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Economy
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President-elect Barack Obama focused on the teetering US economy as transition officials said he would name a respected Federal Reserve official to the post of treasury secretary on Monday.
Obama also outlined a plan to create 2.5 million jobs rebuilding roads, modernising schools and creating alternative energy sources.
If confirmed by the Senate, Timothy Geithner, 47, president of the New York Federal Reserve, would be the top Cabinet official in charge of leading the administration’s response to the global economic crisis. Word of his likely selection on Friday helped send the Dow Jones Industrials soaring 500 points after several days of steep losses.
Obama also will name Lawrence Summers, a treasury secretary under former President Bill Clinton and the former president of Harvard University, to coordinate the federal response to the economic meltdown across several agencies, transition officials said.
Geithner and Summers were scheduled to appear with Obama at a press conference in Chicago on Monday morning.
As director of the National Economic Council, Summers would help shepherd Obama’s new recovery plan, which aims to create millions of new jobs by January 2011. Obama wants Congress to approve it quickly so he can sign it shortly after his inauguration.
‘‘These aren’t just steps to pull ourselves out of this immediate crisis; these are the long-term investments in our economic future that have been ignored for far too long,’’ Obama said in the weekly Democratic radio address on Saturday.
He called the plan ‘‘big enough to meet the challenges we face’’ and said that it will jump-start job creation and lay the foundation for a strong economy
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rvk41...
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Dhawal Dalal, Fund Manger, DSP BlackRock, said globally bond yields are coming down and the one-year Overnight Index Swap or OIS is marginally aggressive call expecting 1% cut in reverse repo. He said, “We believe at least 50 bps rate cut could come either in reverse repo, repo or both.”...
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It might seem perverse to claim that the current economic crisis in the country, and also in the rest of the world, has a good side to it. Try telling it to a software engineer who has just lost his job because of the meltdown in the US economy, and he might think you are insensitive. Try telling that to a vegetable supplier or a flower supplier to a big hotel that has cut its orders because of a sharp downturn in the hospitality and tourism business, and he might wonder if you are in your senses.
The economic slowdown has hit every segment of the economy and every section of society. Lakhs of people have lost their jobs. Many more have seen a sharp fall in their incomes. The worst sufferers are those who thought that the stock market was the gateway to quick prosperity. With the BSE Sensex having fallen from the 20,000 level to 10,000 in a matter of months, a lot of small and medium investors have seen their share-related wealth shrink. A friend of mine who is well-connected to the world of business said, “So far we have heard of farmer suicides. Now we might read about suicides by businessmen and stock-market professionals.” I hope it doesn’t happen, but the mere fact that it is being speculated indicates the grim nature of the economic situation.
With insecurity and pessimism spreading fast, their impact on people’s behaviour is inevitable. Domestic conflict in cities has increased, and so has the number of people consulting psychiatrists. Those who earlier had the latest film songs as ring-tones on their cellphones now have bhajans. The number of devotees at places of worship has increased. This is also true of the number of church-goers in America and Europe, where churches used to be empty.
I met a young media professional in Delhi a few days ago. For someone who has just started his working career, he earns very well. But he is worried about his future, for he knows that his newspaper has just sacked many people working on its online edition. “Just a few months ago,” he said, “the talk among my young friends, all of whom earn a good salary like me, was all about films, fashion shows, trendy restaurants, etc. They were least interested in politics, national or international. Now they discuss the global economic crisis, Obama, Indian elections...”
BY Sudheendra Kulkarni
...
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Mr. Singh, a former economics professor, wants India to play a bigger role in shoring-up the current global financial system to prevent future crises. At the Group of 20 Summit last week, Prime Minister Singh said he argued for a global safety net that would protect the poor, but he also joined with other countries in discouraging protectionist trade barriers to shield markets from the crisis. That, he said, would be the "worst response."
By PETER WONACOTT...
In reply to:
India to Focus on Growth, Poverty ...
Posted by :
sambala
NEW DELHI--With the global economy darkening and a general election months away, two of India`s top leaders pledged government action to sustain growth and protect the poor.
Prime Minister Manmohan Singh, at a conference Friday, said India would be able to maintain 8% annual economic growth a rate that represents a slowdown from 9% last year but is still above the near-term forecasts of many economists. While the Indian prime minister didn`t offer specific policy prescriptions, he suggested the response to the gathering economic troubles would be aggressive.
No instrument of public policy will be spared," he said.
India is investing heavily in infrastructure, and has raised salaries for government employees and offered emergency loan relief for farmers. More public spending carries risks, namely a government deficit that has expanded well-beyond targets. But India`s leaders must also shepherd a poverty-ridden country through a global economic crisis and avoid political upheaval.
In a speech that followed the prime minister, Sonia Gandhi, the leader of the ruling Congress party, said concerns for the poor would guide the government`s future economic decisions. Liberalization would be accompanied by "sensible but not heavy-handed regulation," she said.
In a jab to the crowd of business leaders, Ms. Gandhi praised the nationalization of the country`s banks under her mother-in-law and former Prime Minister Indira Gandhi. Critics cite the move, four decades ago, as an example of the government`s heavy-handed intervention that shielded the country from private competition and dragged down the country`s growth. Defenders say it reassured depositors and stabilized the financial sector. "Every passing day bears out the wisdom of that decision," Ms. Gandhi said.
Until recently, India`s government officials were forecasting double-digit economic growth and the gradual further opening of sheltered sectors, such as retail, to foreign investors. But the remarks of the two Indian leaders reflect the new economic as well as political realities. Economic trouble in India poses risks to the Congress party, which heads a coalition government, and openings for its opponents.
Six state elections will be held by the end of the year and a national parliamentary vote -- which installs a new government and prime minister -- is expected early next year. The Bharatiya Janata Party, or BJP, is hoping to unseat its Congress by cobbling together a majority in the national Parliament.
"One thing is very clear among voters," said Mukhtar Abbas Naqvi, a BJP spokesman. "The general mood is to change the present regime."
The BJP confronts its own challenges. As it governs in three of the states where votes are being held, it faces anti-incumbency pressures, too. The BJP`s declared prime ministerial candidate could also cloud its message of change. L.K. Advani, an 81-year old Hindu nationalist and former government minister, has been a steadfast fixture of Indian politics.
Mr. Advani, in his speech to the same conference, accused the Congress party of being in "denial mode" -- trying to shift blame for India`s economic distress to global forces from its own mismanagement. The current government, he noted, allowed food prices to rise sharply before excessive credit-tightening measures stanched lending and caused new economic pain. He said the BJP management of the economy would be "radically different" and it would crack down on rampant corruption.
"India can`t afford a weak government with a failed leadership," he said.
Aside from the Congress Party and BJP, there are scores of smaller regional parties vying for space in a changed political landscape. Many have coalesced around local economic issues as well as concerns of religion and caste. One of the most powerful of the new parties, Bahujan Samaj Party, is led by a Dalit -- those on the lowest rung of India`s caste ladder. The BSP leader, Mayawati, who goes by a single name, is chief minister of the country`s largest province, Uttar Pradesh, in northern India. She has enlarged her party`s base to include politicians disaffected with India`s two biggest parties, Congress and BJP.
The expansive nature of India`s democracy also has exposed national and state governments to new pressures. Many Indian and overseas investors complain of political roadblocks to business and growth that don`t exist in other countries, like China. But Mr. Singh countered that India offered the world its own model of development. "We may have paid a price in terms of economic growth and efficiency, but we have gained as a free people," he said. "Let us never belittle our achievements."
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NEW DELHI--With the global economy darkening and a general election months away, two of India`s top leaders pledged government action to sustain growth and protect the poor.
Prime Minister Manmohan Singh, at a conference Friday, said India would be able to maintain 8% annual economic growth a rate that represents a slowdown from 9% last year but is still above the near-term forecasts of many economists. While the Indian prime minister didn`t offer specific policy prescriptions, he suggested the response to the gathering economic troubles would be aggressive.
No instrument of public policy will be spared," he said.
India is investing heavily in infrastructure, and has raised salaries for government employees and offered emergency loan relief for farmers. More public spending carries risks, namely a government deficit that has expanded well-beyond targets. But India`s leaders must also shepherd a poverty-ridden country through a global economic crisis and avoid political upheaval.
In a speech that followed the prime minister, Sonia Gandhi, the leader of the ruling Congress party, said concerns for the poor would guide the government`s future economic decisions. Liberalization would be accompanied by "sensible but not heavy-handed regulation," she said.
In a jab to the crowd of business leaders, Ms. Gandhi praised the nationalization of the country`s banks under her mother-in-law and former Prime Minister Indira Gandhi. Critics cite the move, four decades ago, as an example of the government`s heavy-handed intervention that shielded the country from private competition and dragged down the country`s growth. Defenders say it reassured depositors and stabilized the financial sector. "Every passing day bears out the wisdom of that decision," Ms. Gandhi said.
Until recently, India`s government officials were forecasting double-digit economic growth and the gradual further opening of sheltered sectors, such as retail, to foreign investors. But the remarks of the two Indian leaders reflect the new economic as well as political realities. Economic trouble in India poses risks to the Congress party, which heads a coalition government, and openings for its opponents.
