Category Archives: Economy

Top Trends in Southeast Asia for 2013

Economy, ,

Investments in Asia are becoming more and more widespread as the region’s economy shows significant signs of growth. Financial services firms and investment fund management companies like Oasis Investments Limited are keeping their finger on the pulse of this year’s Asia investment trends.

The first is the emerging Yuan bloc. 2012 showed growth in Thailand, Malaysia, Singapore, Indonesia and the Philippines, while the end of the year boasted a significant currency correlation to the Chinese Yuan as opposed to the United States dollar. This relationship will continue to evolve throughout 2013.

Next, property values in Singapore are rising rapidly. Regulations in the region have failed to cause significant changes in lending standards, and interest rates on property are close to zero.

Furthermore, the recent drop in coal and iron prices have opened up opportunities for road, rail and port building near Myanmar, Cambodia, Northern Thailand and Vietnam. Many companies have invested in coal-producers throughout Asia, including China Shenhua Resources and Bumi Resources.

Demand for liquefied natural gas is also on the rise, prompting the U.S. and Canada to appoint massive LNG export points all across the Gulf Coast.

 

Better Late Than Never: Sandy Victims Applaud Aid Package Passage in House

Economy, News, , , ,
New Jersey Governor Chris Christie

In a joint statement delivered by New Jersey Republican Governmor Chris Christie and Democratic New York Governor Andrew Cuomo, the leaders stated their appreciation of the passage of a $50.5 billion Hurricane Sandy recovery aid package  in the House of Representatives.

“The tradition of Congress of being there and providing support for Americans in times of crisis, no matter where they live across this great country, lives on in today’s vote in the House of Representatives.”

The legislation allocating the funds will now have to go to the Democratic- controlled Senate, where it is sure to pass through quickly.

Republicans in the House did not move to pass the aid package as quickly as they could, debating on the effects of such a large allotment of funds on US debt reduction, spending and taxes.

Are We Falling Off the Fiscal Cliff?

Economy, ,
President Obama
President Obama Trying to Steer Country Away from Fiscal Cliff

Washington lawmakers have until Tuesday to come to an agreement which will cancel the across-the-board spending cuts and automatic tax increases. If not Americans can expect the economy to tumble off what has been so famously dubbed “the fiscal cliff.”

Falling over this cliff, economists affirm, will adversely affect financial markets around the world and send the US economy into a nose dive back into recession. Therefore Republicans and Democrats are working overtime, including holding a rare Sunday session, to come to an agreement whereby taxes are maintained at today’s levels for the nation’s middle class, while entitlement and other programs are cut according to the desires and needs of legislators.

“Now I think that over the next 48 hours, my hope is that people recognize that, regardless of partisan differences, our top priority has to be to make sure that taxes on middle-class families do not go up. That would hurt our economy badly,” Obama said in an interview.

Obama added an optimistic note that,

“Democrats and Republicans both say they don’t want taxes to go up on middle-class families. That’s something we all agree on. If we can get that done, that takes a big bite out of the ‘fiscal cliff.’ It avoids the worst outcomes.”

Obama has a plan even if the worst case scenario transpires and no agreement is reached.

“And if all else fails, if Republicans do in fact decide to block it, so that taxes on middle class families do in fact go up on January 1st, then we’ll come back with a new Congress on January 4th and the first bill that will be introduced on the floor will be to cut taxes on middle class families,” he said.

Oil Prices Climb in Face of Federal Reserve Meeting

Commodities, Economy, , , ,
Oil Up on Nymex

The price of oil lurched upwards on Tuesday despite the fear that the Chinese economic recovery may not be everything investors wished for. Driving the upward direction of oil is the hope of investors that the US Federal Reserve will implement new strategies which will help give the US economy a bit of a jump start.

The January delivery price for Benchmark crude was $85.80 per barrel, representing a 23 cent rise during late afternoon Bangkok time electronic trading on the New York Mercantile Exchange. The same contract had fallen only the day before by 37 cents on the Nymex, closing at $85.56.

Brent crude, which is used more to establish the price of international types of oil, was also up. On the ICE futures exchange in London the price was $107.66, an increase of 33 cents from the previous day’s closing price.

The Federal Reserve began a two day policy meeting on Tuesday. The results of the meeting are widely believed to be the purchase of more long-term Treasury bonds in an effort to replace the program which expires with the coming new year.

Geithner Urges Republicans to Relent on Tax Hike Proposal

Economy, News, , ,
Treasury Secretary Timothy Geithner

The two sides of the deficit issue took to the Sunday morning talk shows airing their views on how to approach the looming fiscal cliff. The deadly combination of tax hikes and spending cuts will be automatically triggered at the end of the year if no compromise deal is reached between the sides.

Secretary of the Treasury Timothy Geithner, and Obama’s chief negotiator, urged Republicans to give specific ideas on ways to cut the deficit during his interview on CNN’s “State of the Union” television broadcast. He even predicted that the Republicans will agree to raise taxes on the wealthiest Americans in order to reach a deal by the end of the year and avoid and economic catastrophe.

Speaking on “Fox News Sunday” Republican Speaker of the House John Boehner begged to differ and reiterated his position against tax hikes, leaving the debate at an impasse.

"Here's the problem," Boehner told "Fox News Sunday" as both sides took their battle to TV talks shows. "When you go and increase rates, you make it more difficult for our economy to grow," he said.

Boehner added that if Republicans in the end did give in to Obama’s demand for $1.6 trillion in new tax revenue, “He’s going to spend it,” and not lower the deficit with the funds.

The Obama camp believes that they have the upper hand on the issue, giving Geithner the confidence to reiterate his stand that, "There's not going to be an agreement without rates heading up."

Polls show that most Americans support tax increases on the rich, and a few dissenters in what was in the past a solid wall of Republican opposition to such a move has convinced the Obama side that they will prevail on this issue.