Moodys Financial News

Both jobseekers and policymakers can take solace in the current state of the U.S. job market, according to labor economists.

By Xie Yu

global slowdown in growth, Marie Diron, managing director for global sovereign and sub-sovereign risk at Moody's Investors Services told CNBC. She also hinted on the possible impact of global economic slowdown on Asia through trade conditions as well as access to financing in the region. She also mentioned that the slowdown can be led by three factors, ie higher interest rates by central banks, China's slow growth, and financial system stresses.

By Xie Yu, Clare Jim and Li Gu

India, and they would need to focus on education and infrastructure to take advantage of the demographic dividend, according to the latest report by Moody's Investor Service. «The ability of sovereigns to address these challenges will determine the extent to which their large populations can take advantage of opportunities to enhance long-term economic growth,» the ratings and research firm said in a report released Monday. While it appreciated the efforts made by India and the Philippines on infrastructure and governance, the firm noted that considerable work needed to be done on parameters like education and labour force participation. «There remains a considerable gap in the quality of education between Pakistan, Bangladesh and India compared with China and other peers in Southeast Asia, which contributes to labour-force participation imbalances,» the report said. The report pointed out that while the six large economies would contribute to a third of the global population increase over the next two decades and contribute significantly to the global labour pool, it said that «population growth unaccompanied by adequate job creation is likely to exacerbate sovereigns' exposure to social risks. According to the United Nations, India crossed China this year to become the most populous country in the world, and its population shall take another 40 years to reach its peak.

It's getting harder to find new, cheap cars, according to auto experts.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Moody's Investors Service said. Earnings before interest, taxes, depreciation and amortisation (EBITDA) of Indian companies rated by Moody's will grow 5%-10% over the next two years as prices of key raw materials like crude oil and coking coal retreat from 2022-highs, it said in a note dated Thursday. State-owned oil marketing companies — Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd — will be the major beneficiaries of slide in crude prices. However, it will also hurt the earnings of upstream oil companies like Oil and Natural Gas Corp and Oil India as their revenues will take a hit, Moody's said. Moody's said JSW Steel will benefit the most from declining coking coal prices as its operating costs will reduce, while Tata Steel is likely to see limited gains due to lower profitability in its Europe business. Oil-to-telecom conglomerate Reliance Industries and top cement maker Ultratech Cement are also tipped to see strong earnings growth over the next two years, it added. Moody's said capital spending will remain high at nearly 4 trillion rupees, with Reliance, ONGC, IOC, telecom firms and steelmakers incurring the bulk of the expenditure, but it is unlikely to drag earnings. «Expected earnings growth combined with prudent balance sheet management over the last 12-18 months will buffer the impact of high capital spending.» India's young population, steady demand and rising spending power would keep domestic consumption «robust» at least till the end of the year, while sustained government infra spending will support business activity in key industrial sectors, Moody's added.

Potomac Wealth Advisors President Mark Avallone discusses whether the stock market rally will last after CPI data showed inflation slowed again in June on 'Varney & Co.' 

TrendMacro chief investment officer Don Luskin says a growing economy is 'like a growing boy' on 'Making Money.'

(This Aug. 22 story has been corrected to say that the estimate was from Moody's (NYSE:MCO) catastrophe risk modeling business, not the ratings agency, which is a separate unit of Moody's Corp, in paragraph 1)

By Safiyah Riddle

real estate sector as expected to put lenders' creditworthiness to the test, reported Reuters. Banks have been forced to pay out higher interest rates in order to prevent depositors from running away to other high-yielding options due to the US Federal Reserve's unrelenting campaign of rate hikes.

(Reuters) -S&P Global cut its credit ratings and outlook on multiple U.S. regional banks on Monday, saying higher funding costs and troubles in the commercial real estate (CRE) sector would likely test their credit strength.

Ratings agency Moody's has affirmed BAA3 rating on India and maintained a 'stable' outlook on the Indian economy. THIS COPY IS BEING UPDATED

By Clare Jim

On the occasion of the first anniversary of the Inflation Reduction Act (IRA)-a legislative attempt to combat the climate crisis, President Joe Biden hailed the bill, saying the legislation already created 170,000 clean energy jobs and will create some 1.5 million jobs over the next decade. The president added that the legislation has shifted the production of critical components away from China and into the United States. "We are building here and sending over there," Biden said.

By Jarrett Renshaw

International Assets Advisory CEO Ed Cofrancesco discusses the FOMC's stress test for big banks and his stock picks to short.

In this article

John Lonski discusses how President Biden said that the ‘Inflation Reduction Act’ has less to do with inflation than originally claimed on ‘Maria Bartiromo’s Wall Street.’