Double dip recession might be happening in US!Corporate IMPERIALIST LPG Mafia ECONOMY Enjoys BLOOD BATH as IMMINENT RECESSION and DEEP Depression Ensures the DOLLAR HEGEMONY Breakdown. So Much So Hyped RELSILIENT and FUNDAMENATALLY Strong EXCLUSIVE SENFREESEX ECONOMICS of Brahaminical Market Dominating Hegemony Inflicted with PANIC Never Before!The message from this week's market rout is crystal-clear: investors have lost confidence in their politicians, who urgently need to do something dramatic to reduce risks to the global economy. In India, it means All Out Monoplistic Aggression against the Majority Masses, Excluded communities who have to bear the BURN of the Hegemony CRISIS. It also Means UNPRECEDENTED Push for Economic Ethnic Cleansing and Merciless Exploitation of Nature, Natural Resources and Nature Associated Communities, all on the Name of INCLUSION, DEVELOPMENT, Reorms and Ironically the Scapegoat known as AAM AADMI!Brahaminical Parties Stand United to Sustain Post Modern Manusmriti Apartheid Rule and Parliament is literally Hijacked by LPG Mafia. Only Billionairs do Represent the ENSLAVED Masses! Policy Making and Governance, Media and Intelligentsia, Civil Society - everything DETERMINED to Strengthen the FREE Market But the House of CARDS, the APPLE Cart is all ste to UPSET. DOLLAR HEGEMONY may NOT sustain and the Ruling Class LINKED Indian destiny with the DOOM`s day Ultimate!
Sensex plunges: Markets crashed due to external reasons, nothing domestic, says FM
Indian Holocaust My Father`s Life and Time - SEVEN HUNDRED TWO
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
http://basantipurtimes.blospot.com
Double dip recession might be happening in US!Not we, But New york Times declares the Ruthless Truth, sounding death Knell for the Global Corporate Free Market Hegemony aligned with Zionist Brahaminical System!Now or Never, it is High Time to Launch Global LIBERATION Resistance like ARAB SPRING!
05/08/2011
At the Multi Commodity Exchange, gold for delivery in most-active October shot up by Rs 224, or nearly 0.9%, to a new high of Rs 24,289 per 10 grams, with a business turnover of 3,431 lots. It had closed 1.04% higher in the previous session.
Similarly, the metal for delivery in August gained Rs 165, or 0.71%, to Rs 24,050 per 10 grams, with a business turnover of 20 lots.
Analysts attributed the gains in gold futures to a firming trend overseas where the metal soared to a record as investors sought an alternative to currencies and as debt concerns in the US and Europe spurred demand for a protection of wealth.
In addition, a weaker rupee also supported the rise in dollar-denominated gold prices at futures trade here.
Meanwhile, gold climbed to a new high of $1,684.70 an in New York last evening.
Source: PTI
05/08/2011
As the stock benchmark Sensex crashed by over 700 points to slip below 17,000-point level for the first time since June 2010, the government said that the markets were reacting in a panic mode due to plunge in overseas markets.
"Our view is that our fundamentals are very strong and our markets will be able to overcome this panic reaction," Economic Affairs Secretary R Gopalan said.
"I am sure the investors will find merit in investing in our markets and the markets will soon recover," he added.
The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip back into recession. Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
Gopalan said the stock market plunge had nothing to do with the fundamentals of the economy. "Indian economy is doing very well. Even the PMEAC (Prime Minister's Economic Advisory Council) projected a growth rate of 8.2% for this year and the government is very keen to hold the fiscal deficit at 4.6%," he noted.
In Friday's trade, stocks of companies with significant focus on exports and interest rate-sensitive indices were among the worst hit, on fears that they might be affected more by uncertainty in the US and other foreign markets.
Gopalan said investors might have turned nervous "because of the global condition, especially when the US conditions are not that good. European markets are not doing well because of certain unsettled things in Spain and Italy. Obviously the market is reacting in a little panic mode," he added.
Gopalan said almost all the emerging markets were doing well and Indian markets should also recover soon.
Source: PTI
Corporate IMPERIALIST LPG Mafia ECONOMY Enjoys BLOOD BATH as IMMINENT RECESSION and DEEP Depression Ensures the DOLLAR HEGEMONY Breakdown. So Much So Hyped RELSILIENT and FUNDAMENATALLY Strong EXCLUSIVE SENFREESEX ECONOMICS of Brahaminical Market Dominating Hegemony Inflicted with PANIC Never Before!The message from this week's market rout is crystal-clear: investors have lost confidence in their politicians, who urgently need to do something dramatic to reduce risks to the global economy. In India, it means All Out Monoplistic Aggression against the Majority Masses, Excluded communities who have to bear the BURN of the Hegemony CRISIS. It also Means UNPRECEDENTED Push for Economic Ethnic Cleansing and Merciless Exploitation of Nature, Natural Resources and Nature Associated Communities, all on the Name of INCLUSION, DEVELOPMENT, Reorms and Ironically the Scapegoat known as AAM AADMI!Brahaminical Parties Stand United to Sustain Post Modern Manusmriti Apartheid Rule and Parliament is literally Hijacked by LPG Mafia. Only Billionairs do Represent the ENSLAVED Masses! Policy Making and Governance, Media and Intelligentsia, Civil Society - everything DETERMINED to Strengthen the FREE Market But the House of CARDS, the APPLE Cart is all ste to UPSET. DOLLAR HEGEMONY may NOT sustain and the Ruling Class LINKED Indian destiny with the DOOM`s day Ultimate!
05/08/2011
The plunge in investors' wealth, which is notional in nature and is measured in terms of cumulative value of all listed stocks, was more than Rs 2.5 lakh crore at one point of time when the benchmark Sensex had plunged over 700 points to below the 17,000-point level.
However, the markets managed to recover nearly half of the losses and some buying at lower levels in afternoon trade helped the Sensex close 387.31 points down at Rs 17,305.87.
Still, at the end of the day, the total investors' wealth stood at Rs 6,349,524.09 crore -- down from Rs 6,482,649.67 at the end of yesterday's market closing, as per the BSE data.
The cumulative losses for investors over the past four trading sessions is estimated at about Rs 4 lakh crore, as the Sensex fell by about 1,000 points in this period.
In today's trade, only three out of 30 Sensex stocks managed to register gains. Together, the market value of all the 30 Sensex companies fell by more than Rs 56,000 crore.
Some of the biggest losses were seen in blue-chips like TCS, Reliance Industries, Infosys, NTPC, ICICI Bank and Bharti Airtel.
While TCS lost more than Rs 7,800 crore, RIL and Infosys lost about Rs 6,800 crore each. While NTPC lost over Rs 4,000 crore, BHEL saw its market value dipping by about Rs 3,500 crore and companies like Bharti Airtel and ICICI Bank lost about Rs 3,000 crore each.
However, ONGC added about Rs 2,500 crore to its market value, while modest gains of about Rs 200 crore was seen by Cipla and Hindalco each.
Source: PTI
05/08/2011
Nearly 46 million Americans receive food stamps out of a population of some 311 million people, the US Department of Agriculture, which administers what's officially called the Supplemental Nutrition Assistance Programme reported Thursday.
The continued high unemployment and the weak US economy have contributed to the explosive growth of the food stamp programme with no end in sight to the monthly increases, CNN said noting that 27 million people were dependent on food stamps in October 2007.
Under the food stamps programme, an eligible individual gets $200 a month in food stamps - in the form of a debit card that can be used at supermarkets and stores to buy authorised food.
A two-person household gets $367 a month. A three-person household gets $526 a month. And a four-person household gets $668 a month.
Source: IANS
Concerns over the weak U.S. recovery and Europe's inability to tame its spreading debt crisis have turned an intense spotlight on the monthly non-farm payrolls report.
"The report is going to be very critical. One of the things that has been the largest headwind to economic growth has been the high unemployment rate," said Jason Ware, a senior research analyst at Albion Financial Group in Salt Lake City, Utah.
U.S. stocks on Thursday suffered their worst sell-off in two years. European stocks slumped to a level not seen since after the financial crisis in mid-2009.
Until recently, most observers believed the American economy was in a slow recovery, albeit one with very disappointing job growth. The official figures on gross domestic product showed the United States economy grew to a record size in the final three months of 2010, having erased the loss of 4.1 percent in G.D.P. from top to bottom.
With unemployment as high as 20% in may parts of the country, and even higher in some parts, accounting for those who have given up or stopped being reported as unemployed, the numbers of unemployed are becoming a staggering number in the millions of people without jobs.
05/08/2011
"Nearly one million bank employees in state run, private sector as well as foreign banks have struck work today (Friday). The nationwide response for the strike call is good," the convener of the United Forum of Bank Unions, C.H. Venkatachalam, told IANS in Chennai.
"Cheque clearing operations have also been impacted," said the senior office bearer of the forum, which is an umbrella body representing nine unions in the banking industry, but admitted that some private banks were functioning.
"ICICI Bank and HDFC Bank are functioning. We do not have a presence in them," he added. "We find that the government's equity capital in public sector banks is being diluted and reduced and consequently the private capital in our public sector banks is increasing," said Harvinder Singh of the All India Bank Officers' Confederation.
"We demand that public sector banks should not be privatised and government's equity capital in our banks should not be reduced. Do not avail World Bank loan to capitalise public sector banks."
Other demands include no merger of state-run banks, no outsourcing of permanent banking jobs to private sector, resumption of recruitment in right earnest, give jobs to family members on compassionate grounds and frame guidelines for housing, car and other loans. The union officials said they will meet Aug 10 in Bangalore to decide on the next course of action.
Source: IANS
Last week's "news on GDP shows the double dip has arrived – an expansion of only 1.3% and consumer spending up .1% in the second quarter. Astonishingly low by any account.. The debt ceiling trouble and lack of a longer term resolution to the deficit will make it worse," Douglas A. McIntyre writes for 24/7 Wall St.
"The US has entered a second recession. It may not be as bad as the first. Economists say that the Great Recession began in December 2007 and lasted until July 2009," McIntyre writes. "That may be the way that the economy was seen through the eyes of experts, but many Americans do not believe that the 2008-2009 downturn ever ended. A Gallup poll released in April found that 29% of those queried thought the economy was in a 'depression' and 26% said that the original recession had persisted into 2011."
McIntyre writes, "Perhaps the most powerful argument that the recession never ended or that a new one has begun is the persistence of unemployment. Fourteen million people are out of work. A third of those have been jobless for more than a year. May employment data showed the jobless rate rose unexpectedly and that the economy added only 58,000 jobs. Experts believe that the unemployment rate will not improve significantly until the monthly gain in jobs is consistently 300,000 jobs or more. And, at that rate the gains would have to go one for more than two years to bring the economy back to what is traditionally considered a reasonable unemployment figure."
"There are several signs that a recession is firmly in place again and that the downturn could last for several quarters," McIntyre writes. "Most are already easy for the average American to see."
10 signs the U.S. double-dip recession has begun:
1. Inflation: The consumer's ability to buy even the most basic clothing has been undermined
2. Investments have begun to yield less: The DJIA is up only 1% during the last three months and the S&P 500 is down slightly
3. The auto industry: May sales stalled. GM's revenue dropped by 1% compared to May of 2010. Ford's sales were down about as much
4. Oil prices: Recently, crude has moved back above $100
5. The federal budget: The deficit has caused a call for severe austerity measures which have already become part of the economics policies of countries from Greece to the UK to Japan. Job cuts in the U.S. will not be restricted to the federal level
6. China Economy Slows: US exports to China are key to the health of many American businesses
7. Unemployment: Unemployment creates two immediate problems. People without jobs drastically curtail their spending, which will ultimately affect GDP growth. The second is the need for tens of billions of dollars every year in government aid to keep the unemployed from becoming destitute.
8. Debt Ceiling: The United States debt ceiling,currently at $14.294 trillion, will probably be raised before the government has to cut back essential services on August 2
9. Access To Credit: The lack of access to credit has hurt the economic activity or both individuals and small businesses
10. Housing: Whatever the effects have been over the last three years, they are getting progressively worse as home values drop to decade lows
Much more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]
Related articles:
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Apple sales set to grow exponentially as Chinese telcos look to offer iPhone – July 25, 2011
http://macdailynews.com/2011/08/01/10-signs-the-u-s-double-dip-recession-has-begun/
By some measures, the world economy is in better shape to withstand shocks than it was in the aftermath of the failure of investment bank Lehman Brothers nearly three years ago. Corporate earnings are robust, banks have thicker capital cushions, big emerging markets are still expanding strongly and there has been no repeat of the global liquidity squeeze that sent the dollar soaring in late 2008.Indeed, after this week's 8.5 percent slump in global equities , a rebound might not be far off. Wall Street initially rose on Friday after the U.S. economy created 117,000 jobs last month, more than expected, only to slide back into the red. Any relief is likely to be short-lived until politicians get ahead of the markets and show they are tackling the root cause of the malaise -- excessive sovereign debt.
Sensex plunges: Markets crashed due to external reasons, nothing domestic, says FM
Finance Minister Pranab Mukherjee today said the plunge in the stock markets is purely due to external factors, like concerns over the US recovery and Euro Zone debt crisis, and hoped the volatility is temporary and it would recover soon.
"This is nothing domestic. It is substantially due to external factors," Mukherjee told reporters here.
The stock benchmark Sensex had crashed by over 700 points to slip below 17,000-point level for the first time since May last year. However, as the day progressed it made some recovery and the sensex closed 387 points lower.
"This is mainly because of the fact that some projection has been made about poor recovery of US. This has affected the market sentiment. Current volatility is temporary. Hope that there will be a recovery shortly", the minister said.
Mukherjee cited two-main reason for fall in stocks world over.
"Asian stocks are tumbling today in the light of sharp sell off in the world markets due to poor economic indicators in the US and fears of sovereign debt default contagion in Euro Zone spreading to other European countries," he said.
"Therefore, it has its downfall in the Indian market," the minister added.
The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip into recession.
Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
India will have to learn to live with volatility: RBI
GREATER NOIDA (U.P): With the stock markets plunging by over 700 points on overseas cues, the Reserve Bank today said India will have to learn to live with volatility in the global economy.
"Markets go up and down because of various factors. We don't go into this. Situation is becoming more complex and volatile by the day. So you have to live with that," RBI Deputy Governor K C Chakrabarty told reporters on the sidelines of a function organised by JRE Group of Institutes here.
The stock benchmark BSE Sensex had crashed by over 700 points to slip below 17,000-point level for the first time since June 2010 though it recovered later.
The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip into recession.
Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
Asked if RBI is looking at any measures in wake of the crash, the Deputy Governor said the situation requires an analysis.
"We don't take day to day market reaction. May be after 45-days the RBI Governor will articulate about the policy. It is a matter of worry if something is happening. It requires detailed analysis," he said.
On reports of China diversifying its assets from the US treasury, Chakrabarty said "diversification is always there. People who have lend to the US cannot divert so easily. It is in the entire world interest that US economy should survive".
But the Unipolar Super Power continues to flex its Military Scientific Muscles as NASA set to launch solar-powered spacecraft to planet Jupiter! What a Joke!However,NASA is on the verge of launching a new solar-powered spacecraft all the way to Jupiter.
The robotic explorer, named Juno, is atop an unmanned rocket at Cape Canaveral, Florida. Liftoff is scheduled for 11:34 a.m. (1534 GMT) on Friday.
It will take Juno five years to reach Jupiter, the largest planet in the solar system. The spacecraft will be powered by three huge solar panels. It will be the farthest any solar-powered craft has ever traveled. Previous Jupiter probes have relied on nuclear energy.
Jupiter is believed to be the oldest planet in the solar system. Astronomers hope to figure out the recipe for making planets, by uncovering the ingredients of this gas giant. Juno will spend at least one year circling Jupiter's poles.
World stock markets fell for the eighth straight session on Friday to the lowest since late 2010, with more losses feared if policymakers do not come to the rescue soon to stabilise the euro zone's debt crisis and prevent the US economy from sliding back into recession.
After panic overnight triggered the worst sell-off on Wall Street since the global financial crisis, investors in Asia slashed positions in equities and commodities and scrambled for the safety of cash and government bonds.
In India, Investors can breathe sigh of relief as benchmarks pulled back from day's lows and closed above crucial support levels. The market today witnessed the sharpest one-day fall in a year, on the back of selling by institutional funds, after concerns of double dip recession in the US and financial crisis in Europe rattled global equities.
Indices opened with a gap-down reacting sharply to the carnage on the Wall Street as investors fretted over mounting fears of stalled economy. Investors await U.S. jobs data for indication to ascertain whether the US economy is slipping into a recession. The Federal Reserve meet early next week will also be keenly watched as well.
"The immediate trigger for the markets could be the Fed meeting on Tuesday. It will be watched very carefully to get any message on what does the Federal Reserve thinks about further stimulus. Markets are expecting some comments about further stimulus looking at the recent spate of weak economic data from that country. In case there is an indication of a further stimulus from the Fed, it could be taken positively by the markets globally.
We believe that, it could be a short term positive for the markets but, from a longer term perspective, it will be negative from the US economy's perspective. For India also, it will be negative in the long term because commodity prices may once again shoot up," said Dipen Shah, Senior Vice President (Private Client Group Research), Kotak Securities.
According to analysts, the Indian economy is in better shape and today's melt-down was just a panic selling. The India GDP is likely to grow over 8 per cent and easing prices of commodities like crude oil & metals is expected to bring inflation under some control. The RBI may also go slow in hiking interest rates from here onwards.
