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U.S. consumer expenditures adding boost to the economy

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The overall spending by U.S. consumer gathered momentum during the month of November as the household owners bought electronics, furniture, and similar goods. This further reduces the fears of a major slowdown of the American economy. But when an overall outlook is obtained for the same, the picture still continues to darken with time.

This upbeat data acquired from Commerce Department dated Friday strengthened the expectations that Federal Reserve shall raise the interest rates this year for the 4th time during the policy meeting for December 18-19. This is despite the moderating inflation along with tighter conditions of the financial market.

This also showcased a stark contrast when compared to the reports by China stating a stringent fall-off for the retail sales of the 2nd largest economy of the world. This was even in contrast with Europe where the key measures for business activities actually expanded and a fairly slow rate for 4 years. The Central Bank of U.S. has hiked its interest rates about 3 times just this year.

Chris Rupkey, the chief economist working at MUFG, New York mentioned that the reports brought out today suggest the Fed officials that the customers aren’t just confident, they are also keeping the money where needed and purchasing goods, enough to allow the economy to hum. The retail sales minus the sales for gasoline, building materials, automobiles, and the food services surged by a mark of 0.9 percent the previous month. This was just after an upward revise of 0.7 percent in the month of October.

These retail sales that correspond fairly close to the consumer spending part of the overall domestic product were actually reported in October to have acquired about a 0.3 percent rise. The economist poll organized by Reuters forecasted about 0.4 percent rise in sales last month. The increase for sales in core retail seen in the month of November with October’s data’s upward revisions suggest that there was a brisk pacing up of the consumer spending during the 4th quarter. Consumer spending is a fraction of the economy that accounts for close to 2/3rd of the same. This increased at the annualized rate of 3.6 percent during the quarter of July-September.

The Reuters poll that was released dated Thursday showed the economists that there is a probable risk from recession to occur anytime in the upcoming two years. This will be a surge to 40 percent which is up from the 35 percent mark last month.

Stocks tumble down while growth concerns prevail for the US

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Businessman checking stock market data. Analysis economy data on forex earn graph.

The fair-play of the USA stock markets have come down along with the fall of the global stock exchange, thereby slowing down the business and pushing the country’s economy towards a negative.

The slippages recorded were 1.07% for S&P 500 (^GSPC) or 28.43 points. Similarly, the Dow (^DJI) slipped by 1.22% or 299.76 points, and the NASDAQ (^IXIC) slid by 1.09% or 77.34 points.

The fall in the global market is marked due to the weakened economy of the South and Southeast Asian countries, especially China and Europe. Data reveals that the industrial production of China as of November has slowed down to 5.4%. While the sale in the retail sector increased by 8.1% since last year, this is still the lowest speed of growth seen since 2003. An increment in fixed asset investment has been accounted for and it has increased as much as 5.9% in the first eleven months of the financial year. This growth can be relied upon as a potential factor that can stabilize the market’s current status.

Car sales from Europe have leveled down for the third month in a row. Registrations for passenger cars have fallen down 8.1% in November that brings only a change by 0.6% in EU and European Free Trade Association area, as is reported by the European Automobile Manufacturers Associated.

The trade war has resulted in a global recursion of the stock markets. China has confirmed that it will cut the tariff to about 40% made on the USA autos to 15%. This decision may see some ease to the strain that has been increasing between the USA and China. The reduced levy will be launched for 90 days from 1 January.

A great deal of amount was pulled from US-based stock funds for seven days. This was about $46 billion from mutual funds and exchange-traded funds and $13 billion was withdrawn from bonds.

Different firms have mentioned that cash is a forcible option to survive the stocks. Cash has now been considered as “competitive”, said equity strategists in Goldman Sachs and Bank of America Merrill Lynch. The equity market is under a high pressure due to higher rates, said Jefferies analysts. These statements point out to a fact that it is better for the investors to let their cash mature in a bank account that will bear interest.

Although some investors are in a hope that the conditions will revive, there is an urgent need to lessen the tension creeping up due to the trade war.

