NewsCase StudiesEvents

World Market Jeopardy Overshadows Presidential Inauguration

Also in the news...

Business Set Up in Russia

In our third video you will learn what kind of legal assistance is usually required when setting up business, whether there are any limitations of doing business in Russia without establishing a legal presence and what is required in order to register an LLC in Russia.

Britain’s Ł4 billion car part kitty fuels growth opportunities for Indian businesses

British auto manufacturers are in the market for new car part suppliers to service the growing demand for UK automobiles.

Entering into ecommerce Abroad

With a huge domestic market, a world-famous business reputations,

U.S Department of Labor to announce new overtime rule by summer

The Department of Labor is proposing a rule that could benefit almost five million workers in the first year. The rule would allow workers earning less than $50,440 a year to be guaranteed overtime pay, if they work more than 40 hours. The current threshold is $23,660.

Budgeting for 2016 HR Cost

When HR departments plan for the HR cost of 2016, they should consider the following issues:

World Market Jeopardy Overshadows Presidential Inauguration

Back to News

In an ironic contrast to the biggest ever presidential celebrations, America saw its bleakest ever reading for an inauguration day, with the Dow Jones plunging by 4%.

Last Wednesday saw a drop in the world stock markets, generating fears that escalating bank loses will paralyse the global economy. The news lingered over the inauguration of Barack Obama like a slick thundercloud of realisation.

Worrying news that Western banks, such as Lloyds and Royal Bank of Scotland, are in irreparable jeopardy sent stock measures falling by over 4%. Optimism seemed delusional as Barack Obama made his inauguration speech promising to rebuild a broken United States. Investors, however, appeared more rational. They speculate that, regardless of good intentions, the new President simply wonÂ’t be able to offer a stimulus package effective enough to quickly save the American economy, let alone the rest of the world.

JapanÂ’s benchmark lost 2% in last Wednesday's remarkable drop in the market. Singapore, also, has cut its growth forecast for the year for a second time this month, stating that its economy is in danger of a 5% declination. Along with Japan and Hong Kong, Singapore is also suffering from recessional rigor mortis, with demand for exports abating.

The forecasts are especially hoary. BHP Billiton, the worldÂ’s biggest mining business based in Australia, revealed its intentions to cut 6,000 jobs (6% of employees worldwide) to align itself with current demand. Likewise, China-based insurance giant China Life speculated 2008 profits to be down 50% by that of 2007.

JapanÂ’s Nikkei 225 stock buoyancy sank 164.15 points (2%), whereas Hong KongÂ’s Seng Index suffered a 381.19 point drop (2.9%). Australia lost 1%, India 2% and Singapore 1.6%. Here in the West, however, the British FTSE was down 1.8%, the German DAX 2.2% and FranceÂ’s CAC-40 2.7%.

And finally, in an ironic contrast to the biggest ever presidential celebrations, America saw its bleakest ever reading for an inauguration day, with the Dow Jones plunging by 4%.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.