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Thursday, August 16, 2012
EPSILON MANAGEMENT CAPITAL: Epsilon Capital Management’s First Quarter Asia Pa...
EPSILON MANAGEMENT CAPITAL: Epsilon Capital Management’s First Quarter Asia Pa...: http://www.prlog.org/11881051-epsilon-capital-managements-first-quarter-asia-pacific-emerging-economic-round-up.html India’s GDP for the...
Epsilon Capital Management’s First Quarter Asia Pacific (Emerging) Economic Round Up
http://www.prlog.org/11881051-epsilon-capital-managements-first-quarter-asia-pacific-emerging-economic-round-up.html
India’s GDP for the three months ended December 2011 grew at 6.1%, the slowest pace in nearly eight quarters. The slowdown in GDP comes amidst the backdrop of high inflation, slowing investments,
and faltering demand from developed markets. During this period, almost all legs of the economy encountered substantial challenges. While manufacturing output inched up just 0.4%, mining and farm
output declined substantially. A large fiscal deficit arising from high social sector spending and a spike in oil prices has been troubling India over the past year. Private economists surveyed by Bloomberg
estimate that India’s fiscal deficit will touch 6.1% of GDP for the year ending March 2012.
On the other hand, the pace of investment is slowing in Asia’s third largest economy. The investment-to-GDP ratio in the December quarter fell to 30% from nearly 34% in the year-ago period. Gross fixed
capital formation, which measures investments in roads and factories, declined 1.2% in the December 2011 quarter following a 4% fall in the previous quarter.
India’s central bank, meanwhile, is watching the inflation numbers in order to trim borrowing costs to boost growth. The central bank had raised interest rates by nearly 375 basis points since March 2010
to combat inflation. During its policy meetings in 2012, the central bank refrained from cutting rates but chose to reduce the cash reserve ratio. India’s inflation, which trended down a bit in late 2011
again showed signs of rising in February, during which month it jumped 6.95%.
In another note of weakness for India, the Purchasing Manager’s Index measured by HSBC, has consistently fallen over the past three months. After falling to 56.6 in February from 57.5 in January, the
reading fell to a low of 54.7 in March. HSBC reported that the dip in the figures was largely due to domestic factors like high input costs and supply side constraints like overcrowded ports and roads. India
is currently facing a shortfall of nearly 114 million metric tons of coal required to produce electricity and keep its factories running.
In our second part we will continue to look at the key remaining Asian Emerging Economies of South Korea, Indonesia, Thailand, The Philippines and Taiwan.
Epsilon Capital Management is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and
committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to
www.epsiloncapitalmanagement .com
Contact Email : ***@epsiloncapitalmanagement.com
Source : ECM - Public Relations
Phone : +41 225 087 241
Zip : CH-1024
City/Town : Geneva
State/Province : Geneva
Country : Switzerland
Industry : Business
Tags : epsilon capital management
Last Updated : May 22, 2012
Shortcut : http://prlog.org/11881051
India’s GDP for the three months ended December 2011 grew at 6.1%, the slowest pace in nearly eight quarters. The slowdown in GDP comes amidst the backdrop of high inflation, slowing investments,
and faltering demand from developed markets. During this period, almost all legs of the economy encountered substantial challenges. While manufacturing output inched up just 0.4%, mining and farm
output declined substantially. A large fiscal deficit arising from high social sector spending and a spike in oil prices has been troubling India over the past year. Private economists surveyed by Bloomberg
estimate that India’s fiscal deficit will touch 6.1% of GDP for the year ending March 2012.
On the other hand, the pace of investment is slowing in Asia’s third largest economy. The investment-to-GDP ratio in the December quarter fell to 30% from nearly 34% in the year-ago period. Gross fixed
capital formation, which measures investments in roads and factories, declined 1.2% in the December 2011 quarter following a 4% fall in the previous quarter.
India’s central bank, meanwhile, is watching the inflation numbers in order to trim borrowing costs to boost growth. The central bank had raised interest rates by nearly 375 basis points since March 2010
to combat inflation. During its policy meetings in 2012, the central bank refrained from cutting rates but chose to reduce the cash reserve ratio. India’s inflation, which trended down a bit in late 2011
again showed signs of rising in February, during which month it jumped 6.95%.
In another note of weakness for India, the Purchasing Manager’s Index measured by HSBC, has consistently fallen over the past three months. After falling to 56.6 in February from 57.5 in January, the
reading fell to a low of 54.7 in March. HSBC reported that the dip in the figures was largely due to domestic factors like high input costs and supply side constraints like overcrowded ports and roads. India
is currently facing a shortfall of nearly 114 million metric tons of coal required to produce electricity and keep its factories running.
In our second part we will continue to look at the key remaining Asian Emerging Economies of South Korea, Indonesia, Thailand, The Philippines and Taiwan.
Epsilon Capital Management is an independent investment advisory firm which focuses on global equities and options markets. Our analytical tools, screening techniques, rigorous research methods and
committed staff provide solid information to help our clients make the best possible investment decisions. All views, comments, statements and opinions are of the authors. For more information go to
www.epsiloncapitalmanagement .com
Contact Email : ***@epsiloncapitalmanagement.com
Source : ECM - Public Relations
Phone : +41 225 087 241
Zip : CH-1024
City/Town : Geneva
State/Province : Geneva
Country : Switzerland
Industry : Business
Tags : epsilon capital management
Last Updated : May 22, 2012
Shortcut : http://prlog.org/11881051
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