"RBI should take a pause in hiking policy rates. If RBI needs to hike rates then it should be by 25 bps," said,Deepak Parekh, Chairman, HDFC in an interview to ET Now.
However, in the short-term, the Indian market will take cues from the US and Europe.
"In the near term, we would be very much coupled and therefore would follow the markets in the west. If we extend our horizon a bit longer, we should be okay and are likely to outperform.
Market outlook by experts on fear of recession in US & its impact on Indian markets
ET Bureau & Agencies
A scary drop in stocks and commodities threatens to squeeze life out of an already faltering US economy, with deal-making, investment in plants and equipment, and capital raising at risk of slowing down or freezing up.
Wall Street suffered its worst sell-off since early 2009 when the financial crisis was still taking a big toll, while crude oil declined as much as 6 per cent. The S&P 500 has now declined 10.7 per cent in the past 10 trading days.
Behind the panicky slide are fears the United States is staring at another recession following a series of ugly economic figures in the past week, and concerns Europe's sovereign debt crisis is worsening as it spreads to Italy and threatens the existence of the euro zone in its current form. Indian markets continued to reel under pressure as fears of double dip recession in the US and financial crisis in Europe gripped global equities. Investors now await US jobs data for confirmation whether the US economy is slipping into recession.
Experts are of the view that investors should start nibbling at selective stocks at lower levels and the market may witness pull-back rally in the next few sessions.
Here is what global market analysts have to say about the possibilty of a double dip US recession and its impact on the Indian markets:
http://economictimes.indiatimes.com/quickiearticleshow/9492387.cms
India gold futures extended gains for a fourth session on Friday to hit a new peak following a rally in overseas markets and a weaker rupee, which traded at its lowest level in five weeks, pushing physical traders to the sidelines ahead of a slew of festivals starting later next week.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) struck a record of Rs 24,300 per 10 grams, before trading 0.75 per cent higher at Rs 24,247.
Overseas gold edged up more than half a per cent as investors used bullion to shelter from the storm engulfing financial markets on concerns that the United States may be facing another recession and Europe's debt crisis is spreading to some of its largest economies.
The Indian rupee slumped to stay around a 5-week low as local shares tumbled, tailing a global equity sell-off, stoking fears of foreign fund outflows on renewed risk aversion.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Retail gold demand is expected to gain pace in August, when the festival and wedding seasons start in the world's biggest consumer of bullion.
"I don't think at this level demand will come in. It looks like the whole world is just trusting gold and nothing else. It is diffcult for people to digest new highs," said Pinakin Vyas, assistant vice-president with IndusInd Bank in Mumbai.
BSE Sensex: Stock crash erodes over Rs 1.3 lakh crore from investor wealth
MUMBAI: The investors were left poorer by over Rs 1.33 lakh crore after today's stock market crash, even as the market managed to recover nearly half of the losses suffered earlier during the day.
The plunge in investors' wealth, which is notional in nature and is measured in terms of cumulative value of all listed stocks, was more than Rs 2.5 lakh crore at one point of time when the benchmark Sensex had plunged over 700 points to below the 17,000-point level.
However, the markets managed to recover nearly half of the losses and some buying at lower levels in afternoon trade helped the Sensex close 387.31 points down at Rs 17,305.87.
Still, at the end of the day, the total investors' wealth stood at Rs 6,349,524.09 crore -- down from Rs 6,482,649.67 at the end of yesterday's market closing, as per the BSE data.
The cumulative losses for investors over the past four trading sessions is estimated at about Rs 4 lakh crore, as the Sensex fell by about 1,000 points in this period.
In today's trade, only three out of 30 Sensex stocks managed to register gains. Together, the market value of all the 30 Sensex companies fell by more than Rs 56,000 crore.
Some of the biggest losses were seen in blue-chips like TCS, Reliance Industries, Infosys, NTPC, ICICI Bank and Bharti Airtel.
While TCS lost more than Rs 7,800 crore, RIL and Infosys lost about Rs 6,800 crore each. While NTPClost over Rs 4,000 crore, BHEL saw its market value dipping by about Rs 3,500 crore and companies likeBharti Airtel and ICICI Bank lost about Rs 3,000 crore each.
However, ONGC added about Rs 2,500 crore to its market value, while modest gains of about Rs 200 crore was seen by Cipla and Hindalco each.
http://economictimes.indiatimes.com/markets/stocks/market-news/bse-sensex-stock-crash-erodes-over-rs-13-lakh-crore-from-investor-wealth/articleshow/9494872.cms
5 AUG, 2011, 10.09AM IST, NEW YORK TIMES
Double dip recession might be happening in US
RELATED VIDEOS
It has been three decades since the United States suffered a recession that followed on the heels of the previous one. But it could be happening again. The unrelenting negative economic news of the past two weeks has painted a picture of a US economy that fell further and recovered less than we had thought.
When what may eventually be known as Great Recession I hit the country, there was general political agreement that it was incumbent on the government to fight back by stimulating the economy. It did, and the recession ended.
But Great Recession II, if that is what we are entering, has provoked a completely different response. Now the politicians are squabbling over how much to cut spending. After months of wrangling, they passed a bill aimed at forcing more reductions in spending over the next decade.
If this is the beginning of a double dip, it will have two significant things in common with the dual recessions of 1980 and 1981-82.
In each case the first recession was caused in large part by a sudden withdrawal of credit from the economy. The recovery came when credit conditions recovered.
And in each case the second recession began at a time when the usual government policies to fight economic weakness were deemed unavailable. Then, the need to fight inflation ruled out an easier monetary policy. Now, the perceived need to reduce government spending rules out a more accommodating fiscal policy.
The US economy fell into what was at first a fairly mild recession at the end of 2007. But the downturn turned into a worldwide plunge after the failure of Lehman Brothers in September 2008 led to the vanishing of credit for nearly all borrowers not deemed super-safe. Banks in the United States and other countries needed bailouts to survive.
The unavailability of credit caused a decline in world trade volumes of a magnitude not seen since the Great Depression, and nearly every economy went into recession.
But it turned out that businesses overreacted. While sales to customers fell, they did not decline as much as production did.
That set the stage for an economic rebound that began in mid-2009, with the National Bureau of Economic Research, the arbiter of such things, determining that the recession ended in June of that year. Manufacturers around the world reported rapidly rising orders.
Until recently, most observers believed the US economy was in a slow recovery, albeit one with very disappointing job growth. The official figures on gross domestic product showed the US economy grew to a record size in the final three months of 2010, having erased the loss of 4.1 per cent in GDP from top to bottom.
Then last week the government announced its annual revision to the numbers for the past several years. New government surveys indicated Americans had spent less than previously estimated in 2009 and 2010 on a wide range of things, including food, clothing and computers. Tax returns showed Americans even cut back on gambling. The recession now appears to have been deeper - a top-to-bottom fall of 5.1 per cent - and the recovery even less impressive. The economy is still smaller than it was in 2007.
http://economictimes.indiatimes.com/news/international-business/double-dip-recession-might-be-happening-in-us/articleshow/9489825.cms
05/08/2011
Sensex nose-dived 364 points in opening trades and continued to remain under pressure due to heavy selling in index heavyweights-Infosys, Reliance Industries and ICICI Bank. The BSE benchmark index touched a low of 16,990 in noon trades. Recovery in ONGC and Larsen & Tourbo in late trades helped the index trim losses. The Sensex finally ended at 17,306, down 387 points the Nifty closed at 5,211, down 120 points.Both the benchmark indices were down 5% for the week.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
US markets clocked their biggest percentage drop since 2008 on global growth concerns. Markets in Asia were also hammered badly, Hang Seng Index declined 4.3%, the Shanghai Composite index plunged almost 2% and Japan's Nikkei Stock Average also tumbled 3.7%.
While the selling in commodities might help the Indian markets, by mitigating concerns on inflation and interest rates front, a sustained weakness in the global economy might impact the exports. Dipen Shah, Senior Vice President (Private Client Group Research) from Kotak Securities said, "the overall GDP growth could also moderate in case exports are hit badly. However, exports form only about 18% - 20% of the overall GDP and hence, the impact, if any, should be muted."
Markets recover partially, Sensex down 450 pts
Updated at 3.30 pm: Markets trimmed losses in late noon trades, owing to buying in ONGC. A marginal recover in European markets also played its part. The Sensex, after opening at 17,350 touched a low of 16,991. The index has recovered somewhat and is now at 17,248 - down 444 points. Nifty is down 137 points at 5,194. The NSE benchmark index had touched a 52-week low of 5,120.
At 01.40pm: Markets recovered partially, but continued to trade lower on back of losses in index heavyweights - Infosys, RIL and ICICI Bank. Selling pressure in IT and realty stocks also weighed. The BSE Sensex was at 17,241down 450 points and the Nifty slipped to 5,191, down 140 points.
At 01.15pm: The markets continued witnessing a rapid sell-off in the noon trades with both the benchmark indices at fresh calendar year lows.
The BSE Sensex was at 17,124, down 569 points and the Nifty plunged to 5,149, down 183 points. The Sensex witnessed the worst opening in nearly two years - at 17,350 - down over 340 points. The index slipped below the 17,000-mark to touch a low of 16,991 on persistent selling pressure in index heavyweights mainly IT stocks.
The BSE IT index has slumped 5% to 5,390 after an overnight slide in US markets. US is the biggest market for services of Indian IT firms. Infosys and TCS, alone, account for around 25% of the total losses in the noon trades, with the former accounting for a 100-point cut on the Sensex, and the latter another 50-odd points. Realty, consumer durables and TECk dropped around 5% each.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered very badly on worries of US economic health. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor's 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%. Asian markets also tumbled with the Hang Seng down 5%, with Nikkei, Straits Times and Seoul Composite following close behind.
Worries of the hike in interest rates slowing down corporate earnings growth further also weighed on investor sentiments. Interest rate and export sensitive, blue-chip stocks have tumbled this morning. 11 out of the Nifty 50 stocks have touched a new 52-week low, including metal bigweights - Sail, Hindalco and Jindal Steel.
Reliance Industries, has slipped nearly 4% to Rs 781 after outputs from the KG-D6 fields fell 27% to around 47 million standard cubic meters per day in June.
Cipla was trading on a flat note, down 0.4% at Rs 305, ahead of its results today.
The BSE market breadth continued to be remarkably negative. Out of 2,809 stocks traded, 2,517 stocks have declined while 246 have advanced.
At 12.35: Relentless selling has taken markets to fresh calendar year lows. The Sensex is now down over 600 points at 17,080, and the Nifty has plunged 184 points to 5,147.
At 11.30 am: The markets continue to languish near the lows on extremely negative cues from the global peers. The Sensex witnessed the worst opening in nearly two years - at 17,350 - down over 340 points. The index moved lower on selling pressure in metal and IT stocks and touched a low of 17,210. The index is now down 457 points (2.5%) at 17,236. The Nifty has plunged 142 points at 5,189.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered very badly on worries of US economic health. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor's 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%. Asian markets also tumbled with the Hang Seng down 5%, with Nikkei, Straits Times and Seoul Composite following close behind.
Worries of the hike in interest rates slowing down corporate earnings growth further also weighed on investor sentiments. Interest rate and export sensitive, blue-chip stocks have tumbled this morning. 11 out of the Nifty 50 stocks have touched a new 52-week low, including metal bigweights - Sail, Hindalco and Jindal Steel.
India's most valuable stock, in terms of market weightage, Reliance, slipped has slipped nearly 3% to Rs 790 after outputs from the KG-D6 fields fell 27% to around 47 million standard cubic meters per day in June.
BSE IT index has slumped 4.5% to 5,426 after the slide in US markets. US is the biggest market for services of Indian IT firms. Realty, auto and bankex dropped around 3% each.
Cipla was trading on a flat note ahead of its results today. ONGC, on the other hand, gained 0.7% to Rs 275.
The BSE market breadth continued to be extremely negative. Out of 2,653 stocks traded, 2,280 stocks have declined while 317 have advanced.
At 11am: Markets nose-dived in opening trades following sell-off in equities across the globe over sovereign crisis and global growth concerns. The Nifty slipped 134 points, to 5,197, and the BSE Benchmark index declined 343
points, at 17,350 at the opening bell. This was the worst market opening in nearly last two years. On November 6, 2008, the index had opened with a negative gap of 364 points.
The Sensex touched a low of 17,220, and is now down 415 points at 17,277. The NSE Nifty has shed 130 points at 5,201. Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered badly on worries of US economic health. The Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor's 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%. In Asia, the Hang Seng Index declined 4.2%, while the Shanghai Composite index plunged almost 2% and Japan's Nikkei Stock Average also tumbled 3.4%.
Crude was heading for biggest weekly drop in three months on anticipation that growth may slow down. Brent Crude slipped 3% and was hovering around $107/ barrel. Relatively saver havens like currencies such as Yen and Swiss franc, and bonds were temporarily attractive investor interest.
Analysts said that after a deep cut in opening trades markets may continue to remain under pressure until global conditions improve. India Infoline Financial Services in the morning note said, "A drop in crude is good for the Indian markets. All eyes will now be on the US monthly jobs report given the mounting concern over the health of the US economy."
Index heavyweight made deep cuts in opening trades. ICICI Bank, Infosys and L&T plummeted over 3% in the morning session. Reliance Industries slipped below Rs 800 level, down 2% to Rs 759. Only one component on the Sensex was trading in the green, ONGC was up over 0.5%. On the sectoral front metal stocks were the worst hit following the rout in commodities globally over bleak growth outlook. Sterlite Industries, Hindalco were down almost 4% each, and Sesa Goa declined 2%. All three stocks hit 52 week low in opening trades.
Also BSE IT index slipped over 3% on concerns that outsourcing demand may get affected if clients in US and Europe resort to spending cuts. Infosys and TCS slipped over 3% each, and Wipro plunged 2.5%.
From the broader markets, the BSE midcap and the smallcap indices were down over 2.5% each. Market breadth was extremely negative, 1664 stocks declined for 190 stocks which advanced.
Source: Business Standard
Markets plunge to new low in USA, Oz
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Some Asian stock markets fell by more than 5 per cent. The Euro STOXX 50 futures stock markets were down 3 per cent while US stock futures > eased 0.2 per cent, with investors worldwide waiting for US employment figures due later in the day that could trigger further selling if the jobs picture disappoints.
"Equity valuations are already pretty low but sentiment keeps deteriorating, so why come in and buy now?" said Shane Oliver, head of investment strategy at Sydney-based AMP Capital, which has more than $100 billion in assets under management.
Investors are looking for stronger US and European policy responses, but it may be a while until they see another dose of quantitative easing from the Federal Reserve or a stop-gap measure in Europe, Oliver said, adding that his firm had spent the past month neutralising its overweight positions.
Complicating matters was that Japan and Switzerland have intervened this week to knock down their currencies, which were considered the safest in the developed world. That has caused some safety-seeking investors to think twice about stashing money there when financial market volatility is spiking.
So far, retail investors were participating in the heavy selling but institutional equity investors in Asia were not completely liquidating their positions, instead continuing to cut riskier bets and protect their portfolios.
The benchmark MSCI all-country world stocks index fell 1 per cent to the lowest since Dec. 1, 2010. The index has slumped nearly 11 per cent since late July.
REALITY CHECK
Japan's Nikkei share average fell 3.7 per cent to the lowest since the week following the country's massive earthquake and tsunami in March.
Asian stock markets tumbled Friday amid fears the US may be heading back into recession and Europe's debt crisis is worsening. The sell-off follows the biggest one-day points decline on Wall Street since the 2008 financial crisis.
Oil extended sharp losses to fall below $86 a barrel amid expectations a slowing global economy will undermine demand for crude.
Japan's Nikkei 225 stock average slid 3.7 per cent to 9,303.95 and Hong Kong's Hang Seng dived 4.8 per cent to 20,844.59. China's Shanghai Composite Index lost 1.9 per cent to 2,633.52.
``Losses today have been indiscriminate,'' said IG Markets strategist Ben Potter in a report. ``The big question on everyone's mind is what will happen across European and US markets tonight and will there be any form of emergency policy response?''
The Dow closed Thursday down 512.76 points, at 11,383.68. It was the steepest point decline since Dec. 1, 2008.
Thursday's decline was the ninth-worst by points for the Dow. In per centage terms, the decline of 4.3 per cent does not rank among the worst. On Black Monday in 1987, for example, the Dow fell 22 per cent.
Investors fretted over the US economic recovery ahead of Friday's release of crucial jobs figures for July, which often set the tone in markets for a week or two.
Many were also rattled by the lack of agreement in Europe about debt and how to stabilize the euro, said Tom Kaan of Louis Capital Markets in Hong Kong. He said they were watching to see if the US Federal Reserve launches a new stimulus effort.
``It's a general fear that is clouding the markets at the moment,'' Kaan said.
MUMBAI: Indian markets plunged along with other global equities on renewed fears of double dip recession in the US and financial crisis in Europe. All the sectoral indices were in the red with metals, IT and realty stocks beaten down badly. ...
MUMBAI: Indian markets continued to reel under pressure as fears of double dip recession in the US and financial crisis in Europe gripped global equities. Investors now await US jobs data for confirmation whether the US economy is slipping into ...
Mumbai, Aug 5 (IANS): Fears of a double-dip recession in US markets, which triggered the worst fall in over two years at Wall Street Thursday, led to panic selling at Indian bourses Friday with benchmark indices for Indian equities closing more than 2 ...
Markets across the region buckled under fears that the global economy could be facing adouble-dip recession amid concerns over the US economy. The market was also affected due to sharp fall in the US market. Weak Asian and European markets also aided ...
High intraday volatility was witnessed as the key benchmark indices pared losses after a steep intraday slide triggered by fears of a possible US double-dip recession and worsening European sovereign-debt woes. The barometer index BSE Sensex regained ...
The market today witnessed the sharpest one-day fall in a year after concerns of double dip recession in the US and financial crisis in Europe gripped global equities. Bombay Stock Exchange's Sensex ended at 17320.91, down 372.27 points or 2.10 per ...
Even if there is a double dip recession in the West, India may not be as get affected because it is a domestic consumption story. The Reserve Bank of India (RBI) may cut interest rates rather than hike rates given the dip in commodity prices," said ...
Investors' dumped stocks with significant export exposure to US markets after investors were spooked of a double-dip recession resulting in a worst sell-off on US bourses. Also, the companies with significant exposure to rising interest rates in ...
The key indexes in Australia, Hong Kong, Japan and South Korea are declining between 1.9 percent and 2.8 percent, as the euphoria over the US debt deal has given way to apprehensions over a double-dip recession. The benchmark 30-share Sensex is ...
(RTTNews) - The Indian market fell sharply on Wednesday, extending recent losses, as downbeatUS consumer spending data added to worries that the world's largest economy might be slipping into a double-dip recession. Worries about debt contagion in ...
Indian markets joined a global sell-off triggered by fears of a double dip recession in the US. The benchmark indices fell over 2 per cent but managed to close well above the intra-day lows, indicating the return of some strength after a panic sell-off ...
New Delhi - India's benchmark Sensex index fell by over 2 per cent on Friday following a sell-off by funds and investors over concerns of a recession in the US economy. The 30-share index of the Bombay Stock Exchange registered its sharpest single-day ...
After selling shares worth Rs 1300 crore in the last three trading sessions, FIIs sold equities worth Rs 1789 crore in today's trade, according to provisional data posted on BSE website. dip in theUS. Coupled with the ailing health of peripheral Euro ...
Fears of another dip to the recession in the United States have gripped traders, causing significant price falls on Wall Street and in bourses around the world. The benchmark Japanese Nikkei, the Chinese Shanghai Composite index and Hong Kong's Hang ...
On Wall Street, stocks crashed overnight to their worst levels of the year amid continued worries about the economic outlook, with fears about the possibility of a double-dip recession creeping into the markets. The Dow plunged 4.3 percent, ...
The benchmark indexes Sensex and the Nifty slid about a percent each on Wednesday, extending recent losses, as downbeat US consumer spending data added to worries that the world's largest economy might be slipping into a double-dip recession. ...
Global markets expect a double dip recession in United States and Europe as developed economies are expected to slow down going forward. Going forward the developed economies will show some sort of slowdown but that will be good factor for economies ...
Indian shares staged a strong intraday recovery after fears of a possible US double-dip recession and worsening European sovereign-debt woes pushed the Sensex and the 50-unit S&P CNX Nifty to their lowest level in more than 13 months. ...
Indian shares slumped today, 5 August 2011, in a global rout in equities triggered by fears of a possible US double-dip recession and worsening European sovereign-debt woes. The barometer index BSE Sensex today, 5 August 2011, hit its lowest level in ...
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. ...
MUMBAI: Indian markets were witnessing a sharp selling pressure as fears that the US economy is slipping back in recession spooked sentiments across global equities. All the sectoral indices were in the red with metals, IT and realty stocks beaten down ...
Nearly one in every five stocks in the BSE 500 index has hit fresh yearly lows in the last four trading sessions as the markets continued their downward trend on global concerns and signs of a slowdown ...
Asian markets tumbled on Friday after the overnight selloff on Wall Street, on fears the United States is staring at another recession and that Europe's sovereign debt crisis is swallowing two of its largest economies. By 0453 GMT, the MSCI's measure ...
It was a sea of red across world markets amid fear of a sharp slowdown in the US and deterioration of the eurozone credit crisis. The Dow Jones, S&P 500 and the Nasdaq index fell nearly 5% overnight. Asian markets fell ~2-4%. ...
Elsewhere in Asia, South Korea's Kospi shed 3.6 per cent to 1,945.72 and Taiwan's benchmark skidded 5.1 per cent to 7,891.66. Australia's benchmark dropped 4.1 per cent to 4,101.20 and India's Sensex shed 2.2 per cent to 17,312.04.
Investors, already fidgety after protracted political bargaining to raise the US debt limit and worries that Italy and Spain are getting deeply embroiled in Europe's debt crisis, searched for assets considered safer such as gold.
Investors fled US stocks and dumped commodities on Thursday, rushing to the safety of government bonds on growing fears the global economy was weakening.
EQUITIES
The Standard & Poor's 500 stock index fell 60.27 points, or 4.78 percent, to 1,200.07 its lowest level since Dec. 1, 2010. The S&P 500 has fallen in 8 out of the last 9 sessions.
Thursday's 4.78 percent decline in the S&P 500 is the biggest one day drop since the 4.912 percent plunge on Feb. 10, 2009.
The S&P's 10.7 percent drop over the last 10 days is the worst 10-day period for the index since the 10 days ended March 6, 2009 when it was off 11.3 pct in that period.
The Dow Jones industrial average plunged 512.76 points, or 4.31 percent, to 11,383.68, its lowest close since Dec. 10, 2010. The Dow industrials have fallen 9 out of the last 10 sessions.
The Nasdaq Composite Index fell 136.68 points, or 5.08 percent, to 2,556.39, its lowest close since Dec. 2, 2010.
Trading volume in the US equity markets reached 13.8 billion shares, the busiest day since 14.48 billion shares changed hands in composite trading on June 25, 2010.
The CBOE Volatility index, Wall Street's "fear index," rose 35.4 percent, its largest daily percentage gain since Feb. 27, 2007.
FIXED INCOME
Biggest 6-day drop in long-dated yields, for both the US benchmark 10-year Treasury and the 30-year Treasury bond, since December 2008, at the height of the financial crisis.
US 2-year Treasury yields hit a record low of 0.26 percent.
US 10-year Treasury yields fell to 2.42 percent, lowest since October 2010.
US 30-year Treasury yields fell to 3.71 percent, the lowest since October 2010.
CURRENCIES
The US dollar, trading on the EBS platform, at one point rose as much as 4 percent against the Japanese yen before seeing gains cut.
The dollar traded up 2.5 percent to 79.03 yen at current prices, the largest one day percentage gain against the Japanese yen since mid-September 2010.
Japanese authorities intervened in the foreign exchange market on Thursday to stop the yen's rise, spending one trillion yen ($12.6 billion) in the process to help protect exporters. This unilateral intervention followed an internationally coordinated currency intervention to weaken the yen by the world's major central banks in March 2011. Japan also intervened in September of last year.
The euro suffered its biggest one day fall against the US dollar since July 11, 2011, dropping 1.5 percent at $1.4110.
The euro fell 1.9 percent at 1.0825 Swiss francs. * The dollar fell 0.5 percent to 0.7670 Swiss francs.
COMMODITIES
The 19-commodity Reuters-Jefferies CRB index, a global benchmark for the asset class, closed down 2.8 percent for its biggest daily decline since May 11, 2011.
Gold prices hit a record high in intraday trade of $1,684.90, but fell to close on Thursday to $1,651.40.
Silver plunged 7 percent to $38.76, its biggest one-day percentage loss since May 11, 2011.
US crude for September delivery settled at $86.63 a barrel, sliding $5.30, or 5.77 percent, the biggest daily percentage loss since May 5, 2011 and the lowest close since Feb. 18, 2011. Losses accelerated after breaking through a key technical support level at the June low of $89.61.
Crude oil trading volume in New York of nearly 914,000 contracts was 52.3 percent above the 30-day average, the highest since June 23, according to Reuters data. In London, volume hit 696,000 contracts, 46.7 percent above the 30-day average, the highest since June 24.
In London, ICE Brent for September delivery settled at $107.25 a barrel, falling $5.98, or 5.28 percent, the biggest one-day percentage loss since June 23's 6.1 percent drop. The settlement was the lowest since the June 27 close at $105.99.
US gasoline for September delivery closed at $2.7372 a gallon, falling 19.41 cents, or 6.62 percent, front-month gasoline's biggest one-day percentage loss since the May 11 7.6 percent fall. It hit the day's low at $2.7280, the lowest since the Feb. 28 intraday low of $2.70.
US gasoline's crack spread -- the profit refiners make per barrel after processing crude into motor fuel -- hit $28.05, the narrowest since July 6's 27.23.
"People have just become spooked by a crass failure of political leadership," said George Magnus, senior economic adviser at UBS in London.
In Magnus's view, the first-half slowdown in U.S. growth -- an important contributor to the current loss of confidence -- was inevitable given how long it will take households to reduce their own debt mountain and rebuild savings.
But he said markets wanted an end to the "political dysfunction" all too evident in the protracted wrangling over the U.S debt ceiling and the euro zone's inadequate response to the debt crisis gripping the periphery of the 17-member group.
"There are economic solutions to economic problems, but no politicians are stepping up to the plate," he said.
Sensex plunges: Markets crashed due to external reasons, nothing domestic, says FM
Indian Holocaust My Father`s Life and Time - SEVEN HUNDRED TWO
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
http://basantipurtimes.blospot.com
Double dip recession might be happening in US!Not we, But New york Times declares the Ruthless Truth, sounding death Knell for the Global Corporate Free Market Hegemony aligned with Zionist Brahaminical System!Now or Never, it is High Time to Launch Global LIBERATION Resistance like ARAB SPRING!
05/08/2011
Gold futures at new high of Rs 24,289 on global cues
Gold today hit yet another new record high of Rs 24,289 per 10 grams after the precious metal climbed to a record high in global markets.At the Multi Commodity Exchange, gold for delivery in most-active October shot up by Rs 224, or nearly 0.9%, to a new high of Rs 24,289 per 10 grams, with a business turnover of 3,431 lots. It had closed 1.04% higher in the previous session.
Similarly, the metal for delivery in August gained Rs 165, or 0.71%, to Rs 24,050 per 10 grams, with a business turnover of 20 lots.
Analysts attributed the gains in gold futures to a firming trend overseas where the metal soared to a record as investors sought an alternative to currencies and as debt concerns in the US and Europe spurred demand for a protection of wealth.
In addition, a weaker rupee also supported the rise in dollar-denominated gold prices at futures trade here.
Meanwhile, gold climbed to a new high of $1,684.70 an in New York last evening.
Source: PTI
05/08/2011
Investors in panic mode, market will recover: govt
Mumbai: Attributing the stock market crash to panic selling by investors, the government on Friday said the Indian bourses would recover soon as fundamentals of the economy remained strong.
As the stock benchmark Sensex crashed by over 700 points to slip below 17,000-point level for the first time since June 2010, the government said that the markets were reacting in a panic mode due to plunge in overseas markets.
"Our view is that our fundamentals are very strong and our markets will be able to overcome this panic reaction," Economic Affairs Secretary R Gopalan said.
"I am sure the investors will find merit in investing in our markets and the markets will soon recover," he added.
The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip back into recession. Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
Gopalan said the stock market plunge had nothing to do with the fundamentals of the economy. "Indian economy is doing very well. Even the PMEAC (Prime Minister's Economic Advisory Council) projected a growth rate of 8.2% for this year and the government is very keen to hold the fiscal deficit at 4.6%," he noted.
In Friday's trade, stocks of companies with significant focus on exports and interest rate-sensitive indices were among the worst hit, on fears that they might be affected more by uncertainty in the US and other foreign markets.
Gopalan said investors might have turned nervous "because of the global condition, especially when the US conditions are not that good. European markets are not doing well because of certain unsettled things in Spain and Italy. Obviously the market is reacting in a little panic mode," he added.
Gopalan said almost all the emerging markets were doing well and Indian markets should also recover soon.
Source: PTI
Corporate IMPERIALIST LPG Mafia ECONOMY Enjoys BLOOD BATH as IMMINENT RECESSION and DEEP Depression Ensures the DOLLAR HEGEMONY Breakdown. So Much So Hyped RELSILIENT and FUNDAMENATALLY Strong EXCLUSIVE SENFREESEX ECONOMICS of Brahaminical Market Dominating Hegemony Inflicted with PANIC Never Before!The message from this week's market rout is crystal-clear: investors have lost confidence in their politicians, who urgently need to do something dramatic to reduce risks to the global economy. In India, it means All Out Monoplistic Aggression against the Majority Masses, Excluded communities who have to bear the BURN of the Hegemony CRISIS. It also Means UNPRECEDENTED Push for Economic Ethnic Cleansing and Merciless Exploitation of Nature, Natural Resources and Nature Associated Communities, all on the Name of INCLUSION, DEVELOPMENT, Reorms and Ironically the Scapegoat known as AAM AADMI!Brahaminical Parties Stand United to Sustain Post Modern Manusmriti Apartheid Rule and Parliament is literally Hijacked by LPG Mafia. Only Billionairs do Represent the ENSLAVED Masses! Policy Making and Governance, Media and Intelligentsia, Civil Society - everything DETERMINED to Strengthen the FREE Market But the House of CARDS, the APPLE Cart is all ste to UPSET. DOLLAR HEGEMONY may NOT sustain and the Ruling Class LINKED Indian destiny with the DOOM`s day Ultimate!
05/08/2011
Stock crash erodes over Rs 1.3 lakh crore from investor wealth
Mumbai: The investors were left poorer by over Rs 1.33 lakh crore after today's stock market crash, even as the market managed to recover nearly half of the losses suffered earlier during the day.
The plunge in investors' wealth, which is notional in nature and is measured in terms of cumulative value of all listed stocks, was more than Rs 2.5 lakh crore at one point of time when the benchmark Sensex had plunged over 700 points to below the 17,000-point level.
However, the markets managed to recover nearly half of the losses and some buying at lower levels in afternoon trade helped the Sensex close 387.31 points down at Rs 17,305.87.
Still, at the end of the day, the total investors' wealth stood at Rs 6,349,524.09 crore -- down from Rs 6,482,649.67 at the end of yesterday's market closing, as per the BSE data.
The cumulative losses for investors over the past four trading sessions is estimated at about Rs 4 lakh crore, as the Sensex fell by about 1,000 points in this period.
In today's trade, only three out of 30 Sensex stocks managed to register gains. Together, the market value of all the 30 Sensex companies fell by more than Rs 56,000 crore.
Some of the biggest losses were seen in blue-chips like TCS, Reliance Industries, Infosys, NTPC, ICICI Bank and Bharti Airtel.
While TCS lost more than Rs 7,800 crore, RIL and Infosys lost about Rs 6,800 crore each. While NTPC lost over Rs 4,000 crore, BHEL saw its market value dipping by about Rs 3,500 crore and companies like Bharti Airtel and ICICI Bank lost about Rs 3,000 crore each.
However, ONGC added about Rs 2,500 crore to its market value, while modest gains of about Rs 200 crore was seen by Cipla and Hindalco each.
Source: PTI
05/08/2011
One in 7 Americans lives on food stamps
Washington: Believe it or not, one in seven Americans - 15 per cent of the country - now need government-provided food stamps simply to survive, according to latest government figures.
Nearly 46 million Americans receive food stamps out of a population of some 311 million people, the US Department of Agriculture, which administers what's officially called the Supplemental Nutrition Assistance Programme reported Thursday.
The continued high unemployment and the weak US economy have contributed to the explosive growth of the food stamp programme with no end in sight to the monthly increases, CNN said noting that 27 million people were dependent on food stamps in October 2007.
Under the food stamps programme, an eligible individual gets $200 a month in food stamps - in the form of a debit card that can be used at supermarkets and stores to buy authorised food.
A two-person household gets $367 a month. A three-person household gets $526 a month. And a four-person household gets $668 a month.
Source: IANS
Concerns over the weak U.S. recovery and Europe's inability to tame its spreading debt crisis have turned an intense spotlight on the monthly non-farm payrolls report.
"The report is going to be very critical. One of the things that has been the largest headwind to economic growth has been the high unemployment rate," said Jason Ware, a senior research analyst at Albion Financial Group in Salt Lake City, Utah.
U.S. stocks on Thursday suffered their worst sell-off in two years. European stocks slumped to a level not seen since after the financial crisis in mid-2009.
Until recently, most observers believed the American economy was in a slow recovery, albeit one with very disappointing job growth. The official figures on gross domestic product showed the United States economy grew to a record size in the final three months of 2010, having erased the loss of 4.1 percent in G.D.P. from top to bottom.
With unemployment as high as 20% in may parts of the country, and even higher in some parts, accounting for those who have given up or stopped being reported as unemployed, the numbers of unemployed are becoming a staggering number in the millions of people without jobs.
05/08/2011
Staff strike hits banking industry
Chennai/ New Delhi: A majority of banking transactions across India were hit on Friday as some one million staff struck work to protest proposals to divest government stake in state-run institutions, apart from demanding a host of welfare schemes.
"Nearly one million bank employees in state run, private sector as well as foreign banks have struck work today (Friday). The nationwide response for the strike call is good," the convener of the United Forum of Bank Unions, C.H. Venkatachalam, told IANS in Chennai.
"Cheque clearing operations have also been impacted," said the senior office bearer of the forum, which is an umbrella body representing nine unions in the banking industry, but admitted that some private banks were functioning.
"ICICI Bank and HDFC Bank are functioning. We do not have a presence in them," he added. "We find that the government's equity capital in public sector banks is being diluted and reduced and consequently the private capital in our public sector banks is increasing," said Harvinder Singh of the All India Bank Officers' Confederation.
"We demand that public sector banks should not be privatised and government's equity capital in our banks should not be reduced. Do not avail World Bank loan to capitalise public sector banks."
