News Weeed Weekly (30Jul-03 Aug)

News

US Stocks rose for a fourth week on better than forecasted jobs data with the S&P 500 and the Dow Jones rising slightly by 0.4% and 0.2% respectively. European markets also rose on US optimism despite negative sentiments locally, the Stoxx 600 index rallying 2.2% for the week. Asia’s MSCI Asia Pacific Index rose slightly by 0.9%, dropping from higher gains earlier in the week as hopes of European, US and Chinese stimulus measures failed to materialize. Brent crude rose 2.3% and WTI crude rose 1.95% due to escalating geopolitical conditions and positive US jobs data.

Views

Why did India suffer that massive crash in power supply? Corruption, inefficiency and even bad weather conditions all had a role to play, relevant to Sri Lanka in the light if its own recent power problems.

Not a week after the ECB president’s reassuring comments Spanish Bonds crashed again, this time drastically.

China is facing some unexpected BOP trouble due to an increase in Yuan in its system. This in turn is creating a problem in its stimulus plan causing pessimism about its economic prospects to deepen.

A study looks at India’s ‘transfer raj’ or the phenomenon of the mass shuffling and changing of bureaucrats every time a political change occurs; in no way unfamiliar to Sri Lanka.

Capitalism has ‘image problems’ in the US, mainly because of cronyism, state collusion and financial speculation. Relevant to Sri Lanka as it too struggles through much of the same issues in an economic model largely identified as capitalist.

This article argues that ‘peak oil’ as a concept is dead. As more oil reserves become easier to extract as technology improves.

The Economist’s latest Big Mac Index gives interesting perspectives on the relative values of global currencies, in the aftermath of a global ‘currency war’ of sorts.

Economists provide insights into which factors help make countries successful in their bids for Olympic glory.

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