Economy Financial News

BofA sees the US Federal Reserve cutting rates four times in 22024, as it now predicts faster growth and lower inflation for the US economy.

By Ahmad Ghaddar

Meanwhile, China's consumer prices fell the fastest in three years in November while factory-gate deflation deepened, indicating rising deflationary pressures as weak domestic demand casts doubt over the economic recovery. Xu Tianchen, senior economist at the Economist Intelligence Unit, said the data would be alarming for policymakers and cited three main factors behind it: falling global energy prices, the fading of the winter travel boom and a chronic supply glut. Early this month, rating agency Moody's downgraded the outlook for China's economy from 'stable' to 'negative' owing to persistently lower medium-term economic growth and the ongoing downsizing of the property sector in the country. China is struggling with grave portends for its economy which has been for long the toast of the world. China’s economy will slow next year, with annual growth falling to 4.5% from 5.2% this year despite a recent recovery spurred by investments in factories and construction and in demand for services, the World Bank said in a report last week. While it was briefly seen to be emerging strongly out of the Zero-Covid policies, the hope was short lived. The ongoing real estate crisis has dampened the consumer spirit, huge debt is weighing down the economy, foreign investors are losing confidence and unemployment and deflation are dogging the world's second-largest economy. Add to that President Xi Jinping's crackdown on private business. While China is not heading towards a collapse, its miracle growth is now a thing of the past.

Investing.com — Oil prices soared higher Monday on concerns of disruptions to global supply, particularly to the important Asian market, following mounting attacks by the Houthis on ships in the Red Sea.

Pakistan Army Chief Gen Syed Asim Munir during his USA trip in a desperate move has launched a charm offensive on the Pakistani diaspora, urging them to invest in Pakistan. Wealthy Pakistani individuals in the USA — investors, physicians, IT professionals, engineers, university professors, financial experts, and economists attended an event during the ongoing visit of Munir.

BEIJING (Reuters) -China's economy is expected to see more favourable conditions and more opportunities than challenges in 2024, state media said citing officials of the Chinese Communist Party's finance and economy office.

The S&P 500 (SPX) closed 2.5% higher last week, which marked the 7th straight week of gains. The index is now very close to posting fresh record highs as it returns to trade above 4700 for the first time since January 2022. Overall, the S&P 500 is up about 15% from the October lows.

Crude oil closed last week in the positive territory for the first time after 7 consecutive weekly falls. Prices finally found some support as demand concernes eased.

NEW DELHI : Apart from a stable regulatory and policy regime, transparency in decision-making and information flow are key to attracting foreign investors to emerging economies such as India, said Matthew Stephenson, head of investment and services at the World Economic Forum. Foreign investors are keen on emerging markets, especially India, at a time of slowing global growth, but want the right information before making a decision, Stephenson said, speaking with Mint on the sidelines of the World Investment Conference 2023. “You can’t calculate your costs if you don’t have information.

markets and a depreciation of the domestic currency is likely to enhance the competitiveness of the country’s exports while making imports of goods costlier. In a written reply in the Lok Sabha, minister of state for finance Pankaj Chaudhary also said spill-overs from geo-political tensions, aggressive monetary policy tightening across the world and recent surge in crude oil prices are some of the factors exerting pressure on the rupee against the dollar. At the same time, the exchange rate is only one of the several factors that influence demand for exports and imports in an economy, Chaudhary said. These factors include the types of the tradeables (essential or luxury items), availability of substitutes, freight costs and income growth of countries that buy goods and services from India. “Thus, the impact of recent depreciation of the Indian Rupee against the US Dollar, on levels of exports and imports cannot be isolated,” he added. The domestic currency has depreciated by more than 41% against the greenback since May 30, 2014 when one dollar equalled Rs 59.03. He said the Reserve Bank of India (RBI) regulates the foreign exchange market with a view to ensuring its “orderly functioning and development while eschewing undue volatility”. The central bank has announced a raft of steps in recent years to diversify and expand the sources of forex funding to mitigate exchange rate volatility and dampen global spill-overs, Chaudhary said.

What is the “wealth effect,” and why is it important? It is a great question and reminded me of “A Funny Thing Happened on the Way to the Colosseum.“ The hysterical play by Craig Sodaro features a naive Swiss farmer heading for Rome.

By Ahmed Eljechtimi

Investing.com — U.S. stock futures edged higher Monday at the start of the last full trading week before the Christmas holidays, continuing the recent positive tone driven by expectations for Federal Reserve rate cuts next year.

By Huw Jones

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The Bank of Canada will likely start cutting interest rates in the second quarter of 2024, predicts the chief economist at Deloitte Canada.

In a move that could reshape its economic landscape, Bhutan has announced the establishment of a new Special Administrative Region (SAR) in Gelephu, strategically located along its border with India. The announcement, made by King Jigme Khesar Namgyel Wangchuk during his National Day speech on 17 December, signals Bhutan's intent to revitalize its economy by leveraging its geographical position to bridge South and Southeast Asian markets. Mint explores what this means for Bhutan and the wider South Asian region, with a special focus on India's role in this ambitious endeavour.

₹8.04 lakh crore ($96.86 billion), or 45% of the estimate for the whole year. The government has collected ₹10,050 crore from selling stakes in government-run firms as of December 13, against its full-year target of ₹51,000 crore, Karad said in Parliament. “It is difficult to anticipate the quantum of actual proceeds from divestment during the current financial year 2023-24" because stake sales depend on factors including market conditions and investor appetite, said Karad.