Capital outflows from developing markets were higher than it was anticipated last year, according to a report by Institute of International Finance. The reason behind this oceanic change in emerging markets cash flow is China, which dragged out 676 billion US dollar.
Investors
Overseas central banks are Fed's partner to accomplish rates
The Federal Reserve Bank have found a new partner in its struggle to confirm interest rate increase screens through the US economy. The trend of Fed borrowing billions daily to set a base under its standard policy rate has been conquered by foreign monetary authorities, Bloomberg said.
AmEx to slash cost by $1bn by 2017
Feeling the heat of competition in the global payments industry, American Express (AmEx) is in the process of reducing costs by $1billion by end of 2017. AmEx posted losses for the fourth quarter consecutively. The net income dropped from $1.44 billion to $873 million or 80 cents per share for the quarter. The forecast for this year disappointed investors and analysts.
Indian stock market at bear zone; Asian stocks gain
Despite economy growth rate of over seven percent, the Indian stock markets are suffering from the selloff by foreign investors. The domestic stock markets may enter bear territory soon after the fall in Shanghai and Tokyo markets. The cash-strapped foreign investors are offloading in Indian stocks since November 2015. On the other hand, Asian stocks gaining momentum following the marginal rebound in oil price.
Copper prices dancing to the tunes of China
The stockpiles levels in China, the biggest commodity consumer, are impacting copper prices in the global markets. Copper price is hovering at $4,400 per metric ton and is moving in consolidation phase. Chinese smelters may cut down output and stop increasing capacities this year.
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Vietnam warned China against drilling an oil rig in borderline waters in the South China Sea. Vietnam's anxiety over the rig develops subsequent to a recent flight testing carried out by China on a fake island in Spratly archipelago.
Greatist has raised 4.5 million US dollar in Series A round. The company will utilize the funds to add more staffs, on the advertising department, to create additional custom programs like events and original content, according to Derek Flanzraich, CEO of Greatist.
South Korean currency Won has been volatile as it hit five-year low and recovered marginally. Won was tracking to Chinese currency Yuan as the dragon country is the major foreign market for South Korea. China's GDP rose 6.8 percent during fourth quarter marginally lower than the forecast of 6.9 percent. This disappointed the market.
Cocoon Networks, a Chinese-backed venture capital group is setting up a £500 ($700) million fund in London. The fund is aimed to invest in European tech startups.
The Indian currency Rupee against the US dollar rose to highest since November 2015 on increasing outflows from Indian stocks and bonds. The Chinese markets were witnessing selloff and this also resulted in further withdrawal by foreign investors in Indian markets. The net outflow from Indian markets in January so far was at $686.2 million putting more pressure on currency reserves.
China, as part of a wider drive into progressive industries to boost its GDP growth, plans to combine over 40 entities to work on the giant $22 billion plane-engine project. Under the plan, the government of China along with companies like Aviation Industry Corp. would invest 35 billion yuan.
Chevron said that its subsidiaries in Australia have entered into a non-binding Heads of Agreement with ENN LNG Trading Co. Ltd to sell liquefied natural gas to China. The delivery of LNG will be commenced in the first six-month of 2019, according to the company.
China grew 6.9 percent in 2015 indicating the slowest growth rate in 25 years. The growth rate was 6.8 for the fourth quarter of 2015. The world's second largest country recorded 7.3 percent growth rate in 2014. Investors are cautious about the impact of slowdown in China's economy. IMF forecasts China's economy growth rate at 6.3 percent in 2016 and six percent in 2017. Chinese government has set a target of seven percent growth for 2016.
Saudi Arabia oil minister Ali al-Naimi said that stability in the oil market will be attained only through the cooperation amid major manufacturers and this would take time. Ali al-Naimi added that although the worldwide oil market has been experiencing an instability for over 12 months, he is hopeful regarding the return and future of the oil market.
