Hong Kong stocks stuck between a ‘rock and a hard place’ for 2019

Hong Kong stocks are closing out a rough year and the outlook for 2019 remains largely negative, according to analysts and investors. “I would say it’s between a rock and a hard place,” Hao Hong, managing director and head of research at BOCOM International in Hong Kong, told CNBC earlier this month about the outlook for the market. Hong Kong, a semi-autonomous former British colony over which Beijing resumed control in 1997, is a major trade and financial services hub vulnerable to the whims of


Hong Kong stocks are closing out a rough year and the outlook for 2019 remains largely negative, according to analysts and investors. “I would say it’s between a rock and a hard place,” Hao Hong, managing director and head of research at BOCOM International in Hong Kong, told CNBC earlier this month about the outlook for the market. Hong Kong, a semi-autonomous former British colony over which Beijing resumed control in 1997, is a major trade and financial services hub vulnerable to the whims of
Hong Kong stocks stuck between a ‘rock and a hard place’ for 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-15  Authors: kelly olsen
Keywords: news, cnbc, companies, place, vulnerable, outlook, 2019, market, stuck, trade, rock, hong, stocks, financial, hard, economy, china, growth, kong


Hong Kong stocks stuck between a 'rock and a hard place' for 2019

Hong Kong stocks are closing out a rough year and the outlook for 2019 remains largely negative, according to analysts and investors.

Headwinds from a weakening economy in China, the Beijing-Washington trade war, concerns about signs of emerging U.S. weakness and an expected slowdown in local initial public offerings after a banner 2018 are seen as likely to weigh on the market.

The benchmark Hang Seng Index closed Friday at 26,094.79, down about 13 percent for the year as the end of 2018 approaches. It has slumped some 22 percent from its peak of 33,484.08 on Jan. 29.

“I would say it’s between a rock and a hard place,” Hao Hong, managing director and head of research at BOCOM International in Hong Kong, told CNBC earlier this month about the outlook for the market.

Hong cited the expectation of a broad slowdown in China’s economy during the first half combined with volatility on Wall Street in the U.S., where less aggressive interest rate hikes by the Federal Reserve underscore worries growth in the world’s largest economy is waning.

Hong said the Hang Seng is clearly in the process of finding a bottom, but added: “I don’t think people should be hoping for a V-shaped rebound in the market.”

Hong Kong, a semi-autonomous former British colony over which Beijing resumed control in 1997, is a major trade and financial services hub vulnerable to the whims of larger economies, given its proximity to China and the Hong Kong dollar’s peg to the U.S. currency.

“Hong Kong … is vulnerable to further escalating U.S.-China trade tensions, possible disorderly tightening of global financial conditions, slower-than-expected growth in Mainland China, and a sharp housing market correction,” the International Monetary Fund said in a statement last week at the conclusion of regular consultations with local authorities.

Citi, in a report dated Dec. 5, said it expects Hong Kong banks to underperform the broader market next year as weak credit demand suppresses earnings and on concern over potential for capital outflows.

Ronald Wan, non-executive chairman at Partners Financial Holdings, suggested that a breakthrough in the tariff conflict in the form of China opening up key business sectors to meet U.S. demands is unlikely, while China’s economic growth is set to slow.

“I think the market will be even more challenging,” he said on Dec. 6 of next year’s outlook for Hong Kong.


Company: cnbc, Activity: cnbc, Date: 2018-12-15  Authors: kelly olsen
Keywords: news, cnbc, companies, place, vulnerable, outlook, 2019, market, stuck, trade, rock, hong, stocks, financial, hard, economy, china, growth, kong


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Lighthizer: 90 day pause in US-China trade war is a ‘hard deadline’

U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 “a hard deadline” to reach a deal on trade with China, and that new tariffs will be imposed otherwise. “As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March,” Lighthizer said on the CBS show “Face the Nation,” referring to President Donald Trump’s recent decision to delay tariff imposition until March 1 while talks proceed. “The w


U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 “a hard deadline” to reach a deal on trade with China, and that new tariffs will be imposed otherwise. “As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March,” Lighthizer said on the CBS show “Face the Nation,” referring to President Donald Trump’s recent decision to delay tariff imposition until March 1 while talks proceed. “The w
Lighthizer: 90 day pause in US-China trade war is a ‘hard deadline’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, united, hard, lighthizer, trade, tariff, trumps, 90, deadline, president, war, pause, uschina, way, day, tariffs


Lighthizer: 90 day pause in US-China trade war is a 'hard deadline'

U.S. Trade Representative Robert Lighthizer said on Sunday he considers March 1 “a hard deadline” to reach a deal on trade with China, and that new tariffs will be imposed otherwise.

