G-20 summit has been concluded with no major surprising outcome. Lack of strong commitments has helped Yen to gain some value against US dollar. However, on Monday, US dollar has regained some value. The appreciation has been analyzed as an outcome of positive US data which in turn is the consequence of Fed rate hiking.
China economy
According to Bill English, New Zealand can sustain low inflation as the central bank aim to reduce borrowing costs, if needed. New Zealand is hoping to achieve economic stability amid the global financial crisis.
Bank of England has many choices to boost Britain's economy. The bank may slack its financial policy on fears that the country may exit the European Union.
Britain is losing its faith in the chancellor George Osborne as he is readying for the annual budget in the midst of global challenges facing the nation's economy. Poor economic conditions prevented the chancellor from achieving his election targets.
Iluka Resources said it will cease production in zircon operation at Jacinth-Ambrosia project in South Australia following fall in zircon prices. The company's decision will positively impact the global market.
The economy of Japan shrank during the fourth quarter of 2015 as a result of weak export and demand. The shrinking population also added to the economic slowdown.
The economy of Japan struggled last month according to a wave of data released by the Bank of Japan. The industrial production was down 1.4% over the prior month.
South Korean steelmaker POSCO announced a consolidated net profit, excluding minority interests, of 181 billion won for 2015, down from 626 billion won in the previous year.
Freeport-McMoRan said that it has planned to trim up to $10 billion debt through earnings from joint venture transactions and asset sales. The mining group also reported a loss of $4.1 billion for the fourth quarter.
US oil explorers are expected to report a combined loss of about $14 billion for the year 2015, as a result of the sharpest oil price slump in a generation. Bankruptcies and disappointing debt exchanges have led the oil explorers to cut thousands of staffs, trim dividends, and abandon drilling projects to preserve capital and resist insolvency.
The decreasing of China’s economic growth to the lowest rate in the last of 25 years has influenced the world’s economy. It made the International Monetary Fund slashed its global growth forecast for the third time in less than a year.
Business economists seem to be more doubtful regarding their companies' future profits and sales. According to a survey, these economists expect slower GDP growth.
The Federal Reserve Bank have found a new partner in its struggle to confirm interest rate increase screens through the US economy. The trend of Fed borrowing billions daily to set a base under its standard policy rate has been conquered by foreign monetary authorities, Bloomberg said.
Despite economy growth rate of over seven percent, the Indian stock markets are suffering from the selloff by foreign investors. The domestic stock markets may enter bear territory soon after the fall in Shanghai and Tokyo markets. The cash-strapped foreign investors are offloading in Indian stocks since November 2015. On the other hand, Asian stocks gaining momentum following the marginal rebound in oil price.
Capital outflows from developing markets were higher than it was anticipated last year, according to a report by Institute of International Finance. The reason behind this oceanic change in emerging markets cash flow is China, which dragged out 676 billion US dollar.
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