Six state elections will be held by the end of the year and a national parliamentary vote -- which installs a new government and prime minister -- is expected early next year. The Bharatiya Janata Party, or BJP, is hoping to unseat its Congress by cobbling together a majority in the national Parliament.
"One thing is very clear among voters," said Mukhtar Abbas Naqvi, a BJP spokesman. "The general mood is to change the present regime."
The BJP confronts its own challenges. As it governs in three of the states where votes are being held, it faces anti-incumbency pressures, too. The BJP`s declared prime ministerial candidate could also cloud its message of change. L.K. Advani, an 81-year old Hindu nationalist and former government minister, has been a steadfast fixture of Indian politics.
Mr. Advani, in his speech to the same conference, accused the Congress party of being in "denial mode" -- trying to shift blame for India`s economic distress to global forces from its own mismanagement. The current government, he noted, allowed food prices to rise sharply before excessive credit-tightening measures stanched lending and caused new economic pain. He said the BJP management of the economy would be "radically different" and it would crack down on rampant corruption.
"India can`t afford a weak government with a failed leadership," he said.
Aside from the Congress Party and BJP, there are scores of smaller regional parties vying for space in a changed political landscape. Many have coalesced around local economic issues as well as concerns of religion and caste. One of the most powerful of the new parties, Bahujan Samaj Party, is led by a Dalit -- those on the lowest rung of India`s caste ladder. The BSP leader, Mayawati, who goes by a single name, is chief minister of the country`s largest province, Uttar Pradesh, in northern India. She has enlarged her party`s base to include politicians disaffected with India`s two biggest parties, Congress and BJP.
The expansive nature of India`s democracy also has exposed national and state governments to new pressures. Many Indian and overseas investors complain of political roadblocks to business and growth that don`t exist in other countries, like China. But Mr. Singh countered that India offered the world its own model of development. "We may have paid a price in terms of economic growth and efficiency, but we have gained as a free people," he said. "Let us never belittle our achievements."
...
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Are these the same guys who said in July that Crude will hit 0 per Barrel by end of 2008?...
In reply to:
Crude drops below $50/bbl mark
Posted by : MMB Messenger
Crude prices dropped 7% to below the USD 50 per barrel mark. This is the lowest level since May 2005. Prices slumped as bearish US jobs report intensified concerns of a long and deep global recession and further crushed fuel demand expectations. In after hours access trading, Nymex crude is at USD 48.47 per barrel.
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India can never be a super power. The reason lies in its own financial system that lies in Gold accumulating countries which is traditional centuries old . From so many centuries we have seen all the superpowers in world were relying less on Gold while keep progressing in all other things. India is big buyer of Gold compared to its GDP. Thats really shocking & you can see the economy gets several time manipulated for keeping gold prices steady rising & less volatile.
It clearly indicates that not growth not employment not any other economic issues but ultimatum is gold & this is how Indian system values all other issues like overall all round growth below its gold....
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Emerging economies such as India and China must be consulted in forging a solution to the world economic crisis, German Chancellor Angela Merkel said on Thursday.
Speaking at the same conference in Frankfurt, World Bank President Robert Zoellick warned that more action was needed to prevent the world financial crisis from turning into a human crisis.
The conference, the 10th German World Bank Forum, was devoted to "The Asian Century" now beginning.
German Chancellor Angela Merkel held talks with World Bank President Robert B Zoellick at the 10th German World Bank Forum in Frankfurt, central Germany, held on Thursday November 20, 2008. The global leaders are on a hunt to rid the global economy of the economic crisis engulfing the markets.
"It`s important that rules apply to everyone, that there are no blank zones," Merkel said, referring to efforts to reform the world financial system.
"That will only happen if Asia, and its big emerging economies such as India and China are involved."
Merkel added, "I can only hope that in this crisis we achieve more open trade, fair world trade, and that we don`t collapse into protectionism."
Zoellick told the conference, "We must remind ourselves that the poorest countries have faced the most serious difficulties as a result of the crisis."
He said the moves launched by the weekend summit of the world`s 20 major economies in Washington for a reshaping of the international financial architecture had been encouraging.
"But we have to do more if we want to avoid a human crisis," the World Bank chief said.
With this in mind, he called on the G20, which includes the Group of Seven leading industrial nations as well as China, Russia, India, Saudi Arabia and Brazil, to be expanded to include more nations from Africa.
"It`s worth looking into whether you add a representative or representatives from the poorer countries" to the G20, Zoellick said.
