Market

16Oct By TheGreenZoneNo Comments
Asia, Market, World

Due to unfavorable global signals, shares may begin the day down.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,748.71 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 1,654.96 crore in the Indian equity market on 15 October 2024, provisional data showed. According to NSDL data, FPIs have sold shares worth over Rs 70303.50 crore (so far) in the secondary market during October 2024. This follows their purchase of shares worth Rs 46,552.40 crore in September 2024. Most Asian stocks declined on Wednesday, primarily due to a weak outlook from ASML, a leading chipmaker. Cooling optimism about Chinese stimulus measures also contributed to the market's downturn. Regional markets followed Wall Street's lead, where a drop in chipmaking stocks pulled U.S. benchmarks from record highs. At the close in NYSE...
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The only source of labor force growth in America will be immigrants.
16Oct By TheGreenZoneNo Comments
Market, USA

The only source of labor force growth in America will be immigrants.

Immigrant workers will be the only source of U.S. labor force growth in the economy after 2052, according to new research by the National Foundation For American Policy. Long before then, this report states the number of Americans of prime working age will stagnate. The findings represent the latest evidence that U.S. economic growth and living standards will languish without immigrant workers entering the U.S. labor force. Economists like Pia Orrenius and Chloe Smith of the Federal Reserve Bank of Dallas noted in a public statement that a country achieves economic growth with “growth in the labor force and its productivity.” As such, businesses cannot expand without finding people to hire, and American consumers suffer when companies cannot provide goods and services ...
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A detailed examination of China’s economic predicament and the ways in which inexperience is escalating it
15Oct By TheGreenZoneNo Comments
China, Market

A detailed examination of China’s economic predicament and the ways in which inexperience is escalating it

This is the first in a three-part series delving into the unprecedented challenges China is facing on its road to economic recovery, from inexperience in dealing with such crises to the compounding implications of internal demographic shifts and external trade hurdles. The topsy-turvy roller-coaster ride that has seen China’s economy teetering on the rails for the past four years has left Zack Yao clinging to whatever business he can muster while struggling to determine when the wild ride will end. At 37 years old, the seller of electric power tools in the eastern province of Zhejiang has never experienced anything like the series of ups and downs that accompanied China’s pandemic years and subsequent attempts to return to economic normality. “I can still feel the sting...
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Can China’s lethargic economy be revived by the massive stimulus spending the government is planning?
15Oct By TheGreenZoneNo Comments
Asia, China, Market

Can China’s lethargic economy be revived by the massive stimulus spending the government is planning?

China’s relentless economic growth used to be the marvel of the world. Oh, what a memory. The past couple of years have seen China contend with an economic slowdown amid colliding crises, many of which make it internationally unique. Consumer prices have been approaching deflationary territory, there’s an oversupply of housing, and youth unemployment has soared. Mounting pressure has forced the Chinese government to step in. Over the past month, Beijing has put forward a set of significant economic stimulus measures aimed at reviving China’s faltering economy. According to a research note by Deutsche Bank, this stimulus could potentially become “the largest in history” in nominal terms. But there’s still a lot we don’t know. So what kinds of measures that are ...
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Here are four factors that make the cash-strapped economy of Pakistan the subject of international attention.
12Oct By TheGreenZoneNo Comments
Asia, Market

Here are four factors that make the cash-strapped economy of Pakistan the subject of international attention.

Pakistan's economic crisis deepens as the International Monetary Fund (IMF), a global financial agency, eyes implementing policy reforms in the South-Asian nation. This is the latest development in Pakistan's economic crisis row as the nation tries to borrow its way out of its debt situation. IMF's row with Pakistan to improve its economic situation has been spread over several events. The nation aims to reduce expenditures, increase the tax-to-GDP ratio, tax non-traditional sectors like agriculture and real estate, limit subsidies, and transfer some fiscal responsibilities to provinces. The news agency PTI reported on Saturday, October 12, quoting a local news portal, The News International. It said that the International Monetary Fund (IMF) has focuse...
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Economists urge stronger action from China to combat deflation.
12Oct By TheGreenZoneNo Comments
China, Market

Economists urge stronger action from China to combat deflation.