Global investors warn potential financial crash pending deteriorating climatic conditions

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Global Investors that manage $32tn on Monday issued a fair warning to the government officials working for UN Climate Summit. The investors demand urgent cuts for the carbon emissions as well as the depletion of coal burning. They warn that without these steps implemented, the world will face a financial crisis that goes way deeper than the one that occurred in the year 2008.

These investors include brilliant brains from some of world’s largest pension funds, asset managers, and insurers. This is probably the largest intervention of its type till date. They all demand that the fossil fuel based subsidies need to end along with substantial taxes introduced for carbon emission. Chris Newton, from the IFM Investors that manages $80 billion, mentioned that this challenge is a long-term matter that has yet been met with zombie-like response coming from many. IFM Investors is one among the total 415 groups from all over the world that signed this Global Investor Statement.

He also added that this is actually a recipe breeding disaster given the fact that climate change could be sudden, catastrophic, and severe at the same time. Without any rapid action taken to obtain control, the global economic scenario will showcase a loss of $23tn per year, as mentioned by the Investment firm named Schroders. This permanent damage to the economy would be 4 times the one experienced in the year 2008.

The rating agency by Standard and Poor also warned the global leaders that climate change is very much real and has started altering the functionality of the world, thereby affecting the global economy. Another signatory, Thomas DiNapoli, from New York State Common Retirement Fund handling $207bn stated that taking rapid action to control the events leading up to global warming can not only avoid the damage but also boost the overall presence of jobs and economical growth. He further added that low-carbon economy comes with a scope for numerous opportunities. The investors that ignore this changing world will only face negative traction of the finances.

Lord Nicholas Stern, from the London School of Economics, mentioned that the 21st century requires a low-carbon economy for its growth. Without that, it’s only downhill for the global economy. Dozens of growing nations affirm their complete commitment towards ending of coal burning. However, countries such as China, Japan, and the US has seen financial institutions that have been backing the proposal for new plants for coal production with $500bn aid post Paris agreement.

Nancy Pelosi ensures speaker position by cutting deal with the democratic rebels

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The House Democratic Leader Nancy Pelosi has already gained a lot of support that would probably be enough to hold the position of the speaker of the House in the upcoming year when the new Congress comes to the power.

In an understanding pact, the House Democrats who sworn to vote against the existing longtime so-called Democratic Leader will now vote in support of Pelosi in the next House Speaker’s elections to be held following month. The Democrats group and the Californian lawmaker agreed to the terms and conditions and finally it was decided that she would be elected to the post by 2022 at the tail end. This pact assures that Nancy Pelosi will get at least 218 number of votes easily. That would be ample to get her to win the speakership on the House’s ballot.

Pelosi said that there was an immediate need of the next generation leaders to come up to play their roles to save the essence of Democracy. She mentioned that she can act as a bridge and bring in the Democratic leaders to action. She implies that she knows her responsibility as a mentor to guide new and advanced members into correct positions and powers in House Democratic Caucus.

In terms of limitations extended in the agreement, the position will be handed over only after a formal round of v0ting, thus limiting the caucus leaders to three terms and the fourth being if at least two-thirds of the caucus leaders agree to it. The limitations put up will restrict Pelosi, the incoming Majority Leader Steny Hoyer of Maryland, and incoming Majority Whip Jim Clyburn of South Carolina.

While the anti-Pelosi team led by Massachusetts Rep. Seth Moulton has tried to introduce points that raises questions on the way Pelosi works, but Pelosi has still struggled to manage her head above water and continues to grow. It was the same group of rebels that had prevented her in 2007-2010 from reclaiming speakership. Pelosi has gained support from one particular Democrat, Ohio Rep. Marcia Fudge and since then, she continued to grow more on her support. Ohio Rep, Moulton, and five more Democrats said that it would be a pleasure on their behalf to support Pelosi for the Speaker of the House in the 116th Congress.

Even in a conflict between Trump and Pelosi, she proved her righteousness for the position of a speaker. Although she had decided to set aside and take a retirement after the 2016 elections; the results of the elections thereby declaring Trump the President had disappointed her and she made her mind to continue.