Other demands include no merger of state-run banks, no outsourcing of permanent banking jobs to private sector, resumption of recruitment in right earnest, give jobs to family members on compassionate grounds and frame guidelines for housing, car and other loans. The union officials said they will meet Aug 10 in Bangalore to decide on the next course of action.
Source: IANS
10 signs the U.S. double-dip recession has begun
Monday, August 1, 2011 · 2:21 pmLast week's "news on GDP shows the double dip has arrived – an expansion of only 1.3% and consumer spending up .1% in the second quarter. Astonishingly low by any account.. The debt ceiling trouble and lack of a longer term resolution to the deficit will make it worse," Douglas A. McIntyre writes for 24/7 Wall St.
"The US has entered a second recession. It may not be as bad as the first. Economists say that the Great Recession began in December 2007 and lasted until July 2009," McIntyre writes. "That may be the way that the economy was seen through the eyes of experts, but many Americans do not believe that the 2008-2009 downturn ever ended. A Gallup poll released in April found that 29% of those queried thought the economy was in a 'depression' and 26% said that the original recession had persisted into 2011."
McIntyre writes, "Perhaps the most powerful argument that the recession never ended or that a new one has begun is the persistence of unemployment. Fourteen million people are out of work. A third of those have been jobless for more than a year. May employment data showed the jobless rate rose unexpectedly and that the economy added only 58,000 jobs. Experts believe that the unemployment rate will not improve significantly until the monthly gain in jobs is consistently 300,000 jobs or more. And, at that rate the gains would have to go one for more than two years to bring the economy back to what is traditionally considered a reasonable unemployment figure."
"There are several signs that a recession is firmly in place again and that the downturn could last for several quarters," McIntyre writes. "Most are already easy for the average American to see."
10 signs the U.S. double-dip recession has begun:
1. Inflation: The consumer's ability to buy even the most basic clothing has been undermined
2. Investments have begun to yield less: The DJIA is up only 1% during the last three months and the S&P 500 is down slightly
3. The auto industry: May sales stalled. GM's revenue dropped by 1% compared to May of 2010. Ford's sales were down about as much
4. Oil prices: Recently, crude has moved back above $100
5. The federal budget: The deficit has caused a call for severe austerity measures which have already become part of the economics policies of countries from Greece to the UK to Japan. Job cuts in the U.S. will not be restricted to the federal level
6. China Economy Slows: US exports to China are key to the health of many American businesses
7. Unemployment: Unemployment creates two immediate problems. People without jobs drastically curtail their spending, which will ultimately affect GDP growth. The second is the need for tens of billions of dollars every year in government aid to keep the unemployed from becoming destitute.
8. Debt Ceiling: The United States debt ceiling,currently at $14.294 trillion, will probably be raised before the government has to cut back essential services on August 2
9. Access To Credit: The lack of access to credit has hurt the economic activity or both individuals and small businesses
10. Housing: Whatever the effects have been over the last three years, they are getting progressively worse as home values drop to decade lows
Much more in the full article here.
[Thanks to MacDailyNews readers too numerous to mention individually for the heads up.]
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http://macdailynews.com/2011/08/01/10-signs-the-u-s-double-dip-recession-has-begun/
By some measures, the world economy is in better shape to withstand shocks than it was in the aftermath of the failure of investment bank Lehman Brothers nearly three years ago. Corporate earnings are robust, banks have thicker capital cushions, big emerging markets are still expanding strongly and there has been no repeat of the global liquidity squeeze that sent the dollar soaring in late 2008.Indeed, after this week's 8.5 percent slump in global equities , a rebound might not be far off. Wall Street initially rose on Friday after the U.S. economy created 117,000 jobs last month, more than expected, only to slide back into the red. Any relief is likely to be short-lived until politicians get ahead of the markets and show they are tackling the root cause of the malaise -- excessive sovereign debt.
Sensex plunges: Markets crashed due to external reasons, nothing domestic, says FM
Finance Minister Pranab Mukherjee today said the plunge in the stock markets is purely due to external factors, like concerns over the US recovery and Euro Zone debt crisis, and hoped the volatility is temporary and it would recover soon.
"This is nothing domestic. It is substantially due to external factors," Mukherjee told reporters here.
The stock benchmark Sensex had crashed by over 700 points to slip below 17,000-point level for the first time since May last year. However, as the day progressed it made some recovery and the sensex closed 387 points lower.
"This is mainly because of the fact that some projection has been made about poor recovery of US. This has affected the market sentiment. Current volatility is temporary. Hope that there will be a recovery shortly", the minister said.
Mukherjee cited two-main reason for fall in stocks world over.
"Asian stocks are tumbling today in the light of sharp sell off in the world markets due to poor economic indicators in the US and fears of sovereign debt default contagion in Euro Zone spreading to other European countries," he said.
"Therefore, it has its downfall in the Indian market," the minister added.
The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip into recession.
Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
India will have to learn to live with volatility: RBI
GREATER NOIDA (U.P): With the stock markets plunging by over 700 points on overseas cues, the Reserve Bank today said India will have to learn to live with volatility in the global economy.
"Markets go up and down because of various factors. We don't go into this. Situation is becoming more complex and volatile by the day. So you have to live with that," RBI Deputy Governor K C Chakrabarty told reporters on the sidelines of a function organised by JRE Group of Institutes here.
The stock benchmark BSE Sensex had crashed by over 700 points to slip below 17,000-point level for the first time since June 2010 though it recovered later.
The sharp plunge on Indian bourses followed an overnight meltdown in the US market amid concerns that the American economy might slip into recession.
Negative trends in Asian and European markets further added to the selling pressure on Indian bourses.
Asked if RBI is looking at any measures in wake of the crash, the Deputy Governor said the situation requires an analysis.
"We don't take day to day market reaction. May be after 45-days the RBI Governor will articulate about the policy. It is a matter of worry if something is happening. It requires detailed analysis," he said.
On reports of China diversifying its assets from the US treasury, Chakrabarty said "diversification is always there. People who have lend to the US cannot divert so easily. It is in the entire world interest that US economy should survive".
But the Unipolar Super Power continues to flex its Military Scientific Muscles as NASA set to launch solar-powered spacecraft to planet Jupiter! What a Joke!However,NASA is on the verge of launching a new solar-powered spacecraft all the way to Jupiter.
The robotic explorer, named Juno, is atop an unmanned rocket at Cape Canaveral, Florida. Liftoff is scheduled for 11:34 a.m. (1534 GMT) on Friday.
It will take Juno five years to reach Jupiter, the largest planet in the solar system. The spacecraft will be powered by three huge solar panels. It will be the farthest any solar-powered craft has ever traveled. Previous Jupiter probes have relied on nuclear energy.
Jupiter is believed to be the oldest planet in the solar system. Astronomers hope to figure out the recipe for making planets, by uncovering the ingredients of this gas giant. Juno will spend at least one year circling Jupiter's poles.
World stock markets fell for the eighth straight session on Friday to the lowest since late 2010, with more losses feared if policymakers do not come to the rescue soon to stabilise the euro zone's debt crisis and prevent the US economy from sliding back into recession.
After panic overnight triggered the worst sell-off on Wall Street since the global financial crisis, investors in Asia slashed positions in equities and commodities and scrambled for the safety of cash and government bonds.
In India, Investors can breathe sigh of relief as benchmarks pulled back from day's lows and closed above crucial support levels. The market today witnessed the sharpest one-day fall in a year, on the back of selling by institutional funds, after concerns of double dip recession in the US and financial crisis in Europe rattled global equities.
Indices opened with a gap-down reacting sharply to the carnage on the Wall Street as investors fretted over mounting fears of stalled economy. Investors await U.S. jobs data for indication to ascertain whether the US economy is slipping into a recession. The Federal Reserve meet early next week will also be keenly watched as well.
"The immediate trigger for the markets could be the Fed meeting on Tuesday. It will be watched very carefully to get any message on what does the Federal Reserve thinks about further stimulus. Markets are expecting some comments about further stimulus looking at the recent spate of weak economic data from that country. In case there is an indication of a further stimulus from the Fed, it could be taken positively by the markets globally.
We believe that, it could be a short term positive for the markets but, from a longer term perspective, it will be negative from the US economy's perspective. For India also, it will be negative in the long term because commodity prices may once again shoot up," said Dipen Shah, Senior Vice President (Private Client Group Research), Kotak Securities.
According to analysts, the Indian economy is in better shape and today's melt-down was just a panic selling. The India GDP is likely to grow over 8 per cent and easing prices of commodities like crude oil & metals is expected to bring inflation under some control. The RBI may also go slow in hiking interest rates from here onwards.
"RBI should take a pause in hiking policy rates. If RBI needs to hike rates then it should be by 25 bps," said,Deepak Parekh, Chairman, HDFC in an interview to ET Now.
However, in the short-term, the Indian market will take cues from the US and Europe.
"In the near term, we would be very much coupled and therefore would follow the markets in the west. If we extend our horizon a bit longer, we should be okay and are likely to outperform.
Market outlook by experts on fear of recession in US & its impact on Indian markets
ET Bureau & Agencies
A scary drop in stocks and commodities threatens to squeeze life out of an already faltering US economy, with deal-making, investment in plants and equipment, and capital raising at risk of slowing down or freezing up.
Wall Street suffered its worst sell-off since early 2009 when the financial crisis was still taking a big toll, while crude oil declined as much as 6 per cent. The S&P 500 has now declined 10.7 per cent in the past 10 trading days.
Behind the panicky slide are fears the United States is staring at another recession following a series of ugly economic figures in the past week, and concerns Europe's sovereign debt crisis is worsening as it spreads to Italy and threatens the existence of the euro zone in its current form. Indian markets continued to reel under pressure as fears of double dip recession in the US and financial crisis in Europe gripped global equities. Investors now await US jobs data for confirmation whether the US economy is slipping into recession.
Experts are of the view that investors should start nibbling at selective stocks at lower levels and the market may witness pull-back rally in the next few sessions.
Here is what global market analysts have to say about the possibilty of a double dip US recession and its impact on the Indian markets:
http://economictimes.indiatimes.com/quickiearticleshow/9492387.cms
India gold futures extended gains for a fourth session on Friday to hit a new peak following a rally in overseas markets and a weaker rupee, which traded at its lowest level in five weeks, pushing physical traders to the sidelines ahead of a slew of festivals starting later next week.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) struck a record of Rs 24,300 per 10 grams, before trading 0.75 per cent higher at Rs 24,247.
Overseas gold edged up more than half a per cent as investors used bullion to shelter from the storm engulfing financial markets on concerns that the United States may be facing another recession and Europe's debt crisis is spreading to some of its largest economies.
The Indian rupee slumped to stay around a 5-week low as local shares tumbled, tailing a global equity sell-off, stoking fears of foreign fund outflows on renewed risk aversion.
The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.
Retail gold demand is expected to gain pace in August, when the festival and wedding seasons start in the world's biggest consumer of bullion.
"I don't think at this level demand will come in. It looks like the whole world is just trusting gold and nothing else. It is diffcult for people to digest new highs," said Pinakin Vyas, assistant vice-president with IndusInd Bank in Mumbai.
BSE Sensex: Stock crash erodes over Rs 1.3 lakh crore from investor wealth
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BSE Sensex plunges: Volatility index up 30 per cent after panic sell-off
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Expert views: Fear of recession in US & its impact on Indian mkts
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Sensex plunges: Markets crashed due to external reasons, nothing domestic, says FM
BSE
791.65
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Vol:1197655 shares traded
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792.00
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Vol:5994031 shares traded
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TCS, Infosys, Wipro plunge 2-4% on recession fears in US, Europe
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Investors dump interest rate, export-sensitive stocks amid US recession fears
MUMBAI: The investors were left poorer by over Rs 1.33 lakh crore after today's stock market crash, even as the market managed to recover nearly half of the losses suffered earlier during the day.
The plunge in investors' wealth, which is notional in nature and is measured in terms of cumulative value of all listed stocks, was more than Rs 2.5 lakh crore at one point of time when the benchmark Sensex had plunged over 700 points to below the 17,000-point level.
However, the markets managed to recover nearly half of the losses and some buying at lower levels in afternoon trade helped the Sensex close 387.31 points down at Rs 17,305.87.
Still, at the end of the day, the total investors' wealth stood at Rs 6,349,524.09 crore -- down from Rs 6,482,649.67 at the end of yesterday's market closing, as per the BSE data.
The cumulative losses for investors over the past four trading sessions is estimated at about Rs 4 lakh crore, as the Sensex fell by about 1,000 points in this period.
In today's trade, only three out of 30 Sensex stocks managed to register gains. Together, the market value of all the 30 Sensex companies fell by more than Rs 56,000 crore.
Some of the biggest losses were seen in blue-chips like TCS, Reliance Industries, Infosys, NTPC, ICICI Bank and Bharti Airtel.
While TCS lost more than Rs 7,800 crore, RIL and Infosys lost about Rs 6,800 crore each. While NTPClost over Rs 4,000 crore, BHEL saw its market value dipping by about Rs 3,500 crore and companies likeBharti Airtel and ICICI Bank lost about Rs 3,000 crore each.
However, ONGC added about Rs 2,500 crore to its market value, while modest gains of about Rs 200 crore was seen by Cipla and Hindalco each.
http://economictimes.indiatimes.com/markets/stocks/market-news/bse-sensex-stock-crash-erodes-over-rs-13-lakh-crore-from-investor-wealth/articleshow/9494872.cms
5 AUG, 2011, 10.09AM IST, NEW YORK TIMES
Double dip recession might be happening in US
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Possibility of double-dip in US, EU: UBS
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BSE Sensex: Stock crash erodes over Rs 1.3 lakh crore from investor wealth
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TCS, Infosys, Wipro plunge 2-4% on recession fears in US, Europe
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- Inflation is the most likely way out of rising OECD debt problem
- US manufacturing growth hits lowest level in 2 years
- US economy slowed sharply in first half of year: US Commerce Department
- US debt deal or not, weak economy likely to suffer
- Bernanke warns spending cuts could derail recovery
It has been three decades since the United States suffered a recession that followed on the heels of the previous one. But it could be happening again. The unrelenting negative economic news of the past two weeks has painted a picture of a US economy that fell further and recovered less than we had thought.
When what may eventually be known as Great Recession I hit the country, there was general political agreement that it was incumbent on the government to fight back by stimulating the economy. It did, and the recession ended.
But Great Recession II, if that is what we are entering, has provoked a completely different response. Now the politicians are squabbling over how much to cut spending. After months of wrangling, they passed a bill aimed at forcing more reductions in spending over the next decade.
If this is the beginning of a double dip, it will have two significant things in common with the dual recessions of 1980 and 1981-82.
In each case the first recession was caused in large part by a sudden withdrawal of credit from the economy. The recovery came when credit conditions recovered.
And in each case the second recession began at a time when the usual government policies to fight economic weakness were deemed unavailable. Then, the need to fight inflation ruled out an easier monetary policy. Now, the perceived need to reduce government spending rules out a more accommodating fiscal policy.
The US economy fell into what was at first a fairly mild recession at the end of 2007. But the downturn turned into a worldwide plunge after the failure of Lehman Brothers in September 2008 led to the vanishing of credit for nearly all borrowers not deemed super-safe. Banks in the United States and other countries needed bailouts to survive.
The unavailability of credit caused a decline in world trade volumes of a magnitude not seen since the Great Depression, and nearly every economy went into recession.
But it turned out that businesses overreacted. While sales to customers fell, they did not decline as much as production did.
That set the stage for an economic rebound that began in mid-2009, with the National Bureau of Economic Research, the arbiter of such things, determining that the recession ended in June of that year. Manufacturers around the world reported rapidly rising orders.
Until recently, most observers believed the US economy was in a slow recovery, albeit one with very disappointing job growth. The official figures on gross domestic product showed the US economy grew to a record size in the final three months of 2010, having erased the loss of 4.1 per cent in GDP from top to bottom.
Then last week the government announced its annual revision to the numbers for the past several years. New government surveys indicated Americans had spent less than previously estimated in 2009 and 2010 on a wide range of things, including food, clothing and computers. Tax returns showed Americans even cut back on gambling. The recession now appears to have been deeper - a top-to-bottom fall of 5.1 per cent - and the recovery even less impressive. The economy is still smaller than it was in 2007.
More stories from this edition of US Double Dip Recession
- Recession: US economy has never been on the road to recovery, says Paul Krugman
- Recession: US, EU, Japan must cooperate to avoid 'pessimism', says Tokyo
- Recession: China to support euro and global economy says Finance Minister Yang Jiechi
- Recession: China, Japan urge global talks on debt crises
http://economictimes.indiatimes.com/news/international-business/double-dip-recession-might-be-happening-in-us/articleshow/9489825.cms
05/08/2011
Markets sink on global meltdown
Updated at market close: Markets shaved off 2% today following a rout in equities across the globe due to risk aversion for equities on concerns of global economic health.
Sensex nose-dived 364 points in opening trades and continued to remain under pressure due to heavy selling in index heavyweights-Infosys, Reliance Industries and ICICI Bank. The BSE benchmark index touched a low of 16,990 in noon trades. Recovery in ONGC and Larsen & Tourbo in late trades helped the index trim losses. The Sensex finally ended at 17,306, down 387 points the Nifty closed at 5,211, down 120 points.Both the benchmark indices were down 5% for the week.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
US markets clocked their biggest percentage drop since 2008 on global growth concerns. Markets in Asia were also hammered badly, Hang Seng Index declined 4.3%, the Shanghai Composite index plunged almost 2% and Japan's Nikkei Stock Average also tumbled 3.7%.
While the selling in commodities might help the Indian markets, by mitigating concerns on inflation and interest rates front, a sustained weakness in the global economy might impact the exports. Dipen Shah, Senior Vice President (Private Client Group Research) from Kotak Securities said, "the overall GDP growth could also moderate in case exports are hit badly. However, exports form only about 18% - 20% of the overall GDP and hence, the impact, if any, should be muted."
Markets recover partially, Sensex down 450 pts
Updated at 3.30 pm: Markets trimmed losses in late noon trades, owing to buying in ONGC. A marginal recover in European markets also played its part. The Sensex, after opening at 17,350 touched a low of 16,991. The index has recovered somewhat and is now at 17,248 - down 444 points. Nifty is down 137 points at 5,194. The NSE benchmark index had touched a 52-week low of 5,120.
At 01.40pm: Markets recovered partially, but continued to trade lower on back of losses in index heavyweights - Infosys, RIL and ICICI Bank. Selling pressure in IT and realty stocks also weighed. The BSE Sensex was at 17,241down 450 points and the Nifty slipped to 5,191, down 140 points.
At 01.15pm: The markets continued witnessing a rapid sell-off in the noon trades with both the benchmark indices at fresh calendar year lows.
The BSE Sensex was at 17,124, down 569 points and the Nifty plunged to 5,149, down 183 points. The Sensex witnessed the worst opening in nearly two years - at 17,350 - down over 340 points. The index slipped below the 17,000-mark to touch a low of 16,991 on persistent selling pressure in index heavyweights mainly IT stocks.
The BSE IT index has slumped 5% to 5,390 after an overnight slide in US markets. US is the biggest market for services of Indian IT firms. Infosys and TCS, alone, account for around 25% of the total losses in the noon trades, with the former accounting for a 100-point cut on the Sensex, and the latter another 50-odd points. Realty, consumer durables and TECk dropped around 5% each.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered very badly on worries of US economic health. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor's 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%. Asian markets also tumbled with the Hang Seng down 5%, with Nikkei, Straits Times and Seoul Composite following close behind.
Worries of the hike in interest rates slowing down corporate earnings growth further also weighed on investor sentiments. Interest rate and export sensitive, blue-chip stocks have tumbled this morning. 11 out of the Nifty 50 stocks have touched a new 52-week low, including metal bigweights - Sail, Hindalco and Jindal Steel.
Reliance Industries, has slipped nearly 4% to Rs 781 after outputs from the KG-D6 fields fell 27% to around 47 million standard cubic meters per day in June.
Cipla was trading on a flat note, down 0.4% at Rs 305, ahead of its results today.
The BSE market breadth continued to be remarkably negative. Out of 2,809 stocks traded, 2,517 stocks have declined while 246 have advanced.
At 12.35: Relentless selling has taken markets to fresh calendar year lows. The Sensex is now down over 600 points at 17,080, and the Nifty has plunged 184 points to 5,147.
At 11.30 am: The markets continue to languish near the lows on extremely negative cues from the global peers. The Sensex witnessed the worst opening in nearly two years - at 17,350 - down over 340 points. The index moved lower on selling pressure in metal and IT stocks and touched a low of 17,210. The index is now down 457 points (2.5%) at 17,236. The Nifty has plunged 142 points at 5,189.
Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered very badly on worries of US economic health. Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor's 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%. Asian markets also tumbled with the Hang Seng down 5%, with Nikkei, Straits Times and Seoul Composite following close behind.
Worries of the hike in interest rates slowing down corporate earnings growth further also weighed on investor sentiments. Interest rate and export sensitive, blue-chip stocks have tumbled this morning. 11 out of the Nifty 50 stocks have touched a new 52-week low, including metal bigweights - Sail, Hindalco and Jindal Steel.
India's most valuable stock, in terms of market weightage, Reliance, slipped has slipped nearly 3% to Rs 790 after outputs from the KG-D6 fields fell 27% to around 47 million standard cubic meters per day in June.
BSE IT index has slumped 4.5% to 5,426 after the slide in US markets. US is the biggest market for services of Indian IT firms. Realty, auto and bankex dropped around 3% each.
Cipla was trading on a flat note ahead of its results today. ONGC, on the other hand, gained 0.7% to Rs 275.
The BSE market breadth continued to be extremely negative. Out of 2,653 stocks traded, 2,280 stocks have declined while 317 have advanced.
At 11am: Markets nose-dived in opening trades following sell-off in equities across the globe over sovereign crisis and global growth concerns. The Nifty slipped 134 points, to 5,197, and the BSE Benchmark index declined 343
points, at 17,350 at the opening bell. This was the worst market opening in nearly last two years. On November 6, 2008, the index had opened with a negative gap of 364 points.
The Sensex touched a low of 17,220, and is now down 415 points at 17,277. The NSE Nifty has shed 130 points at 5,201. Recession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. The ECB also announced longer term funding for banks facing cash crunch.
Overnight, Wall Street indices were battered badly on worries of US economic health. The Dow Jones Industrial Average lost 4.3%, the biggest percentage drop since 2008. Even the Standard & Poor's 500 Index declined 4.8% and the Nasdaq Composite Index shed 5.1%. In Asia, the Hang Seng Index declined 4.2%, while the Shanghai Composite index plunged almost 2% and Japan's Nikkei Stock Average also tumbled 3.4%.
Crude was heading for biggest weekly drop in three months on anticipation that growth may slow down. Brent Crude slipped 3% and was hovering around $107/ barrel. Relatively saver havens like currencies such as Yen and Swiss franc, and bonds were temporarily attractive investor interest.
Analysts said that after a deep cut in opening trades markets may continue to remain under pressure until global conditions improve. India Infoline Financial Services in the morning note said, "A drop in crude is good for the Indian markets. All eyes will now be on the US monthly jobs report given the mounting concern over the health of the US economy."
Index heavyweight made deep cuts in opening trades. ICICI Bank, Infosys and L&T plummeted over 3% in the morning session. Reliance Industries slipped below Rs 800 level, down 2% to Rs 759. Only one component on the Sensex was trading in the green, ONGC was up over 0.5%. On the sectoral front metal stocks were the worst hit following the rout in commodities globally over bleak growth outlook. Sterlite Industries, Hindalco were down almost 4% each, and Sesa Goa declined 2%. All three stocks hit 52 week low in opening trades.
Also BSE IT index slipped over 3% on concerns that outsourcing demand may get affected if clients in US and Europe resort to spending cuts. Infosys and TCS slipped over 3% each, and Wipro plunged 2.5%.
From the broader markets, the BSE midcap and the smallcap indices were down over 2.5% each. Market breadth was extremely negative, 1664 stocks declined for 190 stocks which advanced.
Source: Business Standard
Markets plunge to new low in USA, Oz
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Some Asian stock markets fell by more than 5 per cent. The Euro STOXX 50 futures stock markets were down 3 per cent while US stock futures > eased 0.2 per cent, with investors worldwide waiting for US employment figures due later in the day that could trigger further selling if the jobs picture disappoints.
"Equity valuations are already pretty low but sentiment keeps deteriorating, so why come in and buy now?" said Shane Oliver, head of investment strategy at Sydney-based AMP Capital, which has more than $100 billion in assets under management.
Investors are looking for stronger US and European policy responses, but it may be a while until they see another dose of quantitative easing from the Federal Reserve or a stop-gap measure in Europe, Oliver said, adding that his firm had spent the past month neutralising its overweight positions.
Complicating matters was that Japan and Switzerland have intervened this week to knock down their currencies, which were considered the safest in the developed world. That has caused some safety-seeking investors to think twice about stashing money there when financial market volatility is spiking.
So far, retail investors were participating in the heavy selling but institutional equity investors in Asia were not completely liquidating their positions, instead continuing to cut riskier bets and protect their portfolios.
The benchmark MSCI all-country world stocks index fell 1 per cent to the lowest since Dec. 1, 2010. The index has slumped nearly 11 per cent since late July.
REALITY CHECK
Japan's Nikkei share average fell 3.7 per cent to the lowest since the week following the country's massive earthquake and tsunami in March.
Asian stock markets tumbled Friday amid fears the US may be heading back into recession and Europe's debt crisis is worsening. The sell-off follows the biggest one-day points decline on Wall Street since the 2008 financial crisis.
Oil extended sharp losses to fall below $86 a barrel amid expectations a slowing global economy will undermine demand for crude.
Japan's Nikkei 225 stock average slid 3.7 per cent to 9,303.95 and Hong Kong's Hang Seng dived 4.8 per cent to 20,844.59. China's Shanghai Composite Index lost 1.9 per cent to 2,633.52.
``Losses today have been indiscriminate,'' said IG Markets strategist Ben Potter in a report. ``The big question on everyone's mind is what will happen across European and US markets tonight and will there be any form of emergency policy response?''
The Dow closed Thursday down 512.76 points, at 11,383.68. It was the steepest point decline since Dec. 1, 2008.
Thursday's decline was the ninth-worst by points for the Dow. In per centage terms, the decline of 4.3 per cent does not rank among the worst. On Black Monday in 1987, for example, the Dow fell 22 per cent.
Investors fretted over the US economic recovery ahead of Friday's release of crucial jobs figures for July, which often set the tone in markets for a week or two.
Many were also rattled by the lack of agreement in Europe about debt and how to stabilize the euro, said Tom Kaan of Louis Capital Markets in Hong Kong. He said they were watching to see if the US Federal Reserve launches a new stimulus effort.
``It's a general fear that is clouding the markets at the moment,'' Kaan said.
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Monsters and Critics.com - 7 hours agoNew Delhi - India's benchmark Sensex index fell by over 2 per cent on Friday following a sell-off by funds and investors over concerns of a recession in the US economy. The 30-share index of the Bombay Stock Exchange registered its sharpest single-day ...
Sensex joins global sell-off, ends 2% lower
mydigitalfc.com - Prasanna Deshpande - 2 hours agoAfter selling shares worth Rs 1300 crore in the last three trading sessions, FIIs sold equities worth Rs 1789 crore in today's trade, according to provisional data posted on BSE website. dip in theUS. Coupled with the ailing health of peripheral Euro ...
Indian equities tumble on US economy fears
Monsters and Critics.com - 11 hours agoFears of another dip to the recession in the United States have gripped traders, causing significant price falls on Wall Street and in bourses around the world. The benchmark Japanese Nikkei, the Chinese Shanghai Composite index and Hong Kong's Hang ...
Gap-down Opening Seen For Indian Equities
RTT News - 15 hours agoOn Wall Street, stocks crashed overnight to their worst levels of the year amid continued worries about the economic outlook, with fears about the possibility of a double-dip recession creeping into the markets. The Dow plunged 4.3 percent, ...
Indian Market Bounces Back
RTT News - Aug 3, 2011The benchmark indexes Sensex and the Nifty slid about a percent each on Wednesday, extending recent losses, as downbeat US consumer spending data added to worries that the world's largest economy might be slipping into a double-dip recession. ...
Sensex snaps 500 points; Analysts say 'good time to buy'
Economic Times - 11 hours agoGlobal markets expect a double dip recession in United States and Europe as developed economies are expected to slow down going forward. Going forward the developed economies will show some sort of slowdown but that will be good factor for economies ...
Sensex, Nifty recover from 13-month lows; breadth weak
India Infoline.com - 7 hours agoIndian shares staged a strong intraday recovery after fears of a possible US double-dip recession and worsening European sovereign-debt woes pushed the Sensex and the 50-unit S&P CNX Nifty to their lowest level in more than 13 months. ...
Market trims losses; breadth remains weak
India Infoline.com - 9 hours agoIndian shares slumped today, 5 August 2011, in a global rout in equities triggered by fears of a possible US double-dip recession and worsening European sovereign-debt woes. The barometer index BSE Sensex today, 5 August 2011, hit its lowest level in ...
Sensex tanks 387 points on recession fears in US,
The Hindu - 38 minutes ago
The Bombay Stock Exchange sensitive index, Sensex, plunged by 387.31 points or 2.19 per cent, a nearly 14-month low, fearing fresh recession led by world's largest economy the US and Europe. During intra-day trading, the Sensex lost over 702 points to ...
Sensex falls 387 pts on US worries Nifty holds 5200
Moneycontrol.com - 7 hours ago
"All the factors, which fundamentally would affect our earnings, are smoothening down with this particular crisis overseas, except of course, recession worldwide leads to lower exports," he said. Technology stocks saw the major fall due to US recession ...
Sell-off slows down; Nifty gets back above 5200
Moneycontrol.com - 8 hours ago
Carnage in global markets on fears of recession in the US sent the benchmark Nifty to its 52-week low. The 30-share BSE Sensex was trading at 17150, down 542 points and the 50-share NSE Nifty lost 165 points to 5167. The broader indices were taking ...
Recovery too mild to put balm on carnage Nifty down 150pts
Moneycontrol.com - 10 hours ago
TCS and Infosys lost more than 5.5% on fears of US recession. Wipro lost nearly 4%. The 30-share BSE Sensex lost 572 points to 17120 and the 50-share NSE Nifty fell 172 points to 5159 on the back of mayhem in global markets. All sectoral indices were ...
Markets recover partially, Sensex down 450 pts
Business Standard - 10 hours agoRecession jitters inflated investors anxiety after series of weak economic data raised global growth concerns. On Thursday the European Central Banks held policy rates at 1.5% and resumed the purchase of government bonds after a hiatus of four months. ...
Sensex tanks 2.4% on US recession fears
Economic Times - 13 hours agoMUMBAI: Indian markets were witnessing a sharp selling pressure as fears that the US economy is slipping back in recession spooked sentiments across global equities. All the sectoral indices were in the red with metals, IT and realty stocks beaten down ...
Every fifth active stock is hovering at a 52-week low
Daily News & Analysis - Nitin Shrivastava - 14 hours agoNearly one in every five stocks in the BSE 500 index has hit fresh yearly lows in the last four trading sessions as the markets continued their downward trend on global concerns and signs of a slowdown ...
BSE Sensex joins Asia rout; IT, financials suffer
Economic Times - 9 hours agoAsian markets tumbled on Friday after the overnight selloff on Wall Street, on fears the United States is staring at another recession and that Europe's sovereign debt crisis is swallowing two of its largest economies. By 0453 GMT, the MSCI's measure ...
Sensex slumps on global bloodbath...Nifty near 5200
India Infoline.com - 7 hours agoIt was a sea of red across world markets amid fear of a sharp slowdown in the US and deterioration of the eurozone credit crisis. The Dow Jones, S&P 500 and the Nasdaq index fell nearly 5% overnight. Asian markets fell ~2-4%. ...
Elsewhere in Asia, South Korea's Kospi shed 3.6 per cent to 1,945.72 and Taiwan's benchmark skidded 5.1 per cent to 7,891.66. Australia's benchmark dropped 4.1 per cent to 4,101.20 and India's Sensex shed 2.2 per cent to 17,312.04.
Investors, already fidgety after protracted political bargaining to raise the US debt limit and worries that Italy and Spain are getting deeply embroiled in Europe's debt crisis, searched for assets considered safer such as gold.
Investors fled US stocks and dumped commodities on Thursday, rushing to the safety of government bonds on growing fears the global economy was weakening.
EQUITIES
The Standard & Poor's 500 stock index fell 60.27 points, or 4.78 percent, to 1,200.07 its lowest level since Dec. 1, 2010. The S&P 500 has fallen in 8 out of the last 9 sessions.
Thursday's 4.78 percent decline in the S&P 500 is the biggest one day drop since the 4.912 percent plunge on Feb. 10, 2009.
The S&P's 10.7 percent drop over the last 10 days is the worst 10-day period for the index since the 10 days ended March 6, 2009 when it was off 11.3 pct in that period.
The Dow Jones industrial average plunged 512.76 points, or 4.31 percent, to 11,383.68, its lowest close since Dec. 10, 2010. The Dow industrials have fallen 9 out of the last 10 sessions.
The Nasdaq Composite Index fell 136.68 points, or 5.08 percent, to 2,556.39, its lowest close since Dec. 2, 2010.
Trading volume in the US equity markets reached 13.8 billion shares, the busiest day since 14.48 billion shares changed hands in composite trading on June 25, 2010.
The CBOE Volatility index, Wall Street's "fear index," rose 35.4 percent, its largest daily percentage gain since Feb. 27, 2007.
FIXED INCOME
Biggest 6-day drop in long-dated yields, for both the US benchmark 10-year Treasury and the 30-year Treasury bond, since December 2008, at the height of the financial crisis.
US 2-year Treasury yields hit a record low of 0.26 percent.
US 10-year Treasury yields fell to 2.42 percent, lowest since October 2010.
US 30-year Treasury yields fell to 3.71 percent, the lowest since October 2010.
CURRENCIES
The US dollar, trading on the EBS platform, at one point rose as much as 4 percent against the Japanese yen before seeing gains cut.
The dollar traded up 2.5 percent to 79.03 yen at current prices, the largest one day percentage gain against the Japanese yen since mid-September 2010.
Japanese authorities intervened in the foreign exchange market on Thursday to stop the yen's rise, spending one trillion yen ($12.6 billion) in the process to help protect exporters. This unilateral intervention followed an internationally coordinated currency intervention to weaken the yen by the world's major central banks in March 2011. Japan also intervened in September of last year.
The euro suffered its biggest one day fall against the US dollar since July 11, 2011, dropping 1.5 percent at $1.4110.
The euro fell 1.9 percent at 1.0825 Swiss francs. * The dollar fell 0.5 percent to 0.7670 Swiss francs.