China moved to further ramp up support for the economy, promising more aid for the slumping property sector and indebted local governments. But officials still haven’t convinced economists that they’re doing enough to defeat deflation. At a highly anticipated briefing on Saturday, Finance Minister Lan Fo’an refrained from putting a price tag on China’s fiscal stimulus as investors expected, signaling that details would come when China’s legislature meets in the coming weeks. The supportive measures he did announce, however, gave little indication Chinese authorities felt any urgency to ramp up consumption, which many economists see as essential to reflating the economy and putting it on a more positive growth trajectory. “The policy to support consumption sounds quite...
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Some indications that the Indian economy may be slowing down
8Oct By TheGreenZoneNo Comments
Asia, Market

Some indications that the Indian economy may be slowing down

The Indian economy is showing signs of slowing down, with high-frequency data released last week suggesting GDP growth could again come below 7 per cent in the Jul-Sep quarter of 2024-25. In Apr-Jun, India’s GDP growth had fallen to a five-quarter low of 6.7 per cent. A series of weak numbers emerged on the last day of September, with the central government's finances showing its capital expenditure was down 30 per cent on-year in August and 19.5 per cent in Apr-Aug. Core sector data, also released on Sep 30, showed output contracted by 1.8 per cent on year in August, the worst performance in 42 months. The numbers have continued to trend downwards: the manufacturing and services Purchasing Managers’ Index for September, while still in expansionary territory, fell to eight and 10-mo...
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Following a vote, an EU executive is ready to impose duties on Chinese electric vehicles.
5Oct By TheGreenZoneNo Comments
China, Market, World

Following a vote, an EU executive is ready to impose duties on Chinese electric vehicles.

The European Commission said on Friday it had received enough support in a vote of EU members to impose tariffs of up to 45% on imports of Chinese-made electric vehicles in the bloc's highest-profile trade case, risking retaliation from Beijing. France-based broadcaster Euronews cited diplomatic sources as saying that Poland voted in favor of the move, but Germany, the region's biggest economy and major car producer, opposed it.The European Commission, which oversees the bloc's trade policy, has proposed final duties for the next five years to counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation.In a vote on Friday, 10 EU members backed tariffs and five voted against, with 12 abstentions, EU sources said.It would have taken opposition from a qua...
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The European Union decides to levy taxes on electric cars made in China.
5Oct By TheGreenZoneNo Comments
Asia, China, Market, World

The European Union decides to levy taxes on electric cars made in China.

The European Union on Friday voted to adopt definitive tariffs on China-made battery electric vehicles (BEVs). “Today, the European Commission’s proposal to impose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China has obtained the necessary support from EU Member States for the adoption of tariffs,” the EU said in a statement. The EU first announced that it would slap higher tariffs on Chinese electric vehicle imports in June, on the grounds that they benefited “heavily from unfair subsidies” and posed a “threat of economic injury” to electric vehicle producers in Europe. Duties were also disclosed for individual companies, depending on the extent of their cooperation with the probe. Provisional duties were put in place from early Jul...
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China’s Real Estate Market: An Analysis of the Boom and Bust
1Oct By TheGreenZoneNo Comments
Asia, China, Market

China’s Real Estate Market: An Analysis of the Boom and Bust

China’s property sector is sinking. Once the economic backbone by which hundreds of million Chinese went from poverty to the middle class, the industry is now seeing slumps in the value of real estate that threaten not only household wealth and revenue for local governments, but also the overall growth of the Chinese economy, a key indicator of the Chinese Communist Party’s legitimacy and right to rule.  Behemoth property developers such as Evergrande and Country Garden have gone under. In an attempt to mitigate the fallout, Chinese authorities last week rolled out stimulus measures designed to stabilize the market and to prevent the downward spiral that has seen the value of new homes sold drop by over 23 percent through August 2024.   In the Unit...
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