The worst is over for the global economy and a recovery is likely to begin later this year, says a bank report released here.
The global economic crisis has bottomed out and positive indicators have begun to emerge, said the report by the Royal Bank of Canada which is the top bank in the country. It said there were encouraging signs for global recovery as the US economy was showing signs of recovery after worst-ever declines in its GDP in the last quarter of 2008 and the first quarter of 2009.
Thanks to low interest rates, an easing in credit crunch and Obama's fiscal stimulus package, the US housing market is already showing some stability, it said. This, coupled with rising consumer confidence, hints at a moderate recovery for the US economy by the second half of 2009, the report said.
"The benefits of significant fiscal and monetary policy stimulus (in the US) are starting to have traction," said RBC chief economist Craig Wright. He said, "There is an unprecedented amount of money bolstering the world economy."
"What we will be watching is the impact this spending has on labour markets, as well as household and business confidence. The degree of impact will be a crucial factor in shaping economic recovery."
Though the recession has thrown six million Americans out of jobs - pushing the unemployment rate to a record 9.4% in 25 years, the recent data suggests that this rate has started declining, the report said.
It said home sales in the US are also poised to pick up as affordability improves.
But the most potent indicator of the onset of recovery was that US consumer spending has increased after six months of decline.
This trend will continue in the second half of 2009 because of low interest rates, firmer credit markets and fiscal stimulus, the report said.
About Canada, the report said its economy will shrink by 2.4% this year. With over 360,000 jobs lost nationwide since October, consumer confidence will remain low as the unemployment rate peaks at 9.2% by the end of 2009.
The report forecast that the Canadian dollar, which has rallied 15% since March, will hover between 85 to 92 cents US for the remainder of this year.
Agencies
Showing posts with label US economy. Show all posts
Showing posts with label US economy. Show all posts
Tuesday, June 16, 2009
Monday, May 18, 2009
Will restricting of H-1B hurt US economy?
Asserting that "handcuffing" employers from hiring talented workers will hurt the US economy, two experts have criticised proposals
to limit hiring of holders of H-1B visas coveted by Indian technocrats as "misguided."
"In order to grow the American economy and support the American workforce, Congress should expand and improve the H-1B visa programme," said James Sherk and Diem Nguyen.
As adding regulations to the H-1B programme would be a serious setback to US visa policy and would only end up hurting the US economy, the Congress should instead raise the cap from the current 65,000 to the 2001 quota of 195,000 visas a year, they said.
Sherk is a fellow in labour policy and Nguyen is a research assistant for foreign policy studies at The Heritage Foundation, a Washington think tank.
Referring to reports that two senators, Republican Chuck Grassley and Democrat Dick Durbin plan to introduce a bill that would limit the ability of companies to hire H-1B employees, the experts said an argument that H-1B visa recipients are a threat to American workers is "misguided."
"Given the current economic climate, handcuffing employers from hiring talented workers will hurt-not help-the economy, further delaying the ability of businesses to restart the national economic engine," Sherk and Nguyen said.
Many believe H-1B workers merely compete with Americans looking for work, the duo said. But "They are wrong. The US workforce is not a 'zero-sum game’, " they said.
"One hired H-1B worker does not mean an American is out of a job. In fact, the National Foundation for American Policy found that employers hired four new American workers for each new H-1B employee they hire."
Additionally, hiring H-1B employees does not lower the wages of American workers. Current law requires that when employers apply for H-1B visas
, they must attest that they will pay the visa recipient the same wage they would pay an American with similar skill sets.
Rather than limiting the ability of employers to hire H-1B workers by adding more rules and restrictions, Congress should ensure the federal government exercises appropriate oversight in enforcing current laws, Sherk and Nguyen said.
Preventing companies from hiring foreign workers harms the US economy's ability to rapidly adapt to marketplace demands, they said suggesting, "Companies must be able to hire persons best suited to fill positions based on their skill sets-not their nationality."
Agencies
to limit hiring of holders of H-1B visas coveted by Indian technocrats as "misguided."
"In order to grow the American economy and support the American workforce, Congress should expand and improve the H-1B visa programme," said James Sherk and Diem Nguyen.
As adding regulations to the H-1B programme would be a serious setback to US visa policy and would only end up hurting the US economy, the Congress should instead raise the cap from the current 65,000 to the 2001 quota of 195,000 visas a year, they said.
Sherk is a fellow in labour policy and Nguyen is a research assistant for foreign policy studies at The Heritage Foundation, a Washington think tank.
