Dear Reader , The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. In a case of how cheer for the economy may not be so for markets, investors in US stocks fretted over excellent jobs data. US businesses added 5,28,000 jobs in July, beating most estimates by an embarrassing margin. US 2-year treasuries rose after the report, as the market priced in a more certain likelihood of another 75-basis point rate hike by the US Fed. But the S&P 500 slipped, as investors pondered over what too strong an economy could mean for interest rates. Those fears did not carry over to India, however, with the stock market rising by a strong 0.8 percent at 1.15pm. The RBI’s 50 basis point hike in the repo rate last week and its determination to stay in ‘withdrawal of accommodation’ mode is … [Read more...] about Moneycontrol Pro Panorama | Are US and Indian markets decoupling?
Inflation problems in south africa
Representative Image In the August Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said that the Indian Rupee (INR) has fared “much better than several reserve currencies as well as many of its EME and Asian peers”. The Governor also added that the INR has depreciated “more on account of the appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy”. Of late, there has been a lot of discussion around the INR. Towards the end of July, the rupee touched 80 against a US dollar , leading to discussions that it is a sign of a weakening Indian economy. But, is this the case? First, exchange rate increasing or decreasing against a foreign currency is not a sign of weakness or strength. In fact depreciation of the currency is often cited as a positive development for the domestic economy. If a currency depreciates against a foreign currency, the exports become cheaper with respect to the other country, and imports … [Read more...] about USD vs INR | India’s macroeconomic fundamentals are strong
Representative image The Reserve Bank of India announced measures to ease forex inflows. This explainer helps us understand the measures and objectives behind them. What are forex inflows and why are they needed? One of the major factors of a country’s growth is higher savings. Savings are channelised into investments, which help drive the growth of an economy. If the domestic savings rate is low or the investment rate is higher than the savings rate, foreign exchange savings can be used to bridge the gap. Foreign exchange savings are nothing but net inflows of foreign capital. The Indian economy was liberalised in 1991 and efforts were made to attract forex inflows. There are various categories of forex such as Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), NRI deposits, and External Commercial Borrowings (ECB). The government and the Reserve Bank of India welcome equity flows such as FDI and FPI, but are cautious about debt inflows because heavy … [Read more...] about MC Explains | Will steps to liberalise forex inflows help the rupee?
Julian Zelizer, a CNN political analyst, is a professor of history and public affairs at Princeton University. He is the author and editor of 24 books, including, " The Presidency of Donald J. Trump: A First Historical Assessment ." Follow him on Twitter @julianzelizer . The views expressed in this commentary are his own. View more opinion on CNN. (CNN) President Joe Biden delivered a bold speech on Thursday night , calling for a ban on assault weapons and other gun policies, including strengthening background checks and enacting new "red flag" laws. "Enough, enough," he told the nation, urging Congress to take action after a slew of mass shootings rocked the country. "We can't fail the American people again." The speech comes at a difficult moment for Biden. The administration is facing multiple escalating crises, which are slowly undermining his leadership and political strength. There's the Russian war in Ukraine, inflation and stock market turbulence, mass … [Read more...] about Opinion: How Biden can avoid Carter’s one-term presidential fate
A crowd at an election rally in Uttar Pradesh. (Image Source: AP/File photo) The prime minister has set the cat among the pigeons, with his fusillade against election freebies while inaugurating the Bundelkhand expressway. He said the culture of garnering votes by promising freebies harms the country’s economic development and warned the youth, ‘Your present will be lost and your future pushed into darkness.’ Those who believe in distributing freebies, he said, would never build infrastructure, sorely needed for securing the country’s future. That little speech succinctly lays out the rationale against populism---it promises instant gratification, at the cost of future penury. Predictably, the speech drew the ire of AAP supremo Arvind Kejriwal, who defended his trademark policy of giving away free power. His promise of giving 300 units of free power to each household if his party wins the Gujarat elections is estimated to cost the state Rs 8700 crore a year. It is policies such as … [Read more...] about The hidden cost of free lunches
Share to Twitter Share to Linkedin The Panama Canal is a conduit for 6% of the global maritime traffic. But climate change is disrupting that trade. While high temperatures and little rain are the primary causes, four hurricanes over seven years have been equally devastating. The Panama Canal is in the midst of Panama’s rainforests, which cover 68% of its land or nearly 12.7 million acres. Both depend on precipitation for survival. If the rainforests do not get ample rainfall, it trickles down to the canal. The bad news is that the canal’s authorities say that 2019 was the fifth most arid in 70 years, with rainfall 20% less than the average, all compounded by depleted reservoirs. Indeed, water levels fell in 2015 and 2016 , and shippers had to reduce the amount of cargo on their vessels — money down the drain. “The Panama Canal is the only interoceanic commerce route whose operation depends on the availability of freshwater, making it the most … [Read more...] about Climate Change Threatens Panama Canal And Global Maritime Trade
- A + A OSLO/STOCKHOLM (Aug 9): Soaring power prices are forcing a bitcoin miner and data centre operator in southern Norway to head north. Kryptovault AS is moving operations north of the Arctic Circle, where electricity is much cheaper, chief executive officer Kjetil Hove Pettersen said. Staying put would mean doubling a power bill that last year hit 202 million kroner (RM92.7 million) and typically makes up more than 80% of the company's operating expenses, he said. The energy crisis gripping Europe has been exacerbated in southern Norway as a dry spring depleted many giant reservoirs that are vital for local power generation. But it is a different story in the country's north, where there is ample water and it is hard to send flows to other regions. Prices in the most northern price zone where Krytovault will set up shop are a small fraction of those in the south. "The relocation project will of course add other expenses and complications, however, with … [Read more...] about Norwegian bitcoin miner heads north to escape record power bills