Markets Archives - Page 630 of 782

Bearish BRICs: Have the BRIC Nations lived up to the Hype?

Over the past decade, very few countries can claim to have matched the economic success of those of the BRICs. Ever since the term ‘BRIC’ was born in 2001, the bloc has grown rapidly – now accounting for almost a quarter of the world’s total economic output. Nevertheless, as the eurozone crisis has shown, the bloc is not immune to a weakening global economy; and the outlook for the BRICs is now uncertain. Have the BRIC nations lost their momentum?

EU’s Rating Outlook Cut To ‘Negative’

Moody’s Investors Service lowered the European Union’s credit rating outlook from ‘stable’ to ‘negative’ on Monday, citing risks in the region’s last remaining Aaa-rated economies – Germany, France, the U.K. and Netherlands – as the reasons behind the cut.

The move follows a similar action in July, when Moody’s had revised the outlooks of Germany and the Netherlands to ‘negative’; while France and the U.K. had already seen their outlooks lowered earlier this year.

Are Bad Habits Stifling Africa’s Economic Potential?

Ever since the start of their post-colonial era, problems such as corruption, poor governance, ethnic divisions and poor infrastructure have continued to haunt several African economies in their quest for sustained economic growth. Can these issues be overcome and will Africa live up to its promise?

After Months of Inaction, the ECB Must Act Now to Save Euro

The European Central Bank is under pressure to ride to the eurozone’s rescue. According to the Secretary-General of the Organisation for Economic Co-operation and Development, the ECB can and should do more to stem the eurozone crisis because current financial facilities are simply not enough.

Speaking at an international business and political conference in Slovenia, Angel Gurria of the OECD yesterday urged the ECB to provide a “credible signal” to markets and resume bond-buying to help stem financing costs for debt-ridden countries like Spain and Italy.

Key Economic News to Watch this Week: September 3

A series of important meetings take place this week. US Secretary of State Hillary Clinton meets with Asian leaders in Indonesia and China respectively, before attending the APEC ministerial talks in Russia at the end of the week. However, an even bigger market focus this week could prove to be ECB Mario Draghi’s plans eurozone recovery. He is expected to chair a policy meeting this Thursday.

Monday, September 3

China Promises to Keep Investing in Eurozone

China has pledged more help for the deteriorating eurozone crisis, with Premier Wen Jiabao promising to purchase more EU government bonds.

Speaking at a joint press conference with German Chancellor Angela Merkel at the end of a two-day official visit to Beijing, the Premier said China remains confident in the euro and will continue to buy European bonds to help debt-ridden European countries ride out the crisis.

However, he said it is important that European leaders “strike a balance” between a fiscal tightening and economic stimulus.

Low-Cost Innovation: Waves Of Change From India?

READER SUBMISSION – Nearly two years after the Indian government declared that this was the Indian “Decade of Innovation,” the country is now emerging as one of the world’s hotbeds for low-cost and frugal ideas. Can India continue on its vision of innovation; and what can the rest of the world learn from this era?

What does it mean for Indians today to live in our so-called “Decade of Innovation”?

India To Remove Restrictions On Investments In Pakistan

After decades of cross-border animosity, India’s Finance Ministry finally announced on Thursday that it would soon allow its companies and entrepreneurs to invest in neighbouring Pakistan, reported the Times of India, with the commerce secretaries of both nations also set for talks to improve trade by September.

China’s Unruly Debt Woes: Michael Pettis

What is the biggest fear hanging over China? Slowing external demand? Could it be the imbalances in its domestic economy? Or the country’s real estate bubble? While these threats are real and challenging nonetheless, debt is China’s most worrying, not to mention understated, problem. As we saw very clearly in the last two years in Europe, debt crises are often downplayed and sneak up on us when we least expect it.

Pork Prices Hog Chinese Inflation Fears

Rising pork prices, coupled with a declining domestic supply, could trigger high inflationary rates across China over the next year, claimed a report by Reuters on Tuesday, with the nation’s top economic planning agency now ordering producers to stockpile its frozen pork supply ahead of a possible supply squeeze.