Referring to reports that two senators, Republican Chuck Grassley and Democrat Dick Durbin plan to introduce a bill that would limit the ability of companies to hire H-1B employees, the experts said an argument that H-1B visa recipients are a threat to American workers is "misguided."
"Given the current economic climate, handcuffing employers from hiring talented workers will hurt-not help-the economy, further delaying the ability of businesses to restart the national economic engine," Sherk and Nguyen said.
Many believe H-1B workers merely compete with Americans looking for work, the duo said. But "They are wrong. The US workforce is not a 'zero-sum game’, " they said.
"One hired H-1B worker does not mean an American is out of a job. In fact, the National Foundation for American Policy found that employers hired four new American workers for each new H-1B employee they hire."
Additionally, hiring H-1B employees does not lower the wages of American workers. Current law requires that when employers apply for H-1B visas
, they must attest that they will pay the visa recipient the same wage they would pay an American with similar skill sets.
Rather than limiting the ability of employers to hire H-1B workers by adding more rules and restrictions, Congress should ensure the federal government exercises appropriate oversight in enforcing current laws, Sherk and Nguyen said.
Preventing companies from hiring foreign workers harms the US economy's ability to rapidly adapt to marketplace demands, they said suggesting, "Companies must be able to hire persons best suited to fill positions based on their skill sets-not their nationality."
Agencies
Thursday, February 19, 2009
Oil near $35 amid grim US economic news
Oil prices rose slightly to above $35 a barrel on Thursday in Asia despite grim U.S. economic news that pointed to a deep recession and weaker crude demand.
Light, sweet crude for March delivery rose 54 cents to $35.18 a barrel by late afternoon in Singapore on the New York Mercantile Exchange. The contract on Wednesday fell 31 cents to settle at $34.62.
The March contract expires on Friday, and traders switched their focus to the April contract, which rose 62 cents to $38.03.
The Federal Reserve on Wednesday confirmed what many investors already suspected _ that the US economy has significantly deteriorated in the last few months.
The Fed said it expects the economy will contract between 0.5 and 1.3 per cent this year. Its previous forecast from November had a 0.2 per cent contraction as the worst case scenario.
The Fed also said the unemployment rate will likely rise to between 8.5 and 8.8 per cent this year, higher than its previous forecast of between 7.1 and 7.6 per cent.
The current global economic slump began in 2007 with a crisis in the US sub-prime mortgage sector, and the housing market continues to buckle under the weight of surging foreclosures.
A report from the Commerce Department on Wednesday said construction of new homes and apartments plunged 16.8 per cent in January from the previous month, to a seasonally adjusted annual rate of 466,000 units, a record low.
``The housing data suggests the recession is even worse than we thought,'' said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. ``We need to see the housing market stabilize because consumer sentiment is very much correlated to it.''
Investors are skeptical that a $787 billion stimulus bill signed this week by President Barack Obama will spark a quick recovery. The White House on Wednesday said the government will spend $75 billion to help prevent millions of Americans from losing their homes.
Crude investors are also concerned a jump in oil inventories is reflecting a steep drop-off in demand.
Analysts expect crude stocks will grow by 3.5 million barrels when the Energy Department releases inventory data for the week ended Feb. 13, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories have risen more than 30 million barrels in the last six weeks.
``Inventories are the focus now,'' said Moltke-Leth. ``If they rise again, it will put more downward pressure on crude.''
The Organization of Petroleum Exporting Countries has struggled to bolster prices as output cuts fail to keep up with falling demand.
Venezuelan Oil Minister Rafael Ramirez said Wednesday the group may cut production again at a meeting on March 15, on top of the reduction of 4.2 million barrels a day announced since September. Ramirez said the 13-member cartel would like prices to rise to $70 a barrel.
``OPEC is looking very weak right now,'' said Moltke-Leth said. ``There's a lot of chatter from them, but the market isn't really listening.''
Moltke-Leth said prices will likely fall to about $32 a barrel, which would test the 10-year average price.
``$32 and a half is a significant line in the sand,'' he said. ``It's a key support level, and I expect the market to test how strong it is.''
In other Nymex trading, gasoline futures rose 0.83 cent to $1.07 a gallon. Heating oil gained 1.71 cents to $1.16 a gallon, while natural gas for March delivery jumped 3.0 cents to $4.24 per 1,000 cubic feet.
In London, the March Brent contract rose 98 cents to $40.54 on the ICE Futures exchange.
Agencies
Light, sweet crude for March delivery rose 54 cents to $35.18 a barrel by late afternoon in Singapore on the New York Mercantile Exchange. The contract on Wednesday fell 31 cents to settle at $34.62.
The March contract expires on Friday, and traders switched their focus to the April contract, which rose 62 cents to $38.03.