"It is important that poorer nations come and speak for themselves," he said
Source:IANS...
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Congress President Sonia Gandhi cautioned that it was "too early" to say that the global economic crisis had been contained but expressed confidence that the situation would throw up new opportunities for India in the future.
Speaking at the Hindustan Times Leadership Summit, Sonia said there was no need for India to get back to the era of controls.
“It is too early to say the economic crisis is contained. We believe in an open and not unregulated economy,” she said.
Sonia Gandhi, who spoke from a prepared text at the summit, unlike earlier occasions where there was a free-wheeling discussion among participants, said the financial crisis would affect the “most vulnerable” sections of society who had nothing to do with “fancy” financial instruments and had to contend with a hard day`s work.
“Should they become victims of a few bankers greed? It is our duty to ensure what action we must take for them.”
Sonia said regulation is a must in the current economic situation and liberalisation should continue within a framework.
“We will not be thrown off course by the winds buffeting us from abroad. No need for overreacting, let alone panic. No need for us to get back to the era of control over market. At the same time, we can’t allow things to go out of control. Liberalisation must be pursued within the framework of sensible regulation,” he said.
Invoking the memory of her mother in law Indira Gandhi, Sonia said the nationalisation of banks kept the banks stable during the global fiscal crisis.
“Our prudence has been most marked in the case of the financial sector. Let me take you back to Indira Gandhi`s much revived nationalisation of banks 40 yrs ago. Public sector financial institutions have given the economy the stability and the resilience we are now witnessing in the face of the economic slowdown,” she said.
Sonia also highlighted the need for a social security system and for more investment in public systems for the aam aadmi
“I have always believed that the public sector needs to invest in social and public infrastructure,” she said
Source:ibnlive...
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Industry leader may feel that manufacturing is different from running government is absolutely wrong. Both are same. you say government should reduce price, why don,t you. simple reason both want to run economy of there system. I feel we should be in this balance condition for atleast 6 months to make things stable. try to do bussness at maximum 10 to 20% margin. If 10% you may get volumn growth. at 20% you may get low growth. ...
In reply to:
India strong enough to grow at 8%: PM
Posted by : MMB Messenger
Speaking on the sidelines of the Hindustan Times Leadership Summit, Prime Minister Manmohan Singh said that the global economy is going through choppy waters. India will emerge stronger from this crisis, he added. According to Singh, there is a need for a global safety net against delinquencies of a few.
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Speaking on the sidelines of the Hindustan Times Leadership Summit, Prime Minister Manmohan Singh said that the global economy is going through choppy waters. India will emerge stronger from this crisis, he added. According to Singh, there is a need for a global safety net against delinquencies of a few....
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Crude prices dropped 7% to below the USD 50 per barrel mark. This is the lowest level since May 2005. Prices slumped as bearish US jobs report intensified concerns of a long and deep global recession and further crushed fuel demand expectations. In after hours access trading, Nymex crude is at USD 48.47 per barrel....
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USD 45-46 will be touched & it is good support level for crude for today or next session....
In reply to:
Crude drops below $50/bbl mark
Posted by : MMB Messenger
Crude prices dropped 7% to below the USD 50 per barrel mark. This is the lowest level since May 2005. Prices slumped as bearish US jobs report intensified concerns of a long and deep global recession and further crushed fuel demand expectations. In after hours access trading, Nymex crude is at USD 48.47 per barrel.
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B J P leader Advani met more than dozen top industrialists and discussed
issues like acute shortage of liquidity, rupee depreciation and possible anti-dumping actions in some sectors were raised.
“The first priority of a future NDA government would be to remove insecurity and fear and bring back hope and confidence," Advani said. “Even though I am concerned about the health of our airlines, I am more concerned about the well being of our auto drivers and rickshaw pullers.”
With the focus on checking unemployment and generating more jobs, several longer term priorities emerged that will form the backbone of NDA`s economic agenda. These included urgent employment generation, strengthening agriculture sector, developing infrastructure and furthering urban development and reforming the financial sector while insulating it from domestic and global risks.
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rvk41...
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The speech of our FM makes everybody to make loss by taking position. Whenever he speeks in the channel, he says India has adequate liquility and there is nothing to panic. But he doesnt take any step for liquidityto ease. It is like a Doctor saying to the patient, dont worry we have lot of medicine to cure and the doctor will not give medicine to the patient. One thing is sure, the patient is going to die. The stock market is almost dead. In a day or two FM will speek in channel and he will tell dont worry there is lot of liquidity. I humbly request our FM to shut his mouth or be bold to say our bankers will not liquidate the fund as ther is risk right now. ...
