loading

how lower gold and oil prices affect india

by:Rocket PCB     2019-11-12
Lower ticket prices, cheaper food and rising profit margins are among the benefits of falling oil prices and commodity prices.
But only after a long preparation time.
Many investors have invested $400 billion in commodities over the past decade and are now selling.
As the global economy fails to respond to the stimulus, their higher confidence that risky assets can only be in the rising tide of cheap central bank currencies has collapsed.
Even China, an important buyer of natural resources, is slowing.
In particular, the inflation rate of gold as a classic hedge tool is falling almost everywhere.
If natural resources continue to decline, price pressures will further ease.
This is bad news for exporters like Saudi Arabia and Brazil, but good news for net importers.
Han Derong, economist at abn amro, said weak commodity prices should be positive for the World Economic average, as falling inflation supports consumer spending.
The S & P Goldman Sachs Commodity Index fell 6.
So far this year has reached 6 percentage points.
But raw materials are only a small part of the cost of most companies, so it is not surprising that some companies, especially those in very competitive markets, have not been carried out.
\"There are thousands of parts in a car, so the impact may not be that big,\" said Cui Liyan of Great Wall Motor Co. , Ltd. , China\'s largest suv and pickup truck maker. up trucks.
\"In the past, when commodity prices soared, the Great Wall never passed on additional costs to consumers. \"For a U. S.
The economy is growing slowly and cheaper energy is positive, said Michael Ward, chief executive of CSX.
The biggest railway
But the CSX itself is not concerned because it is running the fuel surcharge plan.
\"Over time, we pass on the increase or decrease in fuel to our customers,\" Ward said . \".
An official at CJ CheilJedang Corp. , South Korea\'s largest food producer, said it usually takes four to six months before the decline in agricultural futures prices will affect the Company\'s products.
Cracks in gold, including the sharpest
Monday\'s 30-year decline drew attention, but the fall in oil prices had a much greater impact on the economy.
Brent crude fell about $119 from last year\'s high.
17, 2 months and 8 days.
Economists at JP Morgan estimate that oil prices fell by 15 percentage points due to increased supply, enough to raise global economic output by 0 this year.
2 percentage points.
But if the fall in prices reflects a bleak economic outlook, the same 15-point decline is consistent with 0.
According to the bank, the outlook for global economic growth will be lowered by 5 percentage points this year.
A senior executive at Indian engineering firm Larsen & Toubro said the general fall in commodity prices was two-way.
Cheaper materials, he said, will help profit margins and, if this trend continues, will increase the chances of lowering interest rates.
But there is a reason why prices are falling.
\"Due to the slowdown in the investment cycle and the slowdown in commodity demand, prices have declined today.
\"If this is in the long run, it\'s not a good thing for a project company like ours,\" he said . \".
The impact of the selling of goods is more complicated because it cannot be seen in isolation.
Thai PCB manufacturer KCE Electronics Pcl should sit beautifully as it uses a lot of copper and by 2013 the price of copper has fallen by 12 percentage points.
But executive director Panja Senadisai said the strength of the Thai baht against the US dollar exceeded savings, which hurt KCE\'s exports.
Tenneco Inc. \'s subsidiary in India has a similar situation: the auto parts maker thinks steel and rubber are cheaper
Rubber contracts on Tokyo\'s main commodities exchange fell more than 8% this week
But weakness in the rupee and high inflation have weakened that good.
JAL spokesman Taro Namba said the currency has also put Japan Airlines in trouble, and the depreciation of the yen is negative for the airline.
Nevertheless, JAL has announced 7.
From May 1-12, the cargo fuel surcharge will be reduced by 6 percentage points per kilogram.
International routes.
South Korea\'s largest airline, Air Korea, expects a drop in fuel surcharges to lead to a drop in ticket prices, one month behind.
Cheap food is a particularly good option in countries where inflation is high and disturbing.
Indonesia, for example, has nearly double inflationyear high of 5.
It took up nine in three months.
Due to the price drop of everything from rice to meat and scallions, this month-on-
The monthly increase in consumer prices may be less than 0.
According to deputy central bank governor Perry vojyo, 1 percentage point in April.
Business models are different and not everyone is eager to deliver cheaper inputs.
Danish shipping groupP. Moller -
The Maersk Group is an example.
\"Our job is to make sure that customers understand that they actually have a lot of value proposition by shipping with us. . .
Customers are willing to pay a little more.
This is not a commodity.
\"It\'s not just shipping a box,\" said chief executive Niles Anderson . \".
As global inflation is generally benign, the door to more monetary stimulus from major central banks has opened. St.
James Brad, chairman of the Federal Reserve, said he would be in favor of increasing the pace of Fed bond purchases if inflation continued to fall.
Falling commodity prices and slower wage growth give the Bank of England more room to restore bonds.
Martin Weale, the Bank of England\'s policy maker, believes that buying is to stimulate the economy.
Even the conservative European Central Bank has hinted that it is willing to do more.
Economists at the bank forecast inflation at just 1.
Interest rates in 2014 are well below their target of slightly below 2, and more economists expect to cut interest rates next month.
China has also increased policy space.
\"The fall in global commodity prices is clearly good news for China, as it will help ease inflationary pressures on imports, beijing has more room to expand credit and ease monetary policy to boost the domestic economy. \" Researcher, Chinese Academy of Social Sciences.
India, Asia\'s third largest economy
America\'s biggest economy hopes that a slump in commodity prices will not only curb inflation, but also reduce its double deficit.
Imports of crude oil and gold account for nearly 45 of India\'s total imports.
\"The decline will help us cope with the expanding current account deficit, which is the government\'s biggest concern,\" said a senior official at the New Delhi Ministry of Finance . \".
In the fiscal year ended, India spent $169 billion on foreign oil, nine percentage points higher than the previous year.
This is a big factor behind a complete
The annual current account deficit is likely to account for 5-
The central bank governor called it unsustainable.
With India heavily subsidizing consumption of fuel and fertilizer, the government\'s budget deficit in the new fiscal year is likely to be below target 4.
The official added that if global commodity prices continue to fall, they account for GDP.
Falling crude oil prices could halve the oil subsidy bill.
From the end of the commodities supermarket, Australia seems to be a clear losercycle.
The \"Lucky Country\" has experienced more than 20 years of uninterrupted growth, thanks in large part to mineral and energy exports to Asia.
Falling commodity prices and a stronger Australian dollar have forced financial director Wayne Swan to sharply lower expectations for taxes, especially for corporate revenue, and for large iron ore and
As a result, the government had to abandon its commitment to restore its budget surplus for the year ended June.
But Swan remains optimistic about growth prospects across Asia.
\"The growth of the middle class in Asia will generate demand for a range of goods and services, not just for resources, but for agriculture, he said: \"But in a variety of events, I think it will only be good for Australia. \".
Get live coverage and updates from India and around the world on NDTV. com.
Watch all live TV on NDTV 24x7 and on.
Like us, or follow us, find and update.
Custom message
Chat Online
Chat Online
Leave Your Message inputting...
Thank you for your attention. Please kindly describe your question first, or please send your inquiry to our email sales@rocket-pcb.com, and we will reply to you ASAP. Welcome, what can I help you?
Sign in with: