The Congress party has criticized Prime Minister Narendra Modi’s remarks about “redistribution of wealth” and accused him of resorting to lies and hate speech. The party claims that over 40% of the wealth created in India from 2012 to 2021 went to just 1% of the population, while most of the public assets sold in the last ten years have gone to one or two companies. The Congress asserts that only an INDIA bloc government can deliver more inclusive economic growth.
Japan’s manufacturing activity improved, nearing stability in April, while the services sector expanded at its fastest pace in 11 months. The manufacturing PMI rose to 49.9, indicating a slowdown in the contractionary trend but still marking the eleventh straight month of decline. However, the pace of decline moderated as output and new orders shrank less sharply, and new export orders fell at a slower rate. In contrast, the services PMI climbed to 54.6, marking 20 consecutive months of growth and the strongest expansion since May 2023. New orders in the service sector rose at the fastest pace in 10 months, with overseas orders showing a further increase. The composite PMI also improved to 52.6, signaling the fourth straight month of growth in private sector activity at the strongest pace since August 2023. Investors are watching the upcoming Bank of Japan policy decision closely.
South Korea’s economy grew by an estimated 0.6% in the first quarter of 2023, maintaining the pace of expansion from the previous quarter. This growth was primarily driven by strong exports, which offset a slowdown in household consumption. The trade-dependent economy benefited from a resurgence in semiconductor exports, a positive indicator for global trade. On a year-on-year basis, GDP is projected to have expanded by 2.4%, the fastest growth rate since Q3 2022. However, potential economic headwinds include uneven growth in China and the impact of interest rate hikes on consumer spending.
Japan’s manufacturing sector is showing signs of recovery, as indicated by a business survey on Tuesday. The au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) rose to 49.9 in April, nearing the break-even level of 50.0 that separates growth from contraction. While still below the threshold, it marks the closest the index has come to expansion since June. The service sector remains robust, with the au Jibun Bank flash services PMI rising to 54.6 in April, its highest level since May 2022. This acceleration in growth suggests that the service sector is the primary driver of the Japanese economy, which is the world’s fourth largest.
Key findings from the Judo Bank S&P Global PMI Flash / Preliminary for April 2024 indicate ongoing inflation pressures and insights on the Reserve Bank of Australia’s (RBA) outlook. The report highlights the persistence of inflationary pressures and the challenges faced by businesses in managing these pressures.
Vanguard, a leading asset manager, anticipates less aggressive rate cuts from the Federal Reserve. The firm predicts a “deferred landing” for the US economy, characterized by ongoing growth and persistent inflation above the target. Vanguard also cautions against potential fiscal extravagance.
Goldman Sachs recommends investing in companies that allocate significant resources to capital expenditures (capex) and research and development (R&D). According to the bank, these companies have outperformed those focusing on shareholder returns through buybacks and dividends by 2 percentage points this year. Goldman highlights the positive economic outlook, citing rebounding global manufacturing data. Historically, investors have rewarded companies investing in growth during periods of economic acceleration.
Poland’s industrial output fell sharply in March 2024 due to a significant decline in coal mining, raising concerns about the country’s economic growth prospects. Coal mining output plunged by 25.9% year-over-year, contributing to a 6% decline in industrial production. This steep drop cast doubt on expectations of a 3% economic rebound in Poland this year.
Detroit, once a city facing challenges, is now flourishing with economic growth and NFL success. The city has secured the prestigious NFL Draft, which will be hosted in the heart of downtown from April 25th onwards. With 300,000 registered attendees and projections of up to 500,000 fans, the Draft is a testament to Detroit’s resurgence. Detroit native and billionaire Dan Gilbert, who spearheaded the bid, sees it as a victory in the city’s long-standing renaissance. The Draft will take place in Campus Martius Park and Hart Plaza, surrounded by the city’s iconic skyline and riverfront, showcasing Detroit’s unique charm.
India’s economy faces significant challenges related to income inequality, lack of demand, insufficient workforce, and regional disparities. To address these deficiencies, the government has implemented various welfare programs and is pursuing trade agreements and subsidies to boost exports. However, sustainable economic growth requires reforms in labor and land regulations, investment in infrastructure and education, and measures to increase female labor force participation.