COMMODITIES
The 19-commodity Reuters-Jefferies CRB index, a global benchmark for the asset class, closed down 2.8 percent for its biggest daily decline since May 11, 2011.
Gold prices hit a record high in intraday trade of $1,684.90, but fell to close on Thursday to $1,651.40.
Silver plunged 7 percent to $38.76, its biggest one-day percentage loss since May 11, 2011.
US crude for September delivery settled at $86.63 a barrel, sliding $5.30, or 5.77 percent, the biggest daily percentage loss since May 5, 2011 and the lowest close since Feb. 18, 2011. Losses accelerated after breaking through a key technical support level at the June low of $89.61.
Crude oil trading volume in New York of nearly 914,000 contracts was 52.3 percent above the 30-day average, the highest since June 23, according to Reuters data. In London, volume hit 696,000 contracts, 46.7 percent above the 30-day average, the highest since June 24.
In London, ICE Brent for September delivery settled at $107.25 a barrel, falling $5.98, or 5.28 percent, the biggest one-day percentage loss since June 23's 6.1 percent drop. The settlement was the lowest since the June 27 close at $105.99.
US gasoline for September delivery closed at $2.7372 a gallon, falling 19.41 cents, or 6.62 percent, front-month gasoline's biggest one-day percentage loss since the May 11 7.6 percent fall. It hit the day's low at $2.7280, the lowest since the Feb. 28 intraday low of $2.70.
US gasoline's crack spread -- the profit refiners make per barrel after processing crude into motor fuel -- hit $28.05, the narrowest since July 6's 27.23.
"People have just become spooked by a crass failure of political leadership," said George Magnus, senior economic adviser at UBS in London.
In Magnus's view, the first-half slowdown in U.S. growth -- an important contributor to the current loss of confidence -- was inevitable given how long it will take households to reduce their own debt mountain and rebuild savings.
But he said markets wanted an end to the "political dysfunction" all too evident in the protracted wrangling over the U.S debt ceiling and the euro zone's inadequate response to the debt crisis gripping the periphery of the 17-member group.
"There are economic solutions to economic problems, but no politicians are stepping up to the plate," he said.
| NAME | LAST | CHANGE | % CHANGE | |
|---|---|---|---|---|
| DOW | 11,470.72 | +87.04 | +0.76 | |
| | ||||
| NASDAQ | 2,544.72 | -11.67 | -0.46 | |
| S&P | 1,205.05 | +4.98 | +0.41 | |
| Russell 2000 | 721.17 | -5.63 | -0.77 | |
| 10 Yr Note | 105.00 | -1.22 | -1.15 | |
[BRIEFING.COM] Range bound trade has kept the Nasdaq Composite mired near the neutral line, but component Blackbaud (BLKB 27.31, +3.75) has surged to a 16% gain in response to its latest quarterly report. That makes the stock one of today's top performers by percent gained. Fellow Nasdaq component Brocade (BRCD 3.50, -1.39) is at the opposite end of the spectrum; the stock's near 30% slump comes after the company cut its earnings forecast. Nasdaq +2.27 at ... More
Debt deal could trigger recession - 1 - US economy - MSN Money
A double dip recession? We won't be out of this DEPRESSION until fuel prices come back down to $1 gal, which will bring all the other prices DOWN and allow the ...
money.msn.com/investment-advice/debt-deal-could-trigger-recession-mirhaydari.aspx?GT1=...
Dow plunges 513 points; 2011 gains are wiped out - 1 - Market ...
Its funny how they are calling this a double dip recession instead of a depression. There has not been a recovery since 2001. This is a full blown depression that could ...
money.msn.com/investing/dow-plummets-market-dispatches.aspx?gt1=33002&scptb=f
Gold spikes as recession fears spread- MSN Money
Dange is buying gold on any kind of price dip. "In these overbought situations ... on Wall Street; but where I live in California, make no mistake, it's a DEPRESSION.
money.msn.com/market-news/post.aspx?post=961533cc-682b-4f2b-97ce-bbb3b3395640>1=...
Have house prices already hit bottom?- MSN Money
This downturn -- the worst since the Great Depression -- has made realists of nearly ... "Expect a triple dip, a quadruple dip, and a quintuple dip" that's rife with ...
money.msn.com/saving-money-tips/post.aspx?post=e24260f2-486e-4a21-8c4c-674f23e7d2a8
Market meltdown nearing end but then what?- MSN Money
... and willingness to deploy creative new monetary policy measures to stave off a double-diprecession -- one that could devolve into a global, synchronized depression given ...
money.msn.com/top-stocks/post.aspx?post=2986d50d-55cf-44fe-8727-78821e3b1233
Obama urges Cabinet to redouble economic efforts: Associated Press ...
... and as communities, from the worst recession we've had since the Great Depression." ... House briefing, "We do not believe that there is a threat of a double-dip ...
money.msn.com/business-news/article.aspx?feed=AP&date=20110803&id=14042267
Modest gain enough for Dow to hit post-crash high - MSN Money
the bernank just wants to get us past the risk of a double dip recession or a deflationary downward spiral that could lead to actual great depression II.
money.msn.com/market-news/post.aspx?post=de5ca54b-c2da-4d5d-a121-6b82340bf4f1
How to fix the black-hole economy - 1 - recession & recovery - MSN ...
There was talk of a double-dip recession. Fear returned to the financial markets. ... soon which with Bernanke's stopping buying US T-bills will cause a Great Depression in ...
money.msn.com/investing/how-to-fix-the-black-hole-economy-mirhaydari.aspx
Dow plunges 513 points; 2011 gains are wiped out ...
If economists confirm that these spending cuts are leading to a double-dip ... lost economic activity, stark predictions that recalled the days of the Great Depression ...
money.msn.com/investing/dow-plummets-market-dispatches.aspx?GT1=33002h
Japanese stocks open sharply higher- MSN Money
... our sputtering economy which could slip backwards into a devastating double-dip ... sound economics as supported by what happened in the after-math of the Great Depression.
money.msn.com/market-news/post.aspx?post=68f31b8f-1a78-4243-bba7-4a75077ddb30
Double Dip Recession? More Like Depression Says Peter Schiff
By Jeff Macke | Breakout – Thu, Aug 4, 2011 8:48 AM EDTPeter Schiff, the CEO of Euro Pacific Capital, isn't one of those guests Nesto and I have to badger for opinions. Ask him a question and the long-time bear will tell you exactly what he thinks with vigor, even when he has an aching throat. Schiff thinks the U.S. is headed not just for a recession but rather a full-blown depression. On the upside, he believes the coming economic situation will look familiar.
"The Depression [in the wake of the financial crisis] was temporarily interrupted by a bunch of stimulus which ultimately weakened the economy further," says Schiff. He adds the government's likely knee-jerk response of stimulating is, "probably going to be the fatal dose, the lethal dose" prior to "a complete economic collapse."
Which is precisely why Schiff wasn't among those expecting a debt deal relief rally last Monday morning. The attention paid to the deal was a "massive victory for propaganda that would have done Goebbels proud" (yes, this Goebbels). Schiff believes the real crisis wasn't the debt ceiling but spending and debt, both of which were effectively worsened by the deal.
"The reckless thing to do was to raise the debt ceiling" he says. Exacerbating matters Schiff thinks the ceiling is going to have to be raised yet again before President Obama leaves office. Not that the chance for DC to spend more freely will help the economy. "The reason we can't grow the economy is because the government is in the way... There's no jobs because there's no recovery."
By way of a cheery goodbye Schiff concludes, "We're on a collision course for disaster. All we can do, all your viewers can do is brace for impact...Buy gold. Buy silver... Get as far away as you can from U.S. currency and the U.S. economy."
The clip itself is must viewing, at least for those not given to panic.
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Gerald Celente: U.S. Double Dip Depression will Lead us into War ...
www.youtube.com/watch?v=-emVKUs7N-I14 min - 10 Aug 2010 -Uploaded by TheAlexJonesChannel
Alex welcomes back to the show Gerald Celente, a trend forecaster, publisher of the Trends Journal, business consultant and author who ... -
Gerald Celente: U.S. Double Dip Depression will Lead us into War ...
www.youtube.com/watch?v=x7mBxqCex1s15 min - 10 Aug 2010 -Uploaded by TheAlexJonesChannel
Alex welcomes back to the show Gerald Celente, a trend forecaster, publisher of the Trends Journal, business consultant and author who ... -
Deflationary Depression in America: The DoubleDip Economic Recession
Deflationary Depression in America: The Double DipEconomic Recession. by Bob Chapman. Global Research, June 8, 2011. International Forecaster ...
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Economic Depression in America: Housing's Double Dip
Economic Depression in America: Housing's Double Dip. by Mike Whitney ...
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Gerald Celente: US Double Dip Depression will Lead us into War ...
cordei.com/.../gerald-celente-us-double-dip-depression-will-lead-us-... - Cached2 Jul 2011 – Alex welcomes back to the show Gerald Celente, a trend forecaster, publisher of the Trends Journal, business consultant and.
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Gerald Celente On the Alex Jones Show: DoubleDip Depression Will ...
Infowars.com. August 10, 2010. The white shoe boys are takingus into the worst depression in history. ...
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Gerald Celente: U.S. Double Dip Depression will Lead us into War ...
www.jdgoldblog.com/gerald-celente-u-s-double-dip-depression-will... - CachedGerald Celente: U.S. Double Dip Depression will Lead us into War – Alex Jones Tv.
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World headed for second recession, or double-dip depression | The ...
15 Nov 2009 – When the Great Depression started after it , it's thought that politicians ... A US double dip would be bad news for the global economy, ...
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The Daily Bell - US Double Dip Depression
www.thedailybell.com/1161/US-Double-Dip-Depression.html- Cached25 Jun 2010 – US Double Dip Depression. Free-Market Thinking. Dominant Social Themes. Power Elite Memes exposed. Ron Paul and Libertarians.
The Group of 20 leading economies and the Group of Seven rich nations impressed investors in late 2008 and 2009 by coordinating interest rate cuts and expanding fiscal policy to cushion the post-Lehman freefall in the global economy.
But now, deficit-spending is the perceived problem, not the solution, in both the United States and the euro zone, while interest rates are already close to zero. With little ammunition left in the armoury, governments are displaying concern but not enough urgency for the likes of impatient investors.
"There is probably no consensus within the G7 on how to address this," said a source in Japan familiar with G7 negotiations. "Each country is too busy with their own problems to talk about cooperation."
Market mayhem leading to weaker growth in the rich world would naturally be negative for emerging economies.
Jun Ma, an economist with Deutsche Bank in Hong Kong, estimated that a downward revision of 1 percentage point to growth in the United States and the European Union would trim Chinese growth by 1 percentage point, too.
So what happens next? In the United States, with budget policy now effectively off limits until after the November 2012 presidential election, some analysts believe the Federal Reserve will eventually embark on a third round of large-scale asset purchases, dubbed quantitative easing (QE), if unemployment remains too high for comfort.
The unemployment rate dipped to 9.1 percent from 9.2 in July, but that was because discouraged job-seekers gave up the hunt for work.
"With fiscal policy close to exhaustion and any remaining scope for flexibility apparently compromised by the recent bipartisan agreement on the debt ceiling, the responsibility for providing any additional support to the U.S. economy rests very much with the Fed," said Russell Jones, an economist with Westpac in Sydney.
In a note to clients, Jones said it was probably too early for the Fed to announce a full programme of QE at its policy-setting meeting next week.
But he said the central bank could reinforce its easy policy stance in the interim by taking steps to anchor long-term interest rates in order to spur investment and spending.
COMMON EURO ZONE BONDS TO COME?
As for the euro zone, heavy selling this week of Spanish and Italian bonds is raising pressure on European leaders to massively expand the bloc's emergency financial rescue fund.
Currently at 440 billion euros, it would need to be doubled or tripled to cover economies as big as Italy and Spain, whose cost of borrowing hit fresh euro lifetime highs on Friday. The two countries' 10-year bonds were yielding about 4 percentage points more than those of Germany, the euro zone benchmark.
Magnus at UBS said that, apart from expanding the fund, the issuance of common euro zone bonds was a minimum requirement if political leaders wanted to end the crisis once and for all.
European Economic and Monetary Affairs Commissioner Olli Rehn said on Friday officials would look at longer-term options, including the idea of euro zone bonds, and would present a report after the summer.
But big powers Germany and France have hitherto opposed such a radical step, arguing that it would sap fiscal discipline and raise their own borrowing costs, alienating voters.
But Philip Whyte, a senior research fellow at the Centre for European Reform in London, said it was illusory to believe that Italy -- the latest target of uneasy investors -- could restore confidence by its own reform commitments alone.
No economic growth targets set for FY12, FY13: MoS for Finance Namo Narain Meena
The government today said it has not set any specific target for the country's economic growth for year 2011-12 and 2012-13.
"No specific annual targets are set by the government for real Gross Domestic Product (GDP) growth," Minister of State for Finance Namo Narain Meena told the Lok Sabha in a written reply.
He was replying to a question on the target set by the government for economic growth for 2011-12 and 2012-13.
Meena said the International Monetary Fund's World Economic Outlook (WEO) has projected India will grow in calendar year 2011 and 2012 by 8.2 per cent and 7.8 per cent, respectively.
"The growth rates for emerging and developing economies and for India, projected by the WEO, for the year 2012 is less than that for 2011. While year-on-year a modest decline is projected, there is no discernible declining trend," he said.
The minister pointed to the government efforts towards accelerating economic growth.
"The government had pursued prudent macroeconomic policies on an ongoing basis with a counter-cyclical focus in recent year, strengthened structural measures to promote growth, develop product as well as financial markets, and increased social spending to provide a stronger foundation to protect the poor," Meena said.
Meena's reply comes a week after the Prime Minister's Economic Advisory Council (PMEAC) projected India will grow by 8.2 per cent in 2011-12.
The Indian economy had expanded by 8.5 per cent last fiscal.
The government in its pre-Budget survey has put its growth projection at 9 per cent (plus or minus 0.25 per cent) for this fiscal.
Besides, the Reserve Bank in it annual monetary policy said the Indian economy would grow by 8 per cent in 2011-12.
The Finance Ministry is going to come out with revised growth projections in September. Senior ministry officials, including chief economic advisor Kaushik Basu, have said that they expect Indian economy to grow by around 8.5 per cent in 2011-12.
5 AUG, 2011, 03.15PM IST, REUTERS
Recession: Global fears, easing prices to impact RBI stance, says Deputy Governor
HYDERABAD: A softening trend in world commodity prices and emergence of global recession concerns could have an impact on the Reserve Bank of India's policy stance, a deputy governor said on Friday."Fears of global recession have just re-emerged. I suspect that when we next meet in September, it will be an issue," Subir Gokarn, who handles monetary policy at the central bank, told reporters on the sidelines of an event in the southern city of Hyderabad.
"So far there have been concerns about the extent of the recovery not being strong. Second recession was not in realm of probability till very recently," he said, referring to fears about the US economy.
His comments followed a massive sell-off across world stock markets on renewed concerns over the global economic health and heavy demand for safe-haven government securities.
The 30-share BSE index tumbled more than 3 per cent on Friday morning to a near 14-month low and the rupee slumped to a 5-week low at 44.8550 per dollar, joining a slide across Asian markets.
The benchmark overnight indexed five-year swap rate slid to a more than 8-month low and the 10-year benchmark federal bond yield fell to a near two-week low of 8.29 per cent.
The Reserve Bank of India (RBI), which raised rates by a steeper-than-expected 50 basis points last week, has been one of the world's most aggressive central banks to fight high inflation by tightening policy.
It has raised rates 11 times since mid-March 2010 and bond traders had been pricing in another increase in September.
Gokarn said the RBI takes into account demand pressures and commodity prices for formulating its policy stance.
"We saw some softening of commodity prices in May-June but that trend did not persist and by the time we started July (policy) process they had stabilised," he said.
"Now, if this is a beginning of softening trend, it will have some impact on our thinking in terms of our stance," he added.
US crude fell below $83 on Friday, heading for its biggest weekly drop since early May. Brent has dropped nearly 11 per cent and US oil by about 12 per cent this week.
Foreign exchange dealers were expecting the RBI to step in and arrest a sharp fall in the rupee, but Gokarn said that an intervention could tighten liquidity in a banking system which is already running a negative cash condition.
"There is no policy position in terms of intervening to prevent movement of rupee. The concern will be with liquidity. We don't want market to be disrupted by constraints of liquidity," Gokarn said.
At a separate event, another deputy governor of the RBI, K.C. Chakrabarty, said while it is not easy to move away from investing in U.S. Treasury, the central bank is attempting to diversify its foreign exchange reserves to prevent any devaluation of its dollar assets.
5 AUG, 2011, 02.52PM IST, ECONOMICTIMES.COM AND AGENCIES
Effect on currencies and commodities markets around the world
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NEW DELHI: Global stock markets tumbled on Friday amid fears the U.S. may be heading back into recession and Europe's debt crisis is worsening. The sell-off follows the biggest one-day points decline on Wall Street since the 2008 financial crisis.
Here's a consolidated snapshot of what's going on in Currencies, commodities and Bonds around the world.
Currencies:
The rupee was near its weakest level in over five weeks in afternoon trades as domestic equities stayed deep in the red, tailing the global shares rout, fuelling concerns of outflows.
The partially convertible rupee was at 44.79/80 per dollar, after touching 44.8550, its lowest since June 29. The rupee had settled 0.5 percent weaker on Thursday at 44.545/555.
The Swiss franc pulled back from a record high against the euro as nervous traders cut long positions in thin trade, but mounting fears of an economic quagmire in the United States and Europe were likely to keep safe-haven currencies in demand.
The yen edged higher and bounced away from a three-week low hit the previous day after Japan's massive yen-selling intervention, but concerns that the Japanese could intervene again limited the currency's rebound.
The dollar was under pressure against the yen Friday on widening fears of a global slowdown, despite speculation Japan may step into markets again and buy the greenback to temper the soaring yen.
The dollar traded at 78.54 yen, down from 78.93 yen in New York, a day after Japan intervened in forex markets to stem the yen's rise.
Commodities:
Gold edged up more than half a percent as investors used bullion to shelter from the storm engulfing financial markets on concerns that the United States may be facing another recession and Europe's debt crisis is spreading to some of its largest economies.
Spot gold rose 0.84 percent to $1,661.66 an ounce by 0617 GMT, having hit a low of around $1,641. Bullion struck a record around $1,681 an ounce on Thursday before losing much of the gains.
Morgan Stanley raised its price forecast for gold to $1,511 from $1,401 for 2011, citing enhanced contagion risk from the European debt crisis and continued uncertainty over U.S. macroeconomic outlook.It also lifted its 2012 price outlook to $1,624 from $1,330.
India gold futures extended gains for a fourth session to hit a new peak following a rally in overseas markets and a weaker rupee, which traded at its lowest level in five weeks, pushing physical traders to the sidelines ahead of a slew of festivals starting later next week.
The most-active gold for October delivery on the Multi Commodity Exchange (MCX) struck a record of 24,300 rupees per 10 grams, before trading 0.75 percent higher at 24,247 rupees.
Oil prices extended sharp losses, falling to near $85 a barrel Friday in Asia amid expectations of a slowing global economy will weaken demand for crude.
Benchmark oil for September delivery was down $1.31 to $85.32 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude tumbled $5.30 to settle at $86.63 on Thursday.
Global commodity benchmark the Reuters-Jefferies CRB index is down more than 4 percent for the week, its biggest drop since losing nearly 9 percent in May's across-the-board slide, also fueled by global growth concerns.
London copper dropped 2 percent to $9,165 a tonne, after hitting a low of $9,143 a tonne, a level not seen since June 29. Zinc was down more than 3 percent and lead, nickel and tin slid over 2 percent.
In Shanghai, aluminium and zinc slumped by their daily trading limits of 4 percent and 6 percent, respectively, while copper dropped 4.3 percent.
Shanghai rubber futures fell as much as 5.8 percent to 33,605 yuan per tonne and in Malaysia, palm oil futures dropped 2.6 percent to a session low of 3,021 ringgit.
In the grains market, Chicago Board of Trade wheat fell more than 2 percent to as low as $6.67 per bushel and corn dropped 1.6 percent to $6.90-1/2.
Bonds
Indian bond yields and swaps plunged as investors scurried to safe-haven government securities across regions on renewed concerns over global economic recovery.
Local bond dealers preferred to hold on to fixed-income securities as hazy global outlook outweighed domestic worries such as the central bank's persistent anti-inflationary stance to tame stubbornly high inflation.
The 10-year benchmark bond yield was 9 basis points lower at 8.31 percent, its lowest since July 26. Traders expect it to trade in a 8.28-8.35 percent band in the day.
Positions in equities and commodities were being scrapped and a scramble for the safety of cash and top-rated government bonds was on. In the global bond markets, short-term core European government debt was in demand.
Apart from signs that the U.S. and global economy is weakening -- despite record low interest rates and the pumping of liquidity into the system -- the focus was clearly on Europe, where bond yields in Spain and Italy have been blowing out, threatening the same kind of refinancing problems that have already smitten Greece, Ireland and Portugal.
Italian 10-year government bond yields rose above their Spanish equivalent. Italy has emerged as the market's major concern after a rescue deal that was intended to stop the spread of the crisis failed to convince investors it had the firepower to ease pressure on the vast Italian bond market.
http://economictimes.indiatimes.com/markets/commodities/Effect-on-currencies-and-commodities-markets-around-the-world/articleshow/9493064.cms
5 AUG, 2011, 03.51PM IST, ET NOW
Bumpy period ahead for global markets: HSBC
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In an interview with ET Now, Leif Eskesen, Chief Economist, HSBC, gives his views on the markets . Excerpts:
ET Now: How are you viewing what we are seeing playing across global markets? Do you believe this is just a beginning that we could see further downside simply because Europe once again opens deep in the red?
Leif Eskesen: We are certainly going to be in for a bumpy period ahead. We are seeing a number of issues. The big issue in Europe is to come through a resolution of how to deal with the debt situation. There are still a number of unanswered questions on that front. One of those is the extent to which the EFSF can buy bonds in the secondary markets, the extent to which we can come up with a new deal for Greece and the extent to which private sectors can get involved in help easing the debt burden for Greece. Some of these things are big questions and we are not at a stage yet to find decision on. So, there is a lot of uncertainty in the markets about that and that will linger until we get some more clarity. In the US, we did have some relief because the debt ceiling was raised but it is really a short-term fix and not a long-term solution. There is some uncertainty both in terms of can the two sides of the isle come up with an agreement on what needs to be done and secondly what are the implications for the ratings in the US. There are a number of unanswered questions and that is coinciding with weakening data out of the United States. The culprit of the uncertainty is in the markets now and this is why we are probably going to see a lot of choppy sessions going ahead over the next couple of months until the weak links get resolved.
ET Now: Where does one start to look at putting money because money has to ultimately flow somewhere?
Leif Eskesen: A lot of assets are flowing in to treasury markets right now. It is a typical safe haven asset class and gold has also been one of the beneficiaries. So, those typical resorts for money seeking refuge in these times will continue to be there. That would be the kind of flows we will continue to see.
http://economictimes.indiatimes.com/opinion/interviews/bumpy-period-ahead-for-global-markets-hsbc/articleshow/9493631.cms
RBI's monetary policy aimed at taming inflation: Govt
The government today said the Reserve Bank of India's current monetary policy is aimed at moderating inflationary pressure in the economy.
"The RBI's monetary policy stance aims to maintain an interest rate environment that moderates inflation and anchors inflationary expectation," Minister of State for Finance Namo Narain Meena said in written reply to Lok Sabha.
He further said that while the RBI rate hikes have increased the cost of borrowing, they are intended to lower inflation, which would provide relief to the common man.
"On an ongoing basis, government has been providing interest subventions for key sectors of the economy and sections of the society," he said.
Headline inflation stood at 9.44 per cent in June. The RBI has hiked its key policy rates 11 times since March 2010 to curb demand and tame inflation.
The latest hike of 50 basis points was announced by the apex bank in its first quarter review of Monetary Policy on July 26.
"Taking cues from the tightening of monetary conditions, banks have also been raising their deposit and lending interest rates. Scheduled commercial banks (SCBs) raised their deposit rates in the range of 25-500 basis points between mid-March 2010 and July 30, 2011 across all maturities," Meena said.
He added, "With regard to the lending rates, the base rates of banks, which replaced the erstwhile Benchmark Prime Lending Rate (BPLR) system from July 1, 2010, also increased in the range of 75-325 basis points during July 2010-July 2011."
China and Japan called for global cooperation on Friday after a financial market rout signalled fear that Europe's debt crisis is spinning out of control and the US economy is in danger of another recession.
The comments from Washington's two biggest foreign creditors pointed to growing concern of contagion as Asian stock markets tumbled following Wall Street's steep dive a day earlier. European markets were expected to open down sharply.
French President Nicolas Sarkozy will discuss financial markets with German Chancellor Angela Merkel and Spanish Prime Minister Jose Luis Rodriguez Zapatero on Friday, Sarkozy's office said in a statement.
In Japan, Finance Minister Yoshihiko Noda said global policymakers needed to confront currency distortions, the debt crises and concerns about the US economy.
"I agree that these subjects should be discussed," he told reporters a day after Japan intervened to sell yen. "Each problem is important, but how to prioritise these issues is something to discuss from here on in."
Traders said Japan sold yen for a second consecutive day to try to cap the currency's rise, which puts its exporters at a competitive disadvantage. The yen has become a popular safe-haven bet as concerns about the United States and Europe grow.
China Foreign Minister Yang Jiechi said US debt risks were escalating and countries should step up cooperation on global economic risks. Yang, who is visiting Poland, called on the United States to adopt "responsible" monetary policies and protect the dollar investments of other nations.
The US Federal Reserve holds its next policy-setting meeting on Tuesday, and economists say there is little more it can do to try to spur growth. A flurry of weak economic data and Europe's debt woes have fed fears of a fresh recession, triggering Thursday's sell-off on Wall Street, which was the worst since the global financial crisis.
IHS Global Insight said there was now a 40 per cent chance the United States could slip into recession.
CASH IS KING
The market rout extended into Asia on Friday, where markets skidded as much as 5 per cent. With investment options running out, funds are flooding into cash.
Japan and Switzerland are trying to reduce the allure of their markets as safe havens and after gold has more than doubled in price since the global financial crisis, many investors are having second thoughts about seeking refuge in the precious metal.
Bank of New York Mellon Corp said it had been overwhelmed with deposits, prompting it to charge some big customers a fee.
Investors slashed positions after the European Central Bank failed to include Italy and Spain in a fresh round of bond buying, even though yields on their debt shot above 6 per cent, the highest level since the euro was launched over a decade ago.
ECB President Jean-Claude Trichet said there was not full support in the central bank for the action, underscoring deep divisions within Europe over how to handle a debt crisis that has forced Greece, Ireland and Portugal to seek bailouts.
Investors worry that Italy and Spain, the euro area's third- and fourth-biggest economies, could be next.
Sarkozy said France, Germany and Spain had talked to Trichet. US officials from the Federal Reserve, the US Treasury and the White House declined to comment on whether they were holding any discussions with European or Asian officials.
Investors had hoped the ECB would target Spanish and Italian debt in reviving its bond-buying stimulus program, but it restricted the purchases to Irish and Portuguese securities, not Italy's or Spain's.
Roberto Perli, managing director at ISI Group and a former staffer at the Federal Reserve, called the ECB's action "mysterious."
"It sent the wrong message," he said. Belying a sense of crisis, many of Europe's policymakers are still on summer vacation, although EU Economic and Monetary Affairs Commissioner Olli Rehn broke away from his holiday to return to Brussels. He plans a news conference on Friday.
Italian Economy Minister Giulio Tremonti voiced frustration at the ECB's response. When he talked to Asian investors, they had told him: "If your central bank doesn't buy your bonds, why should we buy them?"
More stories from this edition of US Double Dip Recession
- Recession: US economy has never been on the road to recovery, says Paul Krugman
- Recession: US, EU, Japan must cooperate to avoid 'pessimism', says Tokyo
- Recession: China to support euro and global economy says Finance Minister Yang Jiechi
- Recession: Default averted, budget fight roars on
Three banks including HSBC, United Bank & Dena Bank hike lending rates; IOB revises deposit rates
Three banks -- HSBC, United Bank andDena Bank -- hiked their lending and base rates today by up to 50 basis points, following the recent tightening by the Reserve Bank to tame inflation hovering around 10 per cent.
On the other hand state-run Indian Overseas Bank(IOB) upped its term-deposit rates by up to 75 basis points.
Hongkong and Shanghai Banking Corporation India (HSBC) said it has revised upwards its base rate, the minimum lending rate, by 50 basis points to 9.75 per cent, with effect from yesterday.
Further, depositors with one of the country's oldest foreign banks will now get better returns on their savings as rates have been hiked by 50 basis points.
With this, HSBC India will now offer an interest of 9 per cent per annum to its customers for a term of 365 days and 9.5 per cent to senior citizens.
Besides, PSU lender United Bank of India increased its lending rate by 35 basis points with effect from today.
From now, the bank's base rate would stand at 10.60 per cent and benchmark prime lending rate(BPLR) at 14.85 per cent.
State-run lender Dena Bank today hiked its minimum lending rate or the base rate by 50 basis points to 10.70 per cent.
It also increased interest rates on loans given under Benchmark Prime Lending Rate (BPLR) by a similar 50 basis points to 15.75 per cent.
Dena Bank said it has raised interest rates on deposits by 50-150 basis points depending on their maturity level.
Also, with immediate effect, public sector IOB revised rates for deposits for a period of 91 to 120 days from 7.25 per cent to 7.75 per cent, while those for period of 121 to 179 days it has been revised from 7 per cent to 7.75 per cent.
The rates for deposits for 180 to 269 days has been hiked from 7.25 per cent to eight per cent, while for deposits ranging between 270 to 332 days it has been increased to eight per cent from the present 7.50 per cent.
The interest rates for deposits with a period of 334 days but less than one year has been revised to eight per cent from 7.50 per cent.
More than dozen banks have already announced hike in interest rates following the monetary action by the RBI on July 26 and many more are likely to do so in the coming days as cost of funds has gone up.
Yesterday, housing mortgage firm HDFC had raised lending rate by 50 basis points to 16.50 per cent with effect from August 1.
The hike in interest rates come after the Reserve Bank raised its key policy rates last week by a hefty 50 basis points to check high inflation.
The short-term lending (repo) rate of RBI now stands at 8 per cent and the short-term borrowing (reverse repo) rate by a same margin to 7 per cent.
Subsequently, the interest rate under the Marginal Standing Facility, an additional borrowing window, has gone up to 9 per cent from the earlier level of 8.5 per cent.
5 AUG, 2011, 01.35PM IST, PAUL KRUGMAN,NEW YORK TIMES
Recession: US economy has never been on the road to recovery, says Paul Krugman
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In case you had any doubts, Thursday's more than 500-point plunge in the Dow Jones industrial average and the drop in interest rates to near-record lows confirmed it: The economy isn't recovering, and Washington has been worrying about the wrong things.
It's not just that the threat of a double-dip recession has become very real. It's now impossible to deny the obvious, which is that we are not now and have never been on the road to recovery.
For two years, officials at the Federal Reserve, international organizations and, sad to say, within the Obama administration have insisted that the economy was on the mend. Every setback was attributed to temporary factors - It's the Greeks! It's the tsunami! - that would soon fade away. And the focus of policy turned from jobs and growth to the supposedly urgent issue of deficit reduction.
But the economy wasn't on the mend.
Yes, officially the recession ended two years ago, and the economy did indeed pull out of a terrifying tailspin. But at no point has growth looked remotely adequate given the depth of the initial plunge. In particular, when employment falls as much as it did from 2007 to 2009, you need a lot of job growth to make up the lost ground. And that just hasn't happened.
Consider one crucial measure, the ratio of employment to population. In June 2007, around 63 percent of adults were employed. In June 2009, the official end of the recession, that number was down to 59.4. As of June 2011, two years into the alleged recovery, the number was: 58.2.
These may sound like dry statistics, but they reflect a truly terrible reality. Not only are vast numbers of Americans unemployed or underemployed, for the first time since the Great Depression many American workers are facing the prospect of very-long-term - maybe permanent - unemployment. Among other things, the rise in long-term unemployment will reduce future government revenues, so we're not even acting sensibly in purely fiscal terms. But, more important, it's a human catastrophe.
And why should we be surprised at this catastrophe? Where was growth supposed to come from? Consumers, still burdened by the debt that they ran up during the housing bubble, aren't ready to spend. Businesses see no reason to expand given the lack of consumer demand. And thanks to that deficit obsession, government, which could and should be supporting the economy in its time of need, has been pulling back.
Now it looks as if it's all about to get even worse. So what's the response?
To turn this disaster around, a lot of people are going to have to admit, to themselves at least, that they've been wrong and need to change their priorities, right away.
Of course, some players won't change. Republicans won't stop screaming about the deficit because they weren't sincere in the first place: Their deficit hawkery was a club with which to beat their political opponents, nothing more - as became obvious whenever any rise in taxes on the rich was suggested. And they're not going to give up that club.
More stories from this edition of US Double Dip Recession
- Recession: US, EU, Japan must cooperate to avoid 'pessimism', says Tokyo
- Recession: China to support euro and global economy says Finance Minister Yang Jiechi
- Recession: China, Japan urge global talks on debt crises
- Recession: Default averted, budget fight roars on
http://economictimes.indiatimes.com/news/international-business/recession-us-economy-has-never-been-on-the-road-to-recovery-says-paul-krugman/articleshow/9490804.cms
5 AUG, 2011, 06.06PM IST, AFP
G7, G20 input on euro crisis 'critical': EU
BRUSSELS: The EU said Friday that the input of G7 and G20 partners will be of "critical importance" in efforts to resolve the spiralling eurozone debt crisis."The current turmoil is not just affecting Europe but has a global dimension and global repercussions and ramifications," EU Economic Affairs Commissioner Olli Rehn said.
"That's why the solution has to be global as well. And that's why international policy coordination through the G7 and G20 is of critical importance."
The Group of Seven brings Canada, Japan and the United States in alongside non-euro Britain and the the eurozone's top three economies -- Germany, France and Italy.
After the United States raised its debt ceiling again this week, fears rose of a renewed global downturn. The Group of 20 also includes major economies such as Brazil, China, India and Russia.
Both bodies were brought in by the eurozone during the final stages of planning for earlier bailouts.
Among the reasons Rehn identified for Italy and Spain facing sharply rising debt risk premiums on bond markets was the general picture of concern outside Europe.
"Investor sentiment has been negatively affected by the impact of the debt ceiling negotiations in the United States and recent data suggesting a soft patch in the global economy," he added.