“As far as I am concerned it is a hard deadline. When I talk to the president of the United States he is not talking about going beyond March,” Lighthizer said on the CBS show “Face the Nation,” referring to President Donald Trump’s recent decision to delay tariff imposition until March 1 while talks proceed.

“The way this is set up is that at the end of 90 days, these tariffs will be raised,” said Lighthizer, appearing to tamp down expectations that the negotiation period could be extended.


Company: cnbc, Activity: cnbc, Date: 2018-12-09  Authors: mauricio valenzuela, picture alliance, getty images
Keywords: news, cnbc, companies, united, hard, lighthizer, trade, tariff, trumps, 90, deadline, president, war, pause, uschina, way, day, tariffs


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Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues

Technology stocks across the region were under pressure, including many Huawei partners and suppliers. Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. “Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said. ZTE shares listed in Hong Kong were down 5.94 percent on the


Technology stocks across the region were under pressure, including many Huawei partners and suppliers. Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. “Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said. ZTE shares listed in Hong Kong were down 5.94 percent on the
Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: saheli roy choudhury, eustance huang, miguel candela, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, rout, continues, shares, stocks, fell, markets, hits, equipment, technology, major, tech, softbank, represents, selloff, hard, huawei, global, zte


Huawei CFO arrest hits Asian tech stocks hard; broader markets sell-off as global rout continues

Technology stocks across the region were under pressure, including many Huawei partners and suppliers.

Chipmaker Samsung tumbled 2.29 percent, Sunny Optical, which makes some of the lenses for Huawei phones, fell 5.47 percent and AAC Technologies declined 5.59 percent on the day. Chinasoft International, where Huawei is a strategic shareholder, dropped 11.71 percent.

Shares of Nikkei heavyweight SoftBank Group fell 4.93 percent. Last year, SoftBank and Huawei jointly demonstrated potential use of the next generation of high-speed mobile internet; SoftBank is taking its mobile unit public on Dec. 19.

The negative sentiment rippled through the broader Japanese tech sector, with shares of Tokyo Electron down 4.54 percent, Advantest falling 5.30 percent and TDK Corp dropping 6.64 percent.

Taiwan’s major tech names also struggled: Catcher Technology fell 9.89 percent, Taiwan Semiconductor was down 2.65 percent, Largan Precision lost 9.94 percent and iPhone assembler Hon Hai dropped 3.63 percent. Asia’s Apple suppliers, in general, saw Thursday declines.

Analysts at Jefferies pointed out that Huawei has a major global presence in various technology areas such as telecommunications equipment, semiconductors, smartphones and cloud computing. It also represents a major growth driver for many tech manufacturers.

Huawei’s Meng, who is the daughter of the company’s founder, faces extradition to the U.S., according to Canada’s Department of Justice.

While the arrest represents a new escalation in American efforts to hold Chinese companies accountable for violation of U.S. laws, it is likely to elicit an angry reaction from Beijing, according to Eurasia Group.

“The investigation of Huawei could be a prelude to further action against the firm and its senior officials,” the Eurasia Group analysts said, adding that if the U.S. places a sudden ban on Huawei equipment, like it did with ZTE, the impact would be much greater.

“Huawei equipment is more widely used (than ZTE is) by carriers around the world, including in Europe and Africa,” they said.

ZTE shares listed in Hong Kong were down 5.94 percent on the day.

Both Huawei and ZTE are restricted from selling telecoms equipment in the U.S. due to what the U.S. describes as national security concerns.


Company: cnbc, Activity: cnbc, Date: 2018-12-06  Authors: saheli roy choudhury, eustance huang, miguel candela, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, rout, continues, shares, stocks, fell, markets, hits, equipment, technology, major, tech, softbank, represents, selloff, hard, huawei, global, zte


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The prospect of a hard Brexit is increasing substantially: Economist

The prospect of a hard Brexit is increasing substantially: Economist19 Hours AgoKeith Wade of Schroders says Britain could face a “sharp downturn” in activity or even a recession if it crashes out of the European Union.


