Posts Tagged ‘Economy’
There is a growing fear that Japan is quickly moving towards a prolonged recession and because of these fears its industrial production and consumer spending have considerably dropped.
In October, Japan’s industrial production dropped by 3.1 percent that was quite faster than expected.
Similarly, 3.8 percent drop was noticed in year on year consumer spending during October and it was also quite faster than analysts were expecting.
Richard Jerram, a Macquarie Securities economist, described the figures as ‘dreadful’.
Takumi Tsunoda, who is a senior economist at Shinkin Central Bank Research, says in this connection, “We weren’t expecting such quick falling in production, but many companies have been adjusting their production quite fast.”
Japan’s Nikkei stock lost almost 7% of its value, as the sufferings continued. After the news that Sony had halved its full-year profit forecast, a gloom spread over the market.
On the other hand, South Korea announced that growth in its economy was at s four-year low because of the current financial crisis.
South Korea’s benchmark stock index fell below 1,000 points for the first time since in more than three years.
South Korean electronic firm Samsung announced that it third-quarter profits were 44% down though there was a rise in sales.
The Nikkei fell below the 8,000 mark in afternoon trading in Tokyo and it happened first time in more than five years. A strong yen is a cause of concern about Japan’s export earnings.
On Tuesday, Asian stock markets opened quietly after dramatic rises of the previous two days.
In Japan, the Nikkei index was 1.4% down at noon and similarly shares in Taiwan and Australia were also down.
Wall Street also saw downward trend at the close of trading. After big rises in stocks on Monday, the investors took some profits and it was the basic factor behind slight downward trend.
The increasing fears that global economy may not easily recover from recession also became the cause to push the Dow Jones index 0.82% as investors are paying attention to worsening economic outlook.
According to some traders Wall Street might be nervous in the coming weeks because of increasing worries. Read the rest of this entry
General Electric (GE) has decreased its earning forecasts considering recent unrest in the financial markets. Now the 3rdQ profits are expected 43-48 cents per share while they were 50-54 per share in a previous forecast.
The company also decreases its earning forecast for the full-year to $19.5bn-$21bn that were $22bn-$23bn in the earlier prediction.
According to the company, many other steps are also being taken to boost its fund and it also includes suspension of its funds.
It has also been stated that the company may leave its dividend at $1.24 per share till the end of next year. It is happening first time that the company has not raised the payout since 1970. Read the rest of this entry
Isn’t a tragic with human beings facing with inflationary cycle in the world? Today, millions of people are combating with increasing prices of the oil and gasoline. So stunning is the rising inflation that has caused a recession just like 1930s in the U.S.
The oil prices increased at $138.54 per barrel in the United States that has effected other countries of the world and led towards an overall inflationary phase.
The Asian countries are deeply suffering from inflationary phase. The countries like Pakistan, India, Afghanistan, Iran, Indonesia, Bangladesh, Sri Lanka and Maldeep, etc are heavily struggling with the alarms and devastations of inflation. Read the rest of this entry