Warp Charge Tech enters India with launch of OnePlus 6T McLaren Edition

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One of the leading mobile phone technology company, OnePlus has launched its new version in the Indian market, after uncovering its high-end technic to the world on Tuesday. The OnePlus 6T McLaren edition is the latest genre of OnePlus 6T, that has won millions of hearts for its unique features. The product was launched at Mumbai on Wednesday.

The OnePlus 6T McLaren edition has an unrivaled set of features as the other mobile phones by the company. These properties are created to meet the demand of the public and make the smartphone usage even more convenient with the add-on.

Set at a price of INR 50,999, the phone has 10GB RAM/ 256GB storage configuration, which is the only smartphone to proffer this attribute. This price is, of course, high as compared to another model that was launched in October this year with 8GB RAM/256GB internal storage. The price difference between both the models is around INR 5,000. Additional features have a McLaren signature special papaya orange tone, a carbonized fiber pattern under glass back panel, and customized orange braided Papaya Orange Type-C cable with superfast charging technic to allow a full charge to be achieved within a timespan of only 20 min.

The smartphone will be aired for sale from December 15 at Amazon India and will be an exclusive Amazon product. Offline distribution of the phone will also be made available to the people at OnePlus exclusive showrooms in various key cities. On the occasion of the launch, the phone will be sold at a very special rate on December 13 at the OnePlus exclusive store and OnePlus Experience Store at Connaught Place in New Delhi. This is a golden chance for the customers to bag the new product at a great deal.

Amazing offers shall be extended by the company to commemorate the 5th year anniversary of success. This offer will last from December 15 to December 24 and is applicable to all OnePlus variants. The offers involve INR 2,000 cashback on EMI transactions done through Axis Bank, both online or offline, a cashback worth INR 1,500 using Axis Bank debit or credit card, and up to 6 months of no-cost EMI on Amazon India and the exclusive stores.

In addition to these great deals of discounts on the products, one can also exchange its old OnePlus and avail a relief up to INR 3,000 and INR 2,000 for other smartphones, online or offline.

Tesla to sue Martin Tripp for more than $167 million pending recent lawsuit

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Tesla will be suing Martin Tripp, its former employee for more than $167 million after the revelation of the recent legal filings. The lawsuit filed in June by an electric car maker, Tesla TSLA holds Tripp, who was a former engineer for illegally exporting data and making false claims to the reporters amidst other things.

Tesla and Trip indulge in a bitter legal battle when Tripp claimed that flawed battery manufacturing practices were used by the electric vehicle maker, who was hiding relevant information from the shareholders.

Earlier, Tesla has mentioned Tripp as a dissatisfied ex-employee. Elon Musk, the CEO considered him as a “saboteur” in the company-wide e-mails.

In many press interviews, Tripp had previously claimed that Tesla was engaged in poor manufacturing practices in its big battery plant, located outside of Reno, Nevada, and also said that it would have used a damaged battery in its Model 3 vehicles, which poses a risk to the drivers.

According to a report of interim case management published on 27th November, it is revealed that Tripp’s attorneys tried to overthrow Elon Musk, Tesla CEO and more than 10 people were involved along with the company. Tesla has denied making Musk available and wanted to restrict the number of people removed from Tripp’s defense team at Tiffany & Bosco, the law firm.

In that report, Tripp’s lawyers have written that Tesla has opposed Mr. Tripp’s wish of taking more than 10 depositions. And in this situation, where an action has been taken against Mr. Tripp and is charged more than $167,000,000 and has added counterclaims opposing Tesla, more than 10 depositions are certainly appropriate and reasonable.

Robert D. Mitchell, Tripp attorney said to CNBC in an email that the given damage amount that is claimed by Tesla is related to the dips in the stock price of Tesla as per the information provided given by Mr. Tripp to the press, the last summer and characterized the damage claims to be absurd. But, Tesla didn’t comment.

A whistleblower complaint separated the suit in Nevada,  involving Tripp. In July, Tripp had filed a complaint with the Securities and Exchange Commission that Tesla has made misstatements and material omissions to investors relating to its imprecise manufacturing practices and crap handling at the Gigafactory.

CNBC told that earlier Meissner Associates represented Tripp in the whistleblower matter, but now Tripp is representing himself as attorney Stuart Meissner. Meissner refused to comment further and Tripp also ignored comment requests.