The prospect of a hard Brexit is increasing substantially: Economist19 Hours AgoKeith Wade of Schroders says Britain could face a “sharp downturn” in activity or even a recession if it crashes out of the European Union.
The prospect of a hard Brexit is increasing substantially: Economist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-04
Keywords: news, cnbc, companies, union, hard, brexit, substantially, prospect, hours, schroders, recession, increasing, wade, sharp, economist


The prospect of a hard Brexit is increasing substantially: Economist

The prospect of a hard Brexit is increasing substantially: Economist

19 Hours Ago

Keith Wade of Schroders says Britain could face a “sharp downturn” in activity or even a recession if it crashes out of the European Union.


Company: cnbc, Activity: cnbc, Date: 2018-12-04
Keywords: news, cnbc, companies, union, hard, brexit, substantially, prospect, hours, schroders, recession, increasing, wade, sharp, economist


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The Fed has caved to President Trump’s wishes and that’s a game changer

A few months ago, I laid out a simple thesis concerning the Federal Reserve. There were too many interest rate hikes over a short period of time and the magnitude of the increases would harm business. The second element in the theory was that President Donald Trump would be outraged by the Fed’s actions and he would strongly object forcing the Fed to reverse course. The acronyms for the agencies that saw a leadership change are: FSOC, FRB, FDIC, OCC, CFPB, CFTC, NCUA, SEC, Labor, and soon the FH


A few months ago, I laid out a simple thesis concerning the Federal Reserve. There were too many interest rate hikes over a short period of time and the magnitude of the increases would harm business. The second element in the theory was that President Donald Trump would be outraged by the Fed’s actions and he would strongly object forcing the Fed to reverse course. The acronyms for the agencies that saw a leadership change are: FSOC, FRB, FDIC, OCC, CFPB, CFTC, NCUA, SEC, Labor, and soon the FH
The Fed has caved to President Trump’s wishes and that’s a game changer Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: richard x bove, adam jeffery
Keywords: news, cnbc, companies, feds, president, game, period, thats, trumps, reserve, leadership, hard, fed, caved, believed, wishes, changer, rate, federal


The Fed has caved to President Trump's wishes and that's a game changer

A few months ago, I laid out a simple thesis concerning the Federal Reserve. First, I argued that the Federal Reserve’s monetary policy was too tight. There were too many interest rate hikes over a short period of time and the magnitude of the increases would harm business. Moreover, the shrinking of the Fed’s balance sheet was slowing the growth of the nation’s money supply to less than half its normal rate (3.00 percent vs. 6.25 percent).

The second element in the theory was that President Donald Trump would be outraged by the Fed’s actions and he would strongly object forcing the Fed to reverse course. The justification for this view was that the founders of the Federal Reserve never envisioned it to be an independent agency and most Presidents in the post World War II period lobbied hard to influence Fed decisions.

Moreover, I pointed out that this President had changed the leadership of every government agency related to bank regulation replacing what I would call “hard liners” with men and women more congenial to what was believed to be a pro-business approach to banking. The acronyms for the agencies that saw a leadership change are: FSOC, FRB, FDIC, OCC, CFPB, CFTC, NCUA, SEC, Labor, and soon the FHFA. The point here was the President demanded and obtained changes that he believed would facilitate his economic programs.


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: richard x bove, adam jeffery
Keywords: news, cnbc, companies, feds, president, game, period, thats, trumps, reserve, leadership, hard, fed, caved, believed, wishes, changer, rate, federal


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Trump has ‘silent’ support of world leaders to strike ‘hard bargain’ with China: Ex-NATO ambassador

The highly anticipated dinner between the two leaders, set for Saturday, will occur on the sidelines of the G-20 summit in Argentina. “I bet a lot of those leaders around the table at the G-20 might be whispering to Donald Trump, ‘Strike a hard bargain with the Chinese,'” Burns said. He expects China to offer a guarantee that they will import a certain level of U.S. exports per year. However, the administration is more interested in structural changes to China’s predatory trade practices, he add


