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?
U.S. stocks continued to claw their way back last week, especially growth stocks . For the week, the Nasdaq posted a gain of 2.2% and the S&P 500 rose 0.4%. The Dow? Not so much, sliding just 0.1%. A blowout jobs report for July offered up another dose of good news for the economy and not-so-good news for the stock market, but equity investors hung in there. U.S. employers added 528,000 jobs to their payrolls last month , which was more than twice what was expected, and that added credence to the Federal Reserve 's stance that the U.S. economy is not in a recession given the continued strength of the labor market. So, the thinking goes, the Fed will continue to be aggressive in raising interest rates to cool down inflation, because it's not impacting companies' willingness to hire. That led to a steep selloff in U.S. Treasurys, with the yield on the 10-year Treasury note ending the week at 2.83%. Oil prices continue to tumble, hitting their lowest level since early … [Read more...] about Live from InvestFest with Downtown Josh Brown, BitBoy Crypto, and Lamar Wilson
- A + A NEW YORK/BENGALURU (Aug 9): The Nasdaq fell on Tuesday after a dismal forecast from Micron Technology pulled chip and technology stocks lower, as markets await US inflation data that could lead the Federal Reserve to further tighten its aggressive plans to curb inflation. High inflation numbers on Wednesday, following last week's blowout jobs report, would likely stop the Fed from easing interest rates hikes and halt a nascent recovery in stocks. Traders see a 68.5% chance of the Fed raising rates by 75 basis points in September, in what would be its third big hike in a row. Adding to concerns of a tight labour market and runaway inflation, data on Tuesday showed an acceleration of unit labour costs in the second quarter, which suggested strong wage pressures will help keep inflation elevated. Unit labour costs — the price of labour per single unit of output — rose at a 10.8% rate, following a 12.7% rate of growth in the first quarter, the Labor … [Read more...] about Nasdaq slides 1% as chipmaker Micron’s warning renews tech rout
SO LONG, STEADY EDDIE | True to his reputation for long-term planning and attention to detail, Fidel V. Ramos, whose presidency from 1992 to 1998 is now remembered as a period of stability and growth, arranged his own funeral years back and picked the site of his grave, shown in the inset photo. The country paid him its last respects at Libingan ng mga Bayani in Taguig City on Tuesday, Aug. 9, 2022. (Photo by NIÑO JESUS ORBETA / Philippine Daily Inquirer and Philippine News Agency) MANILA, Philippines — Former President Fidel V. Ramos was accorded a state burial with full military honors at Libingan ng mga Bayani in Taguig City on Tuesday, a somber ending to five days of tributes for the late war veteran, commander in chief, and statesman. In his home province of Pangasinan, the local government offered to help preserve Ramos’ ancestral home in Lingayen town and turn it into a museum showcasing memorabilia and other personal items that belonged to the country’s 12th president. … [Read more...] about Farewell to FVR: Ming thanks nation for the love
Share to Twitter Share to Linkedin Topline New housing starts unexpectedly plunged more than economists projected in June as home builders grappled with the effects of rising interest rates curbing demand for new homes, according to data released Tuesday, adding to signs of an abrupt turnaround in the booming housing market. Key Facts The number of housing starts, or new houses on which construction has started, fell 2% to about 1.56 million last month despite average economic projections calling for an increase of 1.4%, the Census Bureau reported Tuesday. Building permits were slightly above expectations, coming in at less than 1.7 million, but fell from May and are down from about 1.8 million in April. In emailed comments after the release, LPL Financial chief economist Jeffrey Roach said housing starts declined because demand is “quickly drying up” from higher borrowing costs as the Federal Reserve raises interest rates, though he … [Read more...] about New Home Construction Keeps Sinking As Housing Market Demand ‘Quickly’ Dries Up