Tag Archives: ECONOMY

Chinese tech giants stocks remain industry-leading

Despite increased pressure from Chinese regulators on the country’s largest technology companies Alibaba and Tencent, their shares remain leading in the Chinese industry. This is reported by the publication PaySpace Magazine, referring to the opinions of experts.

Increased interest in these companies from government agencies slightly reduced the value of their shares in the previous few days, which led to a decline in the securities of other representatives of this area of the Chinese economy.

The quotes of the leading Internet companies in China are also negatively affected by the information that their shares may be excluded from the US stock indexes if they do not provide the necessary reports on the state of their finances to US regulators.

However, even all these factors, which have a negative effect on the securities of Alibaba and Tencent, could not reduce their leading role in the Chinese technology industry.

The price of shares on world exchanges has exceeded the entire GDP of the planet

As of the end of March, the total price of shares on the world’s stock exchanges reached a record amount in the entire history of finance — approximately $106 trillion. It has increased over the past year by approximately 60 percentage points. As a result, the aggregate share price already exceeds the gross domestic product (GDP) of the planet ($83.8 trillion in 2020).

This is the conclusion reached by analysts of the Japanese business newspaper Nikkei. In their opinion, such numbers create a feeling of a dangerously overheated market.

Of the aggregate share price of $106 trillion, $45 trillion falls on the US stock exchanges. Shares there in the year to the end of March rose by about 70 p.p. largely due to the easing of fiscal policy in the United States and large budgetary injections designed to revive the economy in the context of the pandemic, the newspaper said.

By the way, the American S&P 500 index for the first time in history crossed the 4000 point mark. As a result of trading, the S&P 500 climbed 46.98 points to 4019.87 points, the Wall Street Journal reported.

According to Japanese experts, the global rise in share prices is associated with the flow of investors’ funds to the stock markets, who are waiting for an increase in profits against the background of overcoming the pandemic and recovering the world economy.

What are the chances of the EU’s New Green Deal?

According to the plans of the European Commission, the package of measures taken to overcome the coronavirus crisis should be based on a New Green Deal. At the same time, Brussels is betting on an initiative called the “New European Bauhaus”. The aim of the project is to promote such principles and values as quality design, environmental sustainability, barrier-free operation, and investment. Meanwhile, negotiations on a new climate law due to be passed this spring have stalled. Observers are concerned about how the situation is developing.

Don’t miss at least this train

The European Union has a unique chance to catch up on the world stage, “ writes El Pais:

“In the digital race, the 27 EU countries have long been behind the US and China, but in the green race, they may well give others a head start. Eight of the ten most important companies in the field of clean energy are European. Europe must not miss this train! At stake are energy independence, the creation of many jobs, and control over technology of global significance. In addition, leadership in the field of green technologies can help the EU strengthen its image of moral authority, and this is worth a lot. Authority is imperceptible physically, but its significance is extremely great.”

Poland needs a change of course

Poland should switch from coal to renewable energy sources as soon as possible, — Rzeczpospolita insists:

“We are heading for a collision course, but we still have time for rescue maneuvers. If we miss this opportunity, we face an economic catastrophe. Rising energy prices will lead to the ruin of Polish companies and enterprises, which have already suffered from numerous lockdowns. Therefore, the economic recovery plan and the implementation of the New Green Deal in Poland should focus on green technologies. Otherwise, the Polish economy is unlikely to benefit significantly from the funds allocated by the European Union. After all, those who rely on alternative energy sources will receive the most funding.”

Results can only be achieved together

The new Green Deal should cover all EU countries, warns Rzeczpospolita:

“The idea of Ursula von der Leyen should not be limited to a group of selected countries — or a certain ‘elite’. Walter Gropius, the ideologues of the Bauhaus, said that his school should serve people — and be universal. And why this dream is not feasible if someone is deliberately excluded from it. The new Bauhaus should be built jointly by all EU countries. Including Poland, a European country with a viable industry and crafts.”

The course leading to a collision with the United States

EU plans will not strengthen relations with the US, warns The Spectator:

“President Joe Biden’s program idea is to promote green energy, focused on the production of renewable and clean electricity. … The EU has almost the same agenda: most of the fund for economic recovery from the consequences of the corona crisis in the amount of 750 billion euros is planned to be directed to this area. However, there cannot be two global leaders in the field of green energy! Competition for leadership in this area is likely to further alienate the parties from each other.”

In the USA, they are working to strengthen the protection of power grids from cyber attacks

The administration of US President Joe Biden is developing a new plan to protect the country’s electricity sector from cyber attacks, Bloomberg reports, citing sources.

According to the agency’s interlocutors, Deputy Assistant to the US President for National Security Ann Nyberger and the country’s Energy Minister Jennifer Granholm discussed this issue with industry representatives on March 16. The plan includes a new strategy for cooperation with companies to prevent hacking. It is noted that in the coming weeks it will be presented.

According to the report, the US authorities decided to start with the power grid, as they are important for the economy of the United States. In addition, it indicates that they decided so in connection with the increased attacks on these networks, which are carried out by foreign hackers.

Earlier, the US corporation Microsoft reported the discovery of four critical zero-day vulnerabilities in its messaging service. According to the company, the security gaps found have already been exploited by a professional group of hackers from China — Hafnium, who attacked a number of US departments, organizations, universities, government contractors, NGOs, and analytical centers in order to steal classified data.

Before that, it became known that an unknown hacker tried to poison a city in the United States by hacking a water treatment plant.

IMF forecasts a rapid global economic recovery in 2021

The IMF’s Jeffrey Okamoto said that the global economy may show a higher growth rate this year than previously expected. Mass vaccination of the population, which is carried out in many countries, as well as budget incentives, will help to increase economic activity.

In the January forecast of the IMF, the global economy was expected to grow by 5.5% by the end of 2021. However, its prospects have improved recently, and a more significant growth rate can be expected.

At the same time, Jeffrey Okamoto noted that despite the positive changes, GDP in many countries is still below the indicators that were observed before the crisis caused by the spread of the coronavirus.

To date, only China’s economy shows pre-crisis growth rates. For the rest of the world, the IMF is concerned about the widening recovery gap between developed and developing countries.

The fund plans to publish a new forecast on the development of the situation in the global economy at the beginning of next month.