05/08/2011
Kalmadi appointed despite serious objections: CAG
Dragging the Prime Minister's Office in the CWG mess, the Comptroller and Auditor General (CAG) on Friday said Suresh Kalmadi had been appointed Organising Committee chief at its behest in 2004 despite "serious objections" and highlighted how wasteful expenditure worth several hundred crore rupees was caused in organising it.
In its voluminous report on the October 2010 mega sporting event, the CAG found "irregularities", "favouritism" and "bias" in award of contracts for various projects like construction and development of Games venues and Village, infrastructure development and beautification in Delhi and broadcasting rights.
Lack of governance structure
The government auditor also faulted the government for not setting up a "single point of authority and accountability" and said there was "lack of clear governance structure, a multiplicity of coordination committees were created, disbanded and reconstituted at different points of time."
Referring to the controversial appointment of Mr. Kalmadi, the CAG said, "The (CWG) bid document of May 2003 envisaged the OC as a 'government-owned registered society' with the Chairman of OC Executive Board (EB), being a government appointee, and the IOA President being only the EB Vice Chairman."
However, "the OC was ultimately set up in February 2005 as a 'non-government registered society' with the IOA President Shri Suresh Kalmadi as the Chairman of the OC EB," it pointed out.
The CAG said "despite serious objections" from the then Sports Minister late Sunil Dutt, Mr. Kalmadi was "appointed as the OC Chairman, based on a PMO recommendation of December 2004.
"This decision facilitated conversion of the originally envisaged government-owned OC into a body outside governmental control without commensurate accountability to government and concomitant controls to ensure propriety and transparency (despite full financial guarantee and funding from government)."
The auditor said attempts in 2007 by then Sports Minister Mani Shankar Aiyar and then Sports Secretary S. K. Arora with the PMO, the Group of Ministers and the Cabinet Secretariat, "highlighting the ineffective position of the Sports Ministry in exercising control over the OC, met with strong resistance from the Chairman, OC, and were hence rendered unfruitful."
It pointed out that the commitment of the Central government in conjunction with Delhi government in September 2003 to become parties to the Host City Contract (HCC) was "critical to the success of the IOA bid for Delhi" to host the Games.
"...thus, the Games became the property of the nation, rather than merely that of the IOA. This was, however, inadequately reflected in the subsequent construction of the Organising Committee," the CAG observed.
"In our opinion, the unique challenge of managing and monitoring the activities of multiple agencies for delivering the Games project should have been met by entrusting its stewardship to a single point of authority and accountability, with adequate mandate to ensure all deliverables in time, to cost and to specified quality standards.
Source: PTI
Dow surges back from steep decline
The blue chips recover all of a 245-point loss -- and then quite a bit -- thanks to possible ECB help for Spain and Italy. But investors are clearly worried about the U.S. economy and the European debt crisis. Oil rises; gold slips.
By Charley Blaine on Fri, Aug 5, 2011 12:29 PM
- 52%48%
Updated: 2:21 p.m. ET.The jobs report for July was better than expected. In fact, May and June were better for jobs than originally thought.
Investors? Frankly, they've all over the place. A 171-point gain for the Dow Jones industrials ($INDU) right after today's open morphed into a 244-point loss by mid-morning before a big rebound set in that's pushed the Dow back to a gain of more than 60 points.
"The market's got ADD," Rebecca Patterson, chief markets strategist at J.P. Morgan Asset Management, Institutional, told CNBC.
What pushed stocks lower was talk that Standard & Poor's might downgrade U.S. debt after the close. S&P would not comment on the talk. What set off the bounceback: news that the European Central Bank would buy Spanish and Italian government bonds to shore up those markets -- if governments enact financial reforms. Apparently, they plan to do just that.
At 2:21 p.m. ET, the Dow was up 108 points, or 1%, to 11,492. The Standard & Poor's 500 Index ($INX) was up 8 points, or 0.6% to 1,208. The Nasdaq Composite Index ($COMPX) was down 5 points, or 0.2%, to 2,551. TheNasdaq-100 Index ($NDX.X), which tracks the largest Nasdaq stocks, was 2 points, or 0.1%, to 2,209.
Article continues below.
Due largely to Thursday's blowoff that saw the Dow fall 513 points, the major averages are headed toward their worst weekly performances since the depths of the 2008 financial crisis.
In addition to a potential downgrade and the Italian situation, traders simply don't like to hold stocks over the weekend if the market is weak. So, it will take some doing to get the market higher.
Gold settled down $7.20 to $1,651.80 an ounce. Silver (-SI) was off $1.22 to $38.211 an ounce.
Crude oil (-CL) reversed a decline to as low as $82.87. Instead, it was up 21 cents to $86.84. Brent crude rose $1.48 to $108.73.
The dollar hit a new low against the Swiss franc and was lower against the British pound, the euro and the Japanese yen.
The jobs report could have been worse
The jobs report showed unemployment dropping to 9.1% for July from June's 9.2%. Payroll employment was up 117,000, compared with a consensus estimate of around 85,000. That compares with of 46,000 in June and 53,000 in May. (The June and May gains represented sizable revisions from earlier estimates).
Private-sector employment was up 154,000, but public employment was down 37,000. Of that, 23,000 was due to the state government shutdown in Minnesota.
The strength of the gains were in health care, retail and manufacturing. The mining sector, which includes the oil and gas industry, gained 9,000 jobs.
Hourly earnings were up 0.4% to $23.13 an hour. But the average work week was stagnant at 34 hours.
The report was a relief, if only because it wasn't as bad as many investors had feared after weak reports earlier on gross domestic product and the Institute for Supply Management's report Monday on manufacturing.
But the report showed that the U.S. job market isn't healthy, wrote Philippa Dunne and Doug Henwood of the Liscio Report today. "We never bought the double-dip argument; instead, we've held that this is a typical post-financial-crisis recovery, meaning grindingly slow and uneven."
From gloom to cheer
The market looked to be in freefall. Two hours later, the rally is on, the market has taken on a far more bullish tone. Energy shares had been among the big losers. Not now. Exxon Mobil (XOM), Chevron (CVX) and Schlumberger(SLB) were up 1.9% to $75.33, 1.1% to $97.89 and 1.1% to $81.68, respectively.
Financial stocks were the the laggards.
Bank of America (BAC) had been down as much as 9.1% to $8.03 but recovered to $8.43, off 4.5%. % to $8.12. The shares are off about 16% this week and nearly 23% for the year. The Financial Select SPDR (XLF) exchange-traded fund had been off as much as 3.8% but was off just 0.4% to 1363 at 1:30 p.m. The ETF, which tracks the financial sector of the S&P 500, is off nearly 7.9% this week.
Twenty-six of the 30 Dow stocks were higher, led by : Kraft Foods (KFT), Procter & Gamble (PG) (on the basis of decent earnings) and Cisco Systems (CSCO). Bank of America was the laggard. At one point, IBM (IBM),Caterpillar (CAT) and Chevron (CVX) were responsible for more than 70 points of the Dow's decline. Now, they've added 30 points to the Dow.
Meanwhile, more than 60 Nasdaq-100 stocks were higher, led Priceline.com (PCLN), which reported very strong earnings, up 9.7% to $529.50. Next were Dutch biotech company Qiagen (QGEN), up 6.2% to $15.94 and Garmin(GRMN), up 3.6% to $31.23. Green Mountain Coffee Roasters (GMCR) was the laggard, down 5.2% to $97.40.
Apple (AAPL) had fallen to as low as $362.57 but recovered to a gain of 0.2% at $378.19. It's off 3.2% this week.
Due largely to Thursday's blowoff that saw the Dow fall 513 points, the major averages are headed toward their worst weekly performances since the depths of the 2008 financial crisis.
In addition to a potential downgrade and the Italian situation, traders simply don't like to hold stocks over the weekend if the market is weak. So, it will take some doing to get the market higher.
Gold settled down $7.20 to $1,651.80 an ounce. Silver (-SI) was off $1.22 to $38.211 an ounce.
Crude oil (-CL) reversed a decline to as low as $82.87. Instead, it was up 21 cents to $86.84. Brent crude rose $1.48 to $108.73.
The dollar hit a new low against the Swiss franc and was lower against the British pound, the euro and the Japanese yen.
The jobs report could have been worse
The jobs report showed unemployment dropping to 9.1% for July from June's 9.2%. Payroll employment was up 117,000, compared with a consensus estimate of around 85,000. That compares with of 46,000 in June and 53,000 in May. (The June and May gains represented sizable revisions from earlier estimates).
Private-sector employment was up 154,000, but public employment was down 37,000. Of that, 23,000 was due to the state government shutdown in Minnesota.
The strength of the gains were in health care, retail and manufacturing. The mining sector, which includes the oil and gas industry, gained 9,000 jobs.
Hourly earnings were up 0.4% to $23.13 an hour. But the average work week was stagnant at 34 hours.
The report was a relief, if only because it wasn't as bad as many investors had feared after weak reports earlier on gross domestic product and the Institute for Supply Management's report Monday on manufacturing.
But the report showed that the U.S. job market isn't healthy, wrote Philippa Dunne and Doug Henwood of the Liscio Report today. "We never bought the double-dip argument; instead, we've held that this is a typical post-financial-crisis recovery, meaning grindingly slow and uneven."
From gloom to cheer
The market looked to be in freefall. Two hours later, the rally is on, the market has taken on a far more bullish tone. Energy shares had been among the big losers. Not now. Exxon Mobil (XOM), Chevron (CVX) and Schlumberger(SLB) were up 1.9% to $75.33, 1.1% to $97.89 and 1.1% to $81.68, respectively.
Financial stocks were the the laggards.
Bank of America (BAC) had been down as much as 9.1% to $8.03 but recovered to $8.43, off 4.5%. % to $8.12. The shares are off about 16% this week and nearly 23% for the year. The Financial Select SPDR (XLF) exchange-traded fund had been off as much as 3.8% but was off just 0.4% to 1363 at 1:30 p.m. The ETF, which tracks the financial sector of the S&P 500, is off nearly 7.9% this week.
Twenty-six of the 30 Dow stocks were higher, led by : Kraft Foods (KFT), Procter & Gamble (PG) (on the basis of decent earnings) and Cisco Systems (CSCO). Bank of America was the laggard. At one point, IBM (IBM),Caterpillar (CAT) and Chevron (CVX) were responsible for more than 70 points of the Dow's decline. Now, they've added 30 points to the Dow.
Meanwhile, more than 60 Nasdaq-100 stocks were higher, led Priceline.com (PCLN), which reported very strong earnings, up 9.7% to $529.50. Next were Dutch biotech company Qiagen (QGEN), up 6.2% to $15.94 and Garmin(GRMN), up 3.6% to $31.23. Green Mountain Coffee Roasters (GMCR) was the laggard, down 5.2% to $97.40.
Apple (AAPL) had fallen to as low as $362.57 but recovered to a gain of 0.2% at $378.19. It's off 3.2% this week.
No double dip, but economy's stuck in low gear
Jobs data better than expected, but government has few options to do more
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Jump to videoEmployers hired more workers than expected in July
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The U.S. may have dodged the double-dip bullet with the latest jobs data, but there is little more the government can do to rev up an economy stuck in first gear.
As the impact of trillions of dollars of government stimulus continues to fade, Congress and President Barack Obama have few tools left to revive growth. Federal Reserve policymakers meet next week, but their toolbox may contain little more than bubble gum and wire.
The government's monthly job report pointed to a surprise uptick in hiring in July. Payrolls expanded by 117,000, the Labor Department said on Friday, as private employers added 154,000 workers. That offset the continuing shrinkage of federal, state and local government payrolls, which cut 37,000 positions in July, a ninth straight month of government job losses.
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The gains helped the unemployment rate edge down to 9.1 percent from 9.2 percent in June. Job counts for May and June were revised to show 56,000 more jobs added than previously reported.
"This is a fabulous number," said Mark Zandi, chief economist at Moody's Analytics. "We're not out of the woods yet, but this is a good sign that we are going to avoid recession."
Story: U.S. economy created 117,000 jobs in July; jobless rate slipsRecession fears have risen in the past few weeks as economic data have pointed to a recovery losing steam. The nation's gross domestic product, the broadest measure of economic activity, grew at a sluggish 1.3 percent annual rate in the second quarter, according to initial estimates, and only 0.4 percent in the first three months of the year, according to the latest revision.
Private economists have been slashing growth forecasts for the second half of the year. Most still expect a modest pickup as the impact of higher oil prices fades and the auto industry shakes off a slowdown in shipments from Japan following March's earthquake.
Companies are still hiring, according to Tig Gilliam, head of the North American region for Adecco Group, a global human resources company
"If we were going into the double-dip recession, we would see companies cutting temporary employees in large numbers," he said. "That's the first place they go — it's the first reaction to reduce costs. They're not doing that."
Gilliam said most large companies have plenty of cash to keep workers on the payroll as they look for new business. Then they can hire selectively.
A closer look at Friday's jobs data reveals continued underlying weakness in the labor market. While the payroll survey provided good news, a separate survey of households showed a drop of 38,000 jobs in July, the third decline in four months. The jobless rate fell because 193,000 people left the work force. Measured against the total working-age population, employment fell in July to 58.1 percent, a 28-year low, according to Paul Dales, senior economist at Capital Economics.
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Bigger picture
"The bigger picture, then, is that two years after the recession ended the labor market has not really recovered at all, and may even have gone backwards," he said.
The recent slowdown in recovery coincides with the fading impact of the government's massive stimulus package following the worst financial collapse since the Great Depression. To jump-start the economy after a virtual shutdown in lending, the government devoted roughly $1.5 trillion to bail out the banking system and boost government and consumer spending.
In addition, the Federal Reserve has purchased roughly $2.3 trillion in bonds to pump cash back into the financial system.
The central bank's latest round of $600 billion worth of bond-buying ended in June. A series of weak economic data in July prompted speculation the Fed might start buying another round of bonds to pump even more cash into the system. But with companies already hoarding cash, it's not clear that would have much impact.
"We have $600 billion of stimulus already out there, and it has made a marginal difference," said former Fed governor Mark Olson. "You add another trillion to the $600 billion and then you look at the difficulty of unwinding that, and I think there will be real reservations to move forward. "
As the bitter battle over the debt ceiling showed, there is no appetite in Congress for any additional spending to stimulate the economy.
"There are very few cushions available," said Mohamed El-Erian CEO of PIMCO, the giant investment firm. "The policy responses are limited both by ineffective tools and dysfunctional politics."
Even with the best policy tools and the most favorable political climate, the damage from the financial collapse of 2008 would take years to repair. Unlike prior cyclical downturns in demand, the Great Recession was caused by the aftermath of the worst financial collapse since the 1930s. After a decade of unsustainable government and consumer borrowing, the economy is slowly working off the trillions of dollars of debt that remains. Some analysts believe the process could take years to complete.
"The aftermath of those rare, financially driven recessions is slow, painful, and protracted," said Roger Altman, an investment banker and former Treasury official. "That's exactly what we're seeing. It's going to take a while for us to rebuild ourselves."
U.S. Economy: Soft Landing, Double Dip Recession, or 1937?
The recent news on the economy, plus the implicit forecast made by the stock market this week, have people talking again of a second take for the Great Recession. I'm open to suggestions, and maybe next week I'll feel differently, but at this point there seems to be little hard evidence, and no more than optimism, pointing to anything other than a downturn.
Ex-Obama adviser thinks chances of a double dip recession are 50-50
Upper-income consumers are spending a bit more, says the Gallup polling organization, $128 per day in July versus $119 a year ago (those numbers are self-reported and Gallup does not vouch for their accuracy). But for most of us, the middle and lower-income household group earning $90,000 or less, spending is down from a year ago, to $63 per day from $64. (For both groups, however, spending has increased, a little, pretty much each month this year.) Let's call it flat (although a lot more is going into the gas tank).
The business picture is not so good either. The global Purchasing Managers Index has been in retreat for several months, and most recently was reported by the Financial Times to be "at close to a standstill (sorry, no graph):"
Compiling individual data together, a global manufacturing PMI, sponsored by JPMorgan, fell from a level of 52.3 in June to 50.6 in July, its lowest level for two years. The level of the index suggested output growth was close to a standstill and the rebound in goods production had petered out as manufacturers continued to suffer from supply chain problems in the aftermath of the Japanese tsunami, high commodity prices, and austerity measures squeezing household incomes.
Joseph Lupton, global economist at JPMorgan, said: "Growth of the global manufacturing sector drifted closer to stagnation in July. Hopes of a near-term acceleration may have also been knocked by a slight retreat into contraction territory by the new orders index."
And of course unemployment is stubbornly high. This morning's report showed 154,000 jobs gained by the private sector, and 37,000 lost in government. That's positive but not keeping up.
So how close are we to a double dip? In The New York Times, Floyd Norris points out the similarities between today and the early 1980s.
In each case the first recession was caused in large part by a sudden withdrawal of credit from the economy. The recovery came when credit conditions recovered.
And in each case the second recession began at a time when the usual government policies to fight economic weakness were deemed unavailable. Then, the need to fight inflation ruled out an easier monetary policy. Now, the perceived need to reduce government spending rules out a more accommodating fiscal policy.
While the 1981 twin valleys are the recent precedent, let's not forget the most famous double-dip, namely the Great Depression. Roosevelt's Keynesian fiscal policies had turned the economy around by 1934, but Congress in 1937 insisted on cutbacks to government spending (sound familiar?), and measured annually, GDP fell back three percent in 1938. Not long after came the buildup to WWII and several years of growth in the high teens:
Read more: http://moneywatch.bnet.com/economic-news/blog/macro-view/us-economy-soft-landing-double-dip-or-1937/3722/#ixzz1UBHx5J6q
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