Posts Tagged ‘governments’

World Trade Organization (WTO) Chief Says Hopes of Doha Deal are Uncertain

The World Trade Organization (WTO) chief insisted members to resist protectionist pressure in the wake of the economic crisis, but said hopes of an early deal to free up international commerce are uncertain.

However, he said that in February this year, the global economic downturn was peaking while less than a year on; progress has been made but is not yet out of the woods.

Meanwhile, he said that the volume of world trade this year would decline a little more than 10%, which is unprecedented in modern times while in this environment, pressure for protectionist actions with their illusory gains for the domestic economy, will not necessarily diminish any time soon.

Further, success in completing the Doha round of trade talks next year as scheduled was vital to signal business and consumer confidence, and would strengthen the hand of governments as they confront protectionist pressures
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On the other hand, this will not occur unless they are all ready for heavy political lifting at home while there would be a “crunch time meeting” in the first quarter to check if the goal was attainable.

BULLION TURNING TO BILLION

Gold has always been one of the favorite avenues for investors to put their money during any economic uncertainty. We’re into a new phase of this bull market that’s been going on since 2004. Factors like the credit crisis, ups and downs in the global economy, the response of the governments and the monetary authorities set up a very positive environment for gold, not only in the near term, but many years to come.
On the contrary,jewelry demand, however, has fallen off a cliff—it’s almost non-existing right now and a lot of scrap is coming into the market due to very high prices. This is also one of the reasons for which we had witnessed some range bound moves in gold prices in past few months. (Two dynamics in the gold market were pulling against each other as strong investment demand and very weak jewelry demand.
Gold is up by roughly 250% since 1999 and approx. 25% from Sept. 2008 till date as we’re seeing money coming into the gold sector. I think the gold market is out of crisis mode. It has been recognized as an alternative, as a safe haven hedge. Sentiment among investors, especially individuals, is very positive. It’s mainly high net worth individuals who are buying the stuff up with a long-term view. Over the period of time we have also seen that investors are putting more and more money into gold as an investment. However, this increase in investment has come from tiny levels. Retail investment in gold remains tiny comparative to investments in equity and bond markets. Also, the physical gold market is such a tiny market comparative to equity, bond, currency and derivative markets that even small flows from these massively larger markets can result in outsize moves up in the gold price in future.

Gold has always been one of the favorite avenues for investors to put their money during any economic uncertainty.
Gold Coin

We’re into a new phase of this bull market that’s been going on since 2004. Factors like the credit crisis, ups and downs in the global economy, the response of the governments and the monetary authorities set up a very positive environment for gold, not only in the near term, but many years to come.

On the contrary,jewelry demand, however, has fallen off a cliff—it’s almost non-existing right now and a lot of scrap is coming into the market due to very high prices. This is also one of the reasons for which we had witnessed some range bound moves in gold prices in past few months. (Two dynamics in the gold market were pulling against each other as strong investment demand and very weak jewelry demand.

Gold is up by roughly 250% since 1999 and approx. 25% from Sept. 2008 till date as we’re seeing money coming into the gold sector. I think the gold market is out of crisis mode. It has been recognized as an alternative, as a safe haven hedge. Sentiment among investors, especially individuals, is very positive. It’s mainly high net worth individuals who are buying the stuff up with a long-term view. Over the period of time we have also seen that investors are putting more and more money into gold as an investment.

However, this increase in investment has come from tiny levels. Retail investment in gold remains tiny comparative to investments in equity and bond markets. Also, the physical gold market is such a tiny market comparative to equity, bond, currency and derivative markets that even small flows from these massively larger markets can result in outsize moves up in the gold price in future.

Lehman Blues?? Not Anymore ;) Market Scales New Heights ;)

lehman brothers

Shrugging off the deadly blow received at the time of Lehman Brothers’ collapse, stock markets in emerging countries, led by India, have moved significantly higher from the low levels witnessed a year ago.

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Analysts feel green shoots like recovery in economic growth and return of stability in the financial systems have led to a revival in confidence and risk appetites.

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Emergence of these green shots has brought confidence towards a full fledged recovery and return of the risk appetite, which is also reflected on the bourses which moved up significantly higher from their low levels.

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Experts seem to agree on the fact that Lehman is history and Indian markets are not under any pressure. They have recovered and are trading at good levels.

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The benchmark index Sensex, which is currently around 16,200 points, has gained nearly 20 per cent since September 15 last year, the day when Lehman filed for bankruptcy. The index had been at 13,531.27 points in the same day last year.

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Market analysts said the collapse of Lehman Brothers had been the ultimate blow for financial markets, which were already in deep bearish mood.

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“The closest victims were the capital markets of United States and that of Europe. The Indian markets also faced severe fall,” SMC Capitals Limited CEO and Equity Head Jagannadham Thunuguntla said.

However market analysts feels that India and China would play an important role in determining the global economic health in times to come.

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Analysts said that fortunately unlike other recessions which followed the bursting of asset bubbles, this time around apart from recapitalization of the financial system, the governments of the major economies of the world acted swiftly by slashing interest rates to unprecedented levels and providing fiscal stimuli.

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These measures have aided the return of stability to the financial system and economic activity.

The factors which have helped the Indian markets in recovery include re-election of the UPA government, enabling the political stability, and significant domestic demand.

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“These factors have brought back the interest of the FIIs into the Indian capital markets and enabled significant Foreign Institutional Investors inflows,” Thunuguntla added.

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