The highly anticipated dinner between the two leaders, set for Saturday, will occur on the sidelines of the G-20 summit in Argentina. “I bet a lot of those leaders around the table at the G-20 might be whispering to Donald Trump, ‘Strike a hard bargain with the Chinese,'” Burns said. He expects China to offer a guarantee that they will import a certain level of U.S. exports per year. However, the administration is more interested in structural changes to China’s predatory trade practices, he add
Trump has ‘silent’ support of world leaders to strike ‘hard bargain’ with China: Ex-NATO ambassador Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: michelle fox, mikhail svetlov, getty images
Keywords: news, cnbc, companies, burns, trump, china, exnato, leaders, tariffs, silent, table, trade, g20, world, expects, chinas, chinese, hard, support, strike, bargain


Trump has 'silent' support of world leaders to strike 'hard bargain' with China: Ex-NATO ambassador

The highly anticipated dinner between the two leaders, set for Saturday, will occur on the sidelines of the G-20 summit in Argentina.

“I bet a lot of those leaders around the table at the G-20 might be whispering to Donald Trump, ‘Strike a hard bargain with the Chinese,'” Burns said.

The U.S. and China have been engaged in escalating tariffs. In September, the White House announced its latest duties on $200 billion of Chinese goods. If the two nations don’t reach a truce by 2019, the tariffs will jump from 10 percent to 25 percent. It’s part of the administration’s plan to obtain what it sees as more favorable trade deals for the U.S.

Trump has already fired the first round in negotiations, said Burns, who served as U.S. ambassador to NATO and was the State Department’s third-ranking diplomat during George W. Bush’s presidency.

The president told The Wall Street Journal earlier this week that he expects to move ahead with the 25 percent tariffs and also suggested he could place a 10 percent tariff on iPhones and laptops imported from China.

“He’s a cagey negotiator,” said Burns. “He’s trying to put the ball in China’s court and see the amount he can get from China, from Xi Jinping, across that table on Saturday night.

He expects China to offer a guarantee that they will import a certain level of U.S. exports per year. However, the administration is more interested in structural changes to China’s predatory trade practices, he added.

“It’s a cat-and-mouse game between two very strong-willed leaders, strong governments,” Burns said.


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: michelle fox, mikhail svetlov, getty images
Keywords: news, cnbc, companies, burns, trump, china, exnato, leaders, tariffs, silent, table, trade, g20, world, expects, chinas, chinese, hard, support, strike, bargain


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Liquidity squeeze could hit stocks hard, David Rosenberg warns

David Rosenberg says he’s worried about a serious risk that investors are largely overlooking. The Gluskin Sheff chief economist and strategist warns that the Federal Reserve’s balance sheet reduction —not rising interest rates — could have drastic implications for stocks. Just the balance sheet alone is going to create quite a significant liquidity squeeze next year.” “There’s never been a Fed tightening cycle at any time where the Fed didn’t go above that fabled neutral level.” “We’re going to


David Rosenberg says he’s worried about a serious risk that investors are largely overlooking. The Gluskin Sheff chief economist and strategist warns that the Federal Reserve’s balance sheet reduction —not rising interest rates — could have drastic implications for stocks. Just the balance sheet alone is going to create quite a significant liquidity squeeze next year.” “There’s never been a Fed tightening cycle at any time where the Fed didn’t go above that fabled neutral level.” “We’re going to
Liquidity squeeze could hit stocks hard, David Rosenberg warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: stephanie landsman, misha friedman, bloomberg, getty images, chris sattlberger, the image bank, saul loeb, afp, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, stocks, squeeze, fed, rates, hit, going, liquidity, hard, lot, tightening, street, really, rosenberg, sheet, david, warns, significant


Liquidity squeeze could hit stocks hard, David Rosenberg warns

David Rosenberg says he’s worried about a serious risk that investors are largely overlooking.

The Gluskin Sheff chief economist and strategist warns that the Federal Reserve’s balance sheet reduction —not rising interest rates — could have drastic implications for stocks.

“This is the elephant in the room,” he said Wednesday on CNBC’s “Trading Nation.” “The Fed doesn’t really have to do anything on rates. Just the balance sheet alone is going to create quite a significant liquidity squeeze next year.”

Rosenberg, who has been known as perma-bear on the Street for decades, stopped short at the size and scope of the market impact.

“It’s uncertain as to whether that causes an outright recession,” he said. “But it’s certainly going to trigger, I think, a significant slowdown that we’re already starting to see in a lot of the credit-sensitive data.”

Rosenberg spoke after Fed Chairman Jerome Powell signaled that interest rates were close to neutral, leaving investors to speculate that fewer hikes are ahead over the next 13 months.

“It doesn’t change my opinion of where Fed policy is going to be going over the next year — which is probably a little tighter than what’s priced in right now,” Rosenberg said. “There’s never been a Fed tightening cycle at any time where the Fed didn’t go above that fabled neutral level.”

Yet Powell’s comments still helped spark a rigorous rally on the Street. The Dow and S&P 500 saw their best day since March 26. In the first three sessions of this week, the Dow is now up 1,081 points.

“The market really wanted to rally,” said Rosenberg. “A lot of this is because of a lot of hope over the coming G-20 summit on the weekend, and hopes of diffusion over this trade war with the U.S. and China.”

Rosenberg contends the markets aren’t accurately pricing in the Fed policy risks.

“We’re going to be seeing with no fiscal stimulus next year, the peak impact of Fed tightening, the lagged impact, hit the economy and the markets more forcefully in 2019,” Rosenberg said. “That will be a major theme.”


Company: cnbc, Activity: cnbc, Date: 2018-11-29  Authors: stephanie landsman, misha friedman, bloomberg, getty images, chris sattlberger, the image bank, saul loeb, afp, kcna, thomas barwick getty images
Keywords: news, cnbc, companies, stocks, squeeze, fed, rates, hit, going, liquidity, hard, lot, tightening, street, really, rosenberg, sheet, david, warns, significant


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‘Core demands’ from the US are hard for China to agree to: Investor

‘Core demands’ from the US are hard for China to agree to: Investor13 Hours AgoFrank Tsui of Value Partners says the U.S.-China trade was is “possibly hurting” both countries, and he expects “prolonged negotiations” between the Washington and Beijing on this issue.


‘Core demands’ from the US are hard for China to agree to: Investor13 Hours AgoFrank Tsui of Value Partners says the U.S.-China trade was is “possibly hurting” both countries, and he expects “prolonged negotiations” between the Washington and Beijing on this issue.
‘Core demands’ from the US are hard for China to agree to: Investor Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-25
Keywords: news, cnbc, companies, value, investor, possibly, prolonged, china, negotiations, demands, hard, core, issue, uschina, trade, tsui, agree, partners, washington


'Core demands' from the US are hard for China to agree to: Investor

‘Core demands’ from the US are hard for China to agree to: Investor

13 Hours Ago

Frank Tsui of Value Partners says the U.S.-China trade was is “possibly hurting” both countries, and he expects “prolonged negotiations” between the Washington and Beijing on this issue.


Company: cnbc, Activity: cnbc, Date: 2018-11-25
Keywords: news, cnbc, companies, value, investor, possibly, prolonged, china, negotiations, demands, hard, core, issue, uschina, trade, tsui, agree, partners, washington


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China’s small businesses are having a hard time getting bank loans

It’s widely agreed that China needs to get its massive debt problem — estimated at more than three times the size of the economy — under control. But that effort is also seen as overburdening an important sector, the country’s small and medium-sized businesses, which are at the front line of the ongoing trade war with the United States. Small and medium-sized firms make up the majority of Chinese companies and are major employers but have traditionally faced challenges competing with China’s hug


It’s widely agreed that China needs to get its massive debt problem — estimated at more than three times the size of the economy — under control. But that effort is also seen as overburdening an important sector, the country’s small and medium-sized businesses, which are at the front line of the ongoing trade war with the United States. Small and medium-sized firms make up the majority of Chinese companies and are major employers but have traditionally faced challenges competing with China’s hug
China’s small businesses are having a hard time getting bank loans Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-21  Authors: kelly olsen, str, afp, getty images, -carlos casanova, asia pacific economist
Keywords: news, cnbc, companies, having, loans, trade, chinese, traditionally, vulnerable, times, getting, bank, hard, war, firms, widely, united, businesses, small, chinas, mediumsized


China's small businesses are having a hard time getting bank loans

It’s widely agreed that China needs to get its massive debt problem — estimated at more than three times the size of the economy — under control.