BlackBerry brings forth secure traffic technology for smart cities

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Blackberry is quite interested to invest its technology and integrate itself with the smart cities and vehicles. The company has declared that it has developed a new plan to proffer infrastructure for vehicles and traffic lights to communicate with each other, very securely. The Waterloo, Ontario-based company will turn down the service charges and overhead expenditure for their product. The product can thus be used by the automakers and government offices that count into the smart city without much extra cost. This is to make certain that the users can gain confidence in the validity and information exchange from other systems.

The service has been planned to be set up in a 16-kilometer road, where an autonomous vehicle testing track will be laid out identical to the small-scale version of a city with all the traffic signals like pavement marks, traffic lights, pedestrian cross-walks or zebra-crossings, and stop signs.

The service is not targeted to Google or anywhere related to it, as is revealed by BlackBerry chief executive John Chen at a conference in Toronto. This has been made clear that the sister-company of Google, Sidewalk Labs has been impaired out of the project to develop the smart-city.

Chen has elaborated that the technology service that Blackberry is providing almost for a free-cost will not be extended by any other company. The company also focuses on data security and assured safe-communications so that the end-users of the technology can control their own privacy and decide what they wish to share or hide.

When Chen was asked whether the rival companies too big, can be curbed down when it comes down to data security and privacy, the personage replied that in such a case if the ability of the rival companies are cut short to bring in more data, then their existing data may turn into a waste and everything becomes meaningless. A two-sided private-public policy is needed in this case.

The gap between technology and people upon whom the policies are to be implied, has to be minimized without letting the government policy control the technics, said Chen.

Chen also cited an example. If a person does not want to share his current location but find gas stations near to him, then he should be able to do this without any privacy concerns. It is a prime responsibility of the Canadian government to bring into effect some strict policies related to data security so that the citizens do not have to compromise on their privacy.

Asian manufacturers weighed down by US-China Trade War

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The export orders have declined drastically for the manufacturers in Asia. The US-China relations have strained and the tension continues to grow especially in the trading domain. This has resulted in smashing the industrial demand of the Chinese products in the global market, announces Nikkei Purchasing Managers’ Index survey.

While an investigation by Nikkei PMI was being carried out in other Asian countries about the economic outputs, business, and order recruitments to find out their conditions over months. A plus 50 would indicate expansion and a minus 50 as a contraction in the economy.

A 90- day pause was agreed upon in the new tariffs by the time the two countries try to resolve the controversy. This agreement was decided upon before the heads of the countries, American President Donald Trump and Chinese President Xi Jinping met. The records from November show the upshot of the trade dispute when the export-dependent countries, including that of China, faced a sharp drop in purchase orders. South Korea’s Purchasing Managers’ Index fell from 51.0 to 48.6 in the month of October and so did its New Export Orders index from 49.5 to 46.2. The statistics for the other Asian countries have also revealed similar information.

The weaker demand for products from Hyundai MotorKia Motors, GM Korea, Ssangyong Motor and Renault Samsung has accounted to about 720,000 cars in November. This is 4.9% lesser than last year’s export sale. The exports from South Korea to China have declined to such a low level for the first time in the trade history of the two countries, in accordance with government records.

Amongst all the Southeast countries, Malaysia was worst hit dropping down from 49.2 to 48. 2. The PMI for Taiwan shrunk from 48.7 to 48.4 and the New Export Orders index maintained as low as 45.8. The Philippines, on the other hand, showed an increment in the value from 54 to 54.2, but New Export Orders index continued to fall. While the Association of Southeast Asian countries showed the PMI growth to 50.4 from 49.8, the New Export Orders index was fixed below 50 at 49.3, for the fourth time in a row.

An economist at IHS Markit, David Owen stated that the figures are just a small rebound. The growth rate was weaker in comparison to rates earlier in the year and that the total overhead orders have minimally increased, in terms of fractions. The global downtrends in the trade have resulted in a deterioration of export orders.

RIL to introduces 7 units for telecom’s risk management and content business

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India’s fastest growing and the most demanded network, Reliance India Limited has generated seven subsidiaries for better management of its telecom and content businesses.

