Business

Asian markets fall as inflation spike fans rate fears

Published

2 years ago

12/03/2022

MNN

The ongoing Russian offensive against Ukraine coupled with the US inflation hitting a 40-year high fuelled selling in the Asian markets.

Asian markets have mostly dropped as traders resumed their Ukraine-fuelled selling after the previous day’s bounce, with data showing US inflation at a 40-year high adding pressure on the Federal Reserve to ramp up interest rates.

Bets on a more aggressive approach by the Fed to rein in runaway prices added to nervousness on trading floors on Friday, while the failure of high-level talks between Moscow and Kiev to de-escalate the war also helped torpedo a brief rebound in equities.

However, while oil rose it was well off the 14-year highs touched at the start of the week as governments embark on a diplomatic push to replace the output erased by strict sanctions and an embargo on Russian exports.

While the war in eastern Europe continues to rage, investor focus turned to the release Thursday of figures showing US inflation hit 7.9 percent in February, the highest since January 1982.

The reading comes just ahead of the Fed’s next policy meeting, where it is expected to announce the first of what could be up to seven interest rate hikes this year.

While a phase of tightening is certain, speculation has been rife about how many and how steep the rises will be.

Rising food, fuel, shelter prices

The war has given officials an extra headache as the surge in oil markets will add upward pressure to consumer prices, though the bank must tread a fine line between fighting inflation and trying to prevent a recession.

“The headline print was a 40-year high, reflecting higher gasoline, food and shelter costs. And now with energy prices on the rise following Russia’s invasion of Ukraine and sanctions, expectations are for inflation to rise even more,” said National Australia Bank’s Rodrigo Catril.

The “net takeaway is that US inflationary pressures are proving to be more persistent and expansive, increasing the pressure on the Fed to lift the funds rate and cool the economy”.

US Treasury Secretary Janet Yellen admitted rising prices were a problem and annual inflation would probably “remain very uncomfortably high”.

Also on Thursday the European Central Bank hiked its inflation forecast for the year and slashed its economic growth outlook while taking a more hawkish stance on policy.

All three US indexes ended in the red, having enjoyed a strong burst higher the day before and Asia followed suit after its own advance on Thursday, though early losses were pared or reversed in some places.

Tokyo lost more than two percent, while Hong Kong slipped 1.8 percent with Sydney, Seoul, Taipei, Manila, Jakarta, Mumbai, Kuala Lumpur and Wellington also in the red.

But Shanghai, Bangkok and Singapore squeezed out gains, while London, Paris and Frankfurt opened higher.

Source: TRT

Business

Maldives records USD 802.2 million in first four months

Published

13 hours ago

19/05/2024

The Ministry of Finance has disclosed that the state received USD 802.2 million in revenue during the first four months of this year, marking a significant 4.2% increase compared to the same period last year.

This revenue breakdown comprises USD 660 million in tax revenue, USD 129.4 million in non-tax revenue, and USD 5 million in aid to administration.

Tax revenue is primarily derived from Import Duty, Business and Property Tax (BPT), and Goods and Service Tax (GST), with figures as follows:

– Import Duty: USD 60.3 million
– BPT: USD 168.2 million
– GST: USD 375.2 million
– Green Tax: USD 27 million
– Airport Service Charge and Departure Tax: USD 25.1 million

Moreover, financial data indicates that the current administration has notably reduced overall expenses compared to the previous year.

Total government expenditures for the first four months of this year stand at USD 925.1 million, a significant decrease from last year’s USD 1.04 billion. This includes USD 724.6 million in recurrent expenses and USD 194.1 million in capital expenditure. Recurrent expenses prominently consist of USD 284.7 million in salaries and allowances and USD 433.4 million in administrative expenses, while capital expenditures primarily involve infrastructural development projects.

Source(s): PsmNews

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

3 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

1 week ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews