Posts Tagged ‘global economy’

U.S. Becoming Less Trustworthy? TILE Two-Liners 1.10.11 >> 1.14.11

Monday, January 10th, 2011

MONDAY

  • Portugal promises to pay you a handsome 7% interest rate if you lend it some money by buying a bond. Of course, the country may go bankrupt trying to pay you back. (BBC News)

TUESDAY

  • Economic growth in China, U.S., France, and Japan may lead the way to a good year for the rest of the world. (The Wall Street Journal)

WEDNESDAY

  • Whew! Portugal doesn’t have to bribe bond buyers with handsome rates after all. European markets stop freaking out about a potential bailout. (The Washington Post)

THURSDAY

  • Mother nature shows interest in finance, dumps water on Australia. Flooding could cost the country up to 1% in economic growth this year! (BBC News)

FRIDAY

  • You’re not the only one who should be worrying about your credit score – because of rising debt, the U.S. may lose its sparkling AAA credit rating. (The Wall Street Journal)

With India and Britain, The Empire Doesn’t Strike Back

Friday, August 6th, 2010

India experiences colonialism role reversal as Britain scrambles to hook into their budding economy.

  • The British Prime Minister, David Cameron, plans a visit to India that will focus on increasing trade between the two countries.
  • Mr. Cameron’s trip indicates the global economy’s shift towards developing nations and his commitment to latch onto India’s booming business world.
  • During Cameron’s trip he will ring the opening bell on the Bombay Stock Exchange, introduce a solar-powered mobile handset and deliver a speech entitled “U.K. and India: A New Economic Partnership” to bankers and businessmen.

Facts & Figures

  • British companies Marks & Spencer and Bentley Motors have started investing in India in recent years to tap into new wealth.

Best Quote:

“India is an incredibly dynamic market that will grow substantially in the next five to 10 years.” - Stephen Phipson, President, Smiths Detection.

The IMF is…

Tuesday, October 27th, 2009

The IMF is the International Monetary Fund, an organization established to encourage international trade and financial cooperation, stabilize exchange rates, and combat poverty. Countries that are members of the IMF contribute to the fund in gold and in their own currency, and they can then withdraw from the fund in order to pay off debts to other nations during times of deficit.

The Recession Might Be Over For US, But Not For Those Who Didn’t Cause It

Thursday, September 24th, 2009

The recession hit hard here in the U.S., but people in poor countries are really out of luck.

  • More and more people are being pushed into extreme poverty by the global recession, and the World Bank is asking the 20 largest countries to lend a hand.
  • Poor countries that didn’t have a hand in creating the global recession are being hit really hard. They are often forced to cut funding for vital programs in education, health care, and basic infrastructure.
  • To build a more sustainable future, the World Bank is pressing for global economic growth to be less dependent on U.S. consumer spending and for less-developed nations to play a more significant role. But to do so, they need aid and access to financing.

Facts and Figures

  • The Group of 20 meeting is scheduled for this week with the goal of evaluating the state of the world economy.
  • By 2010, the recession will have pushed 89 million people into extreme poverty.
  • Last year the top eight economies pledged to give $20 billion in agricultural aid to poor countries, but these pledges haven’t been entirely fulfilled.

Best Quote

“The April summit was for the financial sector, this summit needs to be for responsible globalization.” – Robert B. Zoellick, President of the World Bank Group

The World Trade Organization is…

Friday, August 21st, 2009

The World Trade Organization (WTO) is the international body that deals with trade issues between nations. It provides a forum for moderating any trade talks, but it also is an advocate for trade liberalization – it tries to remove trade penalties or obstacles that countries might have in place.

Moral Cleanup Or Reckless Crackdown?

Wednesday, July 1st, 2009

Here’s an interesting topic for debate: how should anti-vice programs be carried out? Below is the Russian government’s solution to the problem, but it’s a very controversial one.

  • In accordance with Prime Minister Putin’s anti-vice plan, the Russian government is closing every casino and slot-machine parlor in the country. This move will result in the loss of hundreds of thousands of jobs.
  • Casinos’ only option will be to relocate to one of four remote, backwoods areas of the country. However, none of these regions are prepared for such a move, and it is expected to take at least several years before a casino will be able to reopen there.
  • The gambling industry has proposed the creation of a regulatory body to keep the casinos clean and safe, but the government has refused to compromise.

Facts & Figures

  • The World Bank estimates that the Russian economy will decline by 7.9% in 2009.
  • According to the gambling industry, 400,000 workers will be thrown out of work as a result of the ban.
  • The gambling industry pays an estimated $1 billion in taxes annually.

Best Quote

“The authorities are taking this step without thinking at all. They have not considered what this decision means for the workers. With the crisis, it is going to be very difficult for us.” – Irina Mysachka, Supervisor at Moscow’s Shangri-La Casino

Does The Financial Crisis Mean The End Of Bollywood?!

Friday, June 12th, 2009

The financial crisis is reaching into industries across the globe – even ones which have experienced recent surges in popularity.

  • In recent years, studios, media companies, and financial institutions began to invest heavily in Bollywood films, as India’s growing middle class could more easily afford such leisurely activities.
  • Now, this $2 billion a year industry must adjust to the global financial downturn by curbing production and budget costs, and ultimately the amount of films that will be made.
  • Producers are negotiating for lower rates from actors, choreographers, and the film crew in an effort to keep costs down.

Facts & Figures

  • Bollywood received $140 million in 2007 and $700 million in 2008 but so far only $25 million in 2009 from foreign aid through mergers and acquisitions.
  • In 2008, Bollywood produced 1,000 films but in 2009, only 700 films are projected to be completed.
  • The average budget for a Bollywood film is $2 million and only 14 films Bollywood films have ever made more than $20 million at the box office.

Best Quote

“Everybody is going to bleed a little bit. Anything with a big star associated with it will find a way but a lot of smaller films are going to have trouble.” – Siddharth Roy Kapur, CEO of UTV Motion Pictures (one of India’s biggest film production companies)

First New York, Now New Delhi…

Friday, May 29th, 2009

The economic recession’s reach is apparently universal – it seems nowhere will escape the clutches of the economic downturn.

  • It seemed that India’s booming economy would be one of the few lucky survivors of the global economic meltdown. But now it looks as though what happened to the rest of the world is beginning to happen in India.
  • Most of the boom of the last 5 years was a result of investment – and since foreign investment has declined with the global economy, so has a good chunk of India’s growth. A report from the IMF says this reliance on foreign investment has made India’s economy particularly vulnerable.
  • Since cheap foreign loans are harder to come by, Indians are now forced to borrow from Indian banks. Unfortunately, the same tightening of credit that happened in America is happening among India’s domestic lenders.

Facts & Figures

  • At the end of 2008, the Indian economy’s rate of growth was at its lowest in 5 years: 5.3%.
  • In 2008, 38% of the Indian GDP was accounted for by investment. At one time, more than a third of these investors were foreign, but last year foreign investment fell to its lowest level in two years.
  • The Indian stock market dropped by 58% last year, though much of that loss has been recovered in the early part of 2009.

Best Quote

“If India wants to go back to the 8 to 9 percent growth rate, private investment and low cost of capital is essential.” – Jahangir Aziz, Chief Economist for India at JPMorgan Chase

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