector, and believe it would be a strong force to drive up economic growth.
On the other hand, former chief economist of the World Bank Justin Yifu Lin expressed his opposing view.
Some other economists at the panel agreed with Mr. Lin.
In a separate panel, professor Chen Zhiwu from Yale University also expressed his negative views on the popular internet finance product Yu’ebao, an online currency fund launched by Alibaba. He said the success of Yu’ebao is because it exploited loopholes in China’s financial supervision.
Source: CCTV
World Bank chief urges developing nations to "get fundamentals right" to tackle impact of U.S. taper
"Getting the fundamentals right" is a more effective way for developing countries to face market impact caused by U.S. taper, World Bank President Jim Yong Kim said Thursday.
The taper's impact was not the same across the entire developing world, as 62 percent of developing countries' currencies actually have appreciated since the Federal Reserve announced taper intention last May, Kim said in his opening press briefing at the IMF-World Bank Spring Meetings.
Market is picking on countries with greater imbalances, greater weaknesses, said Kim.
"So the message is really get back to fundamentals, tackle the basics, and if the fundamentals are in good shape, then the market will recognize that."
He also said that "our hope is that the taper will be gradual, and right now, indications seem to be that everyone intends, including the U.S. Federal Reserve, to make this as gradual as possible."
If the taper happens in a gradual fashion, the growth in the developed economies including the United States, Europe and Japan will offset the decrease in capital inflow into developing countries, Kim said.
"So even though there are these little blips, we think that the outlook for emerging market economies is still very good, " he added.
Source: Xinhua
Sell off on Wall Street spread to Asia
"Japanese shares sank to six-month lows on Friday as an escalating selloff on Wall Street spread to Asia and sluggedmarkets that had been fairly resilient up to now.
What was increasingly looking like a major portfolio shift from momentum plays in U.S. technology and biotechnology stocks was having a knock-on effect across all regions and sectors, pressuring even defensive shares.
Momentum investing involves buying stocks that are already trending higher, often taking their price/earnings ratios into the stratosphere. When the momentum turns it can do so viciously as investors rush to the exits at the same time.
Japan, in particular, was vulnerable both to the dive in tech stocks and to the strength of the yen, which crimps exports and corporate profits. The Nikkei .225 gapped lower right from the off and never looked back, shedding 2.6 percent to 13,936.
A key chart bulwark in the 14,000 to 14,200 zone snapped like a twig, opening the door for a potential retreat to support at 13,750. Tech bellwether Softbank (9984.T) led the way with a drop of 4.8 percent to its lowest in over two months.
The slide followed a brutal day on Wall Street, where the Nasdaq suffered its worst single-day drop since late 2011. The tech-heavy index .IXIC sank 3.1 percent, while the Nasdaqbiotechnology index .NBI plunged 5.6 percent.
Markets across Asia were spooked by the scale of the losses, with Korea .KS11 down 0.9 percent in morning trade and Australia .AXJO 0.7 percent. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 0.7 percent.
Even the MSCI emerging markets index .MSCIEF eased back a little, a day after reaching its highest for the year so far. The emerging sector has been on a tear in the last couple of weeks as funds cut back exposure to developed markets.
The afterglow from the Greek five year bond, deal combined with the latest drop in U.S. yields helped the euro higher on the dollar. On Friday, the single currency was up at $1.3892 having rallied two full cents over the past four sessions.
The dollar also lost ground to the yen, falling to 101.45 from a high of 102.14 on Thursday. The dollar is now nearing major chart support around 101.20 that has held for much of the past three months and a breach would be bearish.
The dollar index also hit a three-week low of 79.330 .DXY, well below a seven-week high of 80.599 set only last week. It last stood at 79.401.
The fall in the dollar helped gold hit a 2-1/2-week high at $1,324.40 an ounce, though it had eased back to $1,317.14 on Friday.
Oil prices remained soft in the wake of disappointing trade data from China out on Thursday. Brent crude eased 17 cents to $107.29 a barrel, while U.S. crude was quoted down 18 cents at $103.22 a barrel.
Source: Reuters
Subscribe to:
Posts (Atom)
Popular Posts
-
UK markets were able to hang on to gains on Thursday morning on a busy day for economic data, as stocks continue to rebound after some heav...
-
The Wall Street Journal reports, "Ukrainian leaders on Monday ripped into Russia for what they said was an effort to tear their c...
-
"Federal Reserve officials have been trying to convince investors for weeks not to overreact when the central bank starts to tap its ...
-
Depuis deux semaines, la plus puissante démocratie du monde tient la planète en haleine, parce qu'un groupe d'élus ultraconserva...
-
The latest update to Windows 8 will be available on April 8 and brings much-needed tweaks for desktop users, restoring some of the fea...
-
Amid growing global demand for food, aquaculture companies aim to be bigger players by investing in new feeding processes and betting on e...
-
Uma disputa travada no conselho da Telecom Italia pode resultar na venda da TIM, segunda operadora de telefonia móvel do Brasil. A Telec...
-
What’s the Best ETF for Playing an Oil Price Rebound? Addressing the problems of the investment on oil ETF'S
-
The profound and pervasive crisis in Ukraine is a matter of grave concern for Russia. We understand perfectly well the position of a cou...













