China billion dollar economy stimulus package

It's often said, when going gets tough, the tough gets going. But in this economy crisis, even the toughest of all economies failed to survive. China announces a 586 bn$ economy package, which they will spend in coming years in building country's infrastructure and also smooth line lending process in the country financial system.

Though the news of economy stimulus helped stocks surge in Asian economies, while the same news caused stocks plunge in the US markets, with US stocks dropped as a worsening outlook from companies like Glodman Sachs and Google Inc.

Lets wait and see how this economic stimulus package will help revival of the Chinese economy.

Thanks&Regards,
Mohit Kumar

Feeling the financial Pain by BRIC

BRIC, acronym stands for Brazil, Russia , India and China basically one of the highest growing economy in the recent times, and according to some of the industry experts in coming years, may become biggest economies in the World.

But recent financial crisis in US and Europe recently affected this BRIC economies, while stock markets in this region have almost lost their 50% of their valuations in recent times. Liquidity crisis, credit crunch, inflation , unemployment, layoffs, bad consumer sentiments are looming all over this BRIC economies, thus forming a bad time for these economies.

But this financial crisis, really helped these BRIC industries to remove themselves from the dependencies of developed economies, and instead of more export centric, try to build their own domestic consumption, diversify their business, develop an inhouse R&D facilities.

Though it will be difficult to keep themselves aloof in this flat world, but it will certainly help them to move smoothly in this financial crisis.

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Thanks&Regards,
Mohit Kumar

Obama Solution to Economy Crisis : Greener Energy

After Mr. Obama defeated Mr. Mcain and marked his place as the 44th US President. With the winning of the US presidential race, the next big task which revolves around the new president is revival of the economy and creation of new jobs. While US employment rate is at 14 year low, at 6.5%, the creation of new jobs in this difficult times is really a difficult times.

To all the economy crisis, Obama solution is patronage of Greener Energy soltuions, which included building of Wind Turbines, fitting of solar cells units, leveraging of technolgy in building environmental friendly coal.With inclusion of such a new initiatives he pointed that it will create around 5 million jobs.But the question is where will the funding of such plans will come from? Will the govt. once again put additional tax on the tax payers, and raised the required fund? But raising tax again means, making Obama unfavorable among US voters. So this will be the last thing the new preisdent and his transition team will think of. But currently Obama is pursuing to implement its Cap and trade plan, under which Govt. will auction permit to companies, and with every successive year it will reduce permits, thus reducing the Greenhouse gas emission in the atmosphere. The money generated with this auction will be used for more job creation.

Though Obama greener plans currently sounds more oppurtnistic and in favor of the economy, but lets see what will happen next, when he will put this plans into execution.

Thanks&Regards,
Mohit

Tough task ahead for Mr. Obama

Ex-Senator of Illinois state, and now the 44th president of United State, the African American Barack Obama will join Us presidential office 10 weeks from now. But it will certainly will not be an easy power transition from Mr. Bush to Mr. Obama.

Some of the key task which the new president have to take care, after he take over the office from Mr. Bush.

1. Economy Revival : Implement new strategies to revive the economy.

2. Maintain peace in the Gulf region .

3. Form strategies and policies to improve situation is Iraq and Afghanistan.

4. Try to form cordial relations with Iran and North Korea, and look out ways to check on their Nuclear ambition.

5. Play a big daddy role in improving bilateral ties between India and Pakistan.

6. Reduce tensions with Russia regarding deployment of Anti-Missile system in Europe.

7. Reduce unemployment figures.

8. Improve health condition of Americans.

9. Work on world peace.

10. Take measures to prevent Global Recession.

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Thanks&Regards,
Mohit Kumar

US stock surges on Election Day

As US 2008 presidential candidate is on the brink, while on one side US voters putting their votes in the ballot boxes, on the other side, US investors came back to bourses, with US stocks surges by more than 300 point on the election day. The Energy and the banking shares were the front end shares in today's rally. The S&P 500 added app. 40 points and closes above 1000 points, while Dow Jones Industrial Index settled above 9600 points. Some Wall Street analysts also pointed out that the Armageddon of Crisis is over, with market may see some better days ahead. But from my opinion, the state of crisis is still not over, this may be short bull run in this highly volatile scenario, and with change of leadership in the US politics may helped bull to come out from the den, but still its a long way to go before market will be in a position to move on smoothly.

Thanks&Regards,
Mohit

Upheaval task for new US president.

With every passing day, the US presidential race become more exciting, sometimes election polls favored Obama, while next time election poll pendulum moved towards Mcain. But whoever win the US 08 presidential election, it will be certainly a sleepless night for them. As first and foremost task for the new president will be US economy revival from the current Financial crisis, secondly he have to bring back investors back to Capital Market, and make world believe in the sanctity of the US financial system. Besides, they have to make sure that 700bn$ bailout package sanctioned by Bush administration should be spent in a proper way, and try to return money to already oppressed US taxpayers.

Lets wait and see how new US president will formulate his policies.

Thanks&Regards,
Mohit

More Job Cuts in this Financial Downturn

With financial crisis and the fear of global recession engulf everybody in the world. With financial crisis there are some sectors which are more vulnerable to job cuts.

Some industirs which will suffer the most :

1. Housing : The sector which was the root cause the worst financial crisis after 1929, Great Depression, is now also the most vulnerable in terms of job lost, and will witness more layoff in days to come. Jobs which are more vulnerable in housing sectors are Mortgage brokers, homemakers, mortgage lenders, commercial real estate and real state agencies.

2. Financial : After housing , financial people found their jobs more un-secure in this crisis. With stock market tumbling world over, and no body in the financial markets are lending money to each other, which leads to a bad business for banks and the financial sectors and thus may result in more job cuts.

3. Retail : Even before the financial crisis, retailers were railing with the rising oil prices and rising inflation, which kept the customers out of shopping counters. But after the financial crisis, the thing seems to even worsen for the retailers, with more layoff looking over different sectors, and people want to cut on their spending, in order to save money for the worst time ahead. As more and more customers, spending less, which means hard time for retailers.

4. Autos : Just like retail, first it was oil and now its liquidity crunch which is falling on the revenue of the auto majors in the industry. While sales at big three automakers had already taken a hit this year, and prediction is not that good for the last quarter, which may leads to more job cut in this sector also.

5. Travel : Airline sectors have already started layoff before the crisis, and after the crisis, with customer liked to save their money and corporates liked to cut costs by leveraging technology which kept their employees from traveling. So as less people travel this season, which means more layoff in this industry.

Thanks&Regards,
Mohit