However, being an advertising company, Facebook is dependent on overall economic growth. And with recessionary fears looming large, big corporates are expected to cut their advertising spends. With that said, Facebook caters to a varied audience, consisting of both small and big advertisers, some of whom have not been impacted by coronavirus just yet. … [Read more...] about As coronavirus halts US stocks’ rally, can FAANG offer safe place to investors?
Rupee value against dollar
The GDP data, announced on Friday, indicate that the Indian economy continues to be very weak. The second advance estimates for the current fiscal year keep real GDP growth at 5 percent, the same as in the first advance estimates. But there’s a twist -- the GDP growth rate for 2018-19 had been revised down from 6.8 percent to 6.1 percent. So the second advance estimate’s 5 percent growth rate is on top of a 6.1 percent growth, while the first advance estimates 5 percent growth rate was on top of a 6.8 percent growth. In other words, growth is now estimated to be weaker than earlier. … [Read more...] about Moneycontrol Pro Weekender: Time to pay the bill?
The other adage about central banks used to be that they would withdraw the punch bowl just as the party got going. These days, nobody drinks punch and central banks in the advanced economies have injected the equivalent of crack cocaine into the markets via ultra-low and negative interest rates and quantitative easing programmes. Whenever this drug-fuelled party seems to be ending, the Fed has been quick to assure the market the cocaine supply will continue. The worry for the markets this time was that Powell was made of sterner stuff than his predecessors, a fear that sent the markets plunging. At the roundtable on January 4, Powell read from a prepared script aimed at assuaging the market’s fears. The markets heaved a huge sigh of relief. … [Read more...] about Opinion | Central banks’ ride to rescue the markets once again
For example, real growth in gross value added for 2017-18 was 6.1 percent in the first advance estimate -- it’s now estimated to be 6.5 percent. Agriculture was initially supposed to grow by 2.4 percent -- it’s now estimated to have grown by 3.4 percent. The first advance estimates put manufacturing growth in 2017-18 at 4.6 percent -- it’s now estimated to have been 5.7 percent. Estimates of growth in the construction sector rose to 5.7 percent from 3.6 percent. … [Read more...] about Opinion | Take the first advance GDP growth estimates with a pinch of salt
Q: Will the Reserve Bank of India cut rates on the basis of this retail inflation number?A: That is unlikely. To be sure, retail inflation is now well below the RBI’s four percent target. But the central bank will look through the base effects. It will also consider that core inflation remains high and it has said that the output gap has all but disappeared. The media is full of reports of the government planning plenty of freebies before the elections, which will have an adverse effect on the fiscal deficit, especially as Goods & Service Tax (GST) collections are way below target. Crude oil prices are volatile and need to be watched carefully. The rupee too has been weakening again. Under these circumstances, the Reserve Bank of India will probably shift its stance back to neutral and wait and watch. … [Read more...] about Quick Take | 6 questions answered by inflation numbers