The Federal Reserve on Wednesday confirmed what many investors already suspected _ that the US economy has significantly deteriorated in the last few months.
The Fed said it expects the economy will contract between 0.5 and 1.3 per cent this year. Its previous forecast from November had a 0.2 per cent contraction as the worst case scenario.
The Fed also said the unemployment rate will likely rise to between 8.5 and 8.8 per cent this year, higher than its previous forecast of between 7.1 and 7.6 per cent.
The current global economic slump began in 2007 with a crisis in the US sub-prime mortgage sector, and the housing market continues to buckle under the weight of surging foreclosures.
A report from the Commerce Department on Wednesday said construction of new homes and apartments plunged 16.8 per cent in January from the previous month, to a seasonally adjusted annual rate of 466,000 units, a record low.
``The housing data suggests the recession is even worse than we thought,'' said Christoffer Moltke-Leth, head of sales trading for Saxo Capital Markets in Singapore. ``We need to see the housing market stabilize because consumer sentiment is very much correlated to it.''
Investors are skeptical that a $787 billion stimulus bill signed this week by President Barack Obama will spark a quick recovery. The White House on Wednesday said the government will spend $75 billion to help prevent millions of Americans from losing their homes.
Crude investors are also concerned a jump in oil inventories is reflecting a steep drop-off in demand.
Analysts expect crude stocks will grow by 3.5 million barrels when the Energy Department releases inventory data for the week ended Feb. 13, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories have risen more than 30 million barrels in the last six weeks.
``Inventories are the focus now,'' said Moltke-Leth. ``If they rise again, it will put more downward pressure on crude.''
The Organization of Petroleum Exporting Countries has struggled to bolster prices as output cuts fail to keep up with falling demand.
Venezuelan Oil Minister Rafael Ramirez said Wednesday the group may cut production again at a meeting on March 15, on top of the reduction of 4.2 million barrels a day announced since September. Ramirez said the 13-member cartel would like prices to rise to $70 a barrel.
``OPEC is looking very weak right now,'' said Moltke-Leth said. ``There's a lot of chatter from them, but the market isn't really listening.''
Moltke-Leth said prices will likely fall to about $32 a barrel, which would test the 10-year average price.
``$32 and a half is a significant line in the sand,'' he said. ``It's a key support level, and I expect the market to test how strong it is.''
In other Nymex trading, gasoline futures rose 0.83 cent to $1.07 a gallon. Heating oil gained 1.71 cents to $1.16 a gallon, while natural gas for March delivery jumped 3.0 cents to $4.24 per 1,000 cubic feet.
In London, the March Brent contract rose 98 cents to $40.54 on the ICE Futures exchange.
Agencies
Tuesday, November 11, 2008
IT industry in India safe, says Nasscom chief
We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position, said Ganesh Natarajan, chairman of Nasscom.
India's IT industry does not need to worry about the current economic downturn as 'we have a strong knowledge base' and the established market players here would not be affected, a top industry body official said. "We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position," said Ganesh Natarajan, chairman of the National Association of Software and Services Companies (Nasscom).
Addressing a chief executives' meeting here, he said despite the global meltdown, the Indian software business is growing at the rate of 21-24 percent every year. He, however, urged the IT industry leaders to look beyond the US market. "Plenty of opportunities are available in Latin America, Japan, China, Europe and also in some African nations," Natarajan said.
"By 2020, India can alone fulfil the need of technical talent of the whole world. By that time the whole world would need 43 billion technocrats while India will have 47 billion surplus technocrats," he said.
He added that huge investments have to be made to train the available talent. According to Natarajan, the estate and retail business would feel the heat of the economic downturn. "But our IT sector is safe and would continue to grow," he said.
India's IT industry does not need to worry about the current economic downturn as 'we have a strong knowledge base' and the established market players here would not be affected, a top industry body official said. "We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position," said Ganesh Natarajan, chairman of the National Association of Software and Services Companies (Nasscom).
Addressing a chief executives' meeting here, he said despite the global meltdown, the Indian software business is growing at the rate of 21-24 percent every year. He, however, urged the IT industry leaders to look beyond the US market. "Plenty of opportunities are available in Latin America, Japan, China, Europe and also in some African nations," Natarajan said.
"By 2020, India can alone fulfil the need of technical talent of the whole world. By that time the whole world would need 43 billion technocrats while India will have 47 billion surplus technocrats," he said.
He added that huge investments have to be made to train the available talent. According to Natarajan, the estate and retail business would feel the heat of the economic downturn. "But our IT sector is safe and would continue to grow," he said.
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