But that effort is also seen as overburdening an important sector, the country’s small and medium-sized businesses, which are at the front line of the ongoing trade war with the United States.

Small and medium-sized firms make up the majority of Chinese companies and are major employers but have traditionally faced challenges competing with China’s huge, state-owned enterprises for bank loans.

Adding to their importance, smaller firms are often part of intricate global supply chains that play a central role in Chinese exports, and thus vulnerable to the trade conflict with the United States.


Company: cnbc, Activity: cnbc, Date: 2018-11-21  Authors: kelly olsen, str, afp, getty images, -carlos casanova, asia pacific economist
Keywords: news, cnbc, companies, having, loans, trade, chinese, traditionally, vulnerable, times, getting, bank, hard, war, firms, widely, united, businesses, small, chinas, mediumsized


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India’s economy is booming. Now comes the hard part

Overall inequality also appears to have grown, according to Credit Suisse’s Global Wealth Report, which said the 2018 Gini coefficient for wealth in India rose to 0.854 from 0.83 in 2017 and 0.804 in 2011. The closer a country’s Gini value gets to 1.0, the more unequally distributed is its economy. But the analysis also shows that unlike most countries which started with high inequality, inequality in India has continued to rise,” Oxfam said. “In the context of the acceleration of growth rate of


Overall inequality also appears to have grown, according to Credit Suisse’s Global Wealth Report, which said the 2018 Gini coefficient for wealth in India rose to 0.854 from 0.83 in 2017 and 0.804 in 2011. The closer a country’s Gini value gets to 1.0, the more unequally distributed is its economy. But the analysis also shows that unlike most countries which started with high inequality, inequality in India has continued to rise,” Oxfam said. “In the context of the acceleration of growth rate of
India’s economy is booming. Now comes the hard part Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: harini v, adnan abidi, mohd zakir, hindustan times, getty images
Keywords: news, cnbc, companies, rise, economy, political, indian, wealth, india, hard, inequality, comes, report, gini, sabka, booming, indias, oxfam


India's economy is booming. Now comes the hard part

A 2018 report from international nonprofit Oxfam looked at different assessments from before and after Modi’s administration to conclude that more and more of the country’s income is going “to the top 10% and top 1% of the population.”

Overall inequality also appears to have grown, according to Credit Suisse’s Global Wealth Report, which said the 2018 Gini coefficient for wealth in India rose to 0.854 from 0.83 in 2017 and 0.804 in 2011. The closer a country’s Gini value gets to 1.0, the more unequally distributed is its economy.

“On most indicators, India is now among the countries with the highest level of inequality. But the analysis also shows that unlike most countries which started with high inequality, inequality in India has continued to rise,” Oxfam said. “In the context of the acceleration of growth rate of Indian economy, the rise in inequality raises issues of the distribution of gains from the growth.”

Oxfam separately reported that its online surveys showed 73 percent of respondents in India said “the gap between the rich and the poor needs to be addressed urgently or very urgently.”

Jayati Ghosh, professor at the Centre for Economic Studies and Planning at Jawaharlal Nehru University, blamed longstanding inequality in the country on a lack of political will and inefficient domestic policies: “Inequality is a political choice. The hold of the elites and powerful lobbies over government policy is very strong,” she said.

Modi, meanwhile, campaigned in 2014 on the slogan “Sabka Saath, Sabka Vikas,” which translates in English to “together with all, development for all.”

His party manifesto from that election year included some ambitious goals for improving the standard of living for all Indians by creating jobs, increasing profits for farmers, eradicating corruption, curbing inflation and more.

Since coming to power, Modi has taken public steps toward keeping some of those promises — and he’s made some new ones along the way — while others have seen fewer headlines. Here’s how experts think the Indian leader has fared so far.


Company: cnbc, Activity: cnbc, Date: 2018-11-15  Authors: harini v, adnan abidi, mohd zakir, hindustan times, getty images
Keywords: news, cnbc, companies, rise, economy, political, indian, wealth, india, hard, inequality, comes, report, gini, sabka, booming, indias, oxfam


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