A senior official of namelessness has declared the set-up of the following subsidiaries; JioInternet Distribution Holdings, Jio Cable and Broadband Holdings, Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings, Jio Digital Cableco Pvt. Ltd, Jio Television Distribution Holdings, and Jio Content Distribution Holdings. These subsidiaries will be assigned to improve services like broadband internet, transmission of signals, wireless, data, and hosting, residentiary retail customers, cable services, voice over internet (VOI), and video on demand protocols. There are other services too to be focused on.

This is one of the biggest steps that the company is taking to bring the internet services and telecommunication world in India by a storm. The subsidiary set-up decision will help the company to get an efficient control over the various sectors of the telecom and content businesses, say the analysts. This will definitely ease up the risks on funds and management through Reliance’s back up. The company may bring the subsidiaries together too if required in future, as is said by a Mumbai-based brokerage analyst.

The company has tied a link and bought stakes from Den and Hathway cable networks in October to display the play of its performance. Reliance has put ₹2,290 crore for a 66% stake in Den Networks Ltd and ₹2,940 crore for a 51.3% stake in Hathway Cable and Datacom Ltd.

With laying out miles of connecting cables and networks, the company wants to reach out to almost every house and corporation of India, worth a market of 50 million homes across 1100 cities. The company’s subsidiaries have planned to create a commercial advertising venture in relation to e-commerce, internet, telecom, manufacturing, and information technology services.

The policy of Reliance India Limited to determine a material secondary business plan is when the company’s net worth or income exceeds 20%. The 2017-2018 annual report of the company showed that the company terminated or merged with over twenty-six subsidiaries. Currently, Reliance India Limited is growing as a very powerful sector and is in charge of 84 Indian supplementary companies and 42 foreign companies. It also appoints 25 Indian and 7 abroad based companies as partners or confederates. Not just that, Reliance is linked in as a joint venture with more than 20 Indian and 5 overseas companies. Reliance has been planning to activate these subsidiaries into work very soon.

Japan hits heaviest economical crisis over 4 years pending global business spending risks

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The economy of Japan has been shrinking extensively since the last four financial years. Over one-third companies have cut-short their expenditure. This has threatened the investment point of view in the upcoming year of 2019. Japan as an export-dependent country struggles with the lessened of the global trade growth and trade rates.

The collapse in one of the biggest economies of the world has shown a direct impact on the other countries of Asia and Europe too. The sign of the reduced economy is felt by the entire Asian continent, mainly. The financial state of China and Australia has also been badly hit exhibiting a deceleration in growth. This now tends to raise a concern about the far-ranging impact of Sino-USA trade war.

The island’s Gross Development Produce has dwindled at an alarming rate of 2.5 percent from July to September quarter. This has proved to be the worst decline since 2014 when the growth rate in the second quarter of the year dropped at the rate of 2.8 percent, as is presented through the data shown by Cabinet Office.

Adding to the financial burden on Japan, the natural disasters have smacked the records even down. The factory productions have come shrunk by 1.2 percent against the calculation of 1.9 percent by economic experts. The expenditure of capitals has fallen down to 2.8 percent, which is much more than expected 1.6 percent. The result of this decline has further tuned down the spending by wholesalers, retailers, and merchants. The capital expenditure is also reducing in machinery, equipment and automobile production, mentions Takeshi Minami, the chief economist at Norinchukin Research Institute.

The menace of business cutting and shutting down is bothering the policymakers who completely rely upon capex growth and escalation. The slump in capital expenditure is burdensome on the investor and businessmen, reducing their confidence to each loss. The cooling of the global trade and stock market for the second time in the year has soured the spirit of manufacturers of the country. The Reuter’s monthly poll points straightaway to the harsh decrement in the central bank’s Tankan survey.

The main cause behind this trouble is the Sino-US trade war. The Japanese manufacturers such as Canon, Yaskawa Electric Corporation, etc have been facing loss due to the trade friction.

Private consumption, on the other hand, has also dropped down to 0.2 percent while domestic demand shaved-off by 0.5 percent. The net export shows a figure with a negative value of minus 0.1. This leveling off needs to be dealt with soon, otherwise, stabilizing Japan’s economy will become a strenuous job.