Indian outsourcers hit by global economic worry

MUMBAI — Shares in India's biggest IT outsourcing firms sank on Tuesday on concerns that rising global economic uncertainty in key markets will hit future growth of the country's flagship sector.

India's largest software exporter Tata Consultancy Services closed down 7.71 percent to 1,033.50 rupees -- the company's sharpest single-day fall in a year a day after its latest quarterly growth data lagged estimates.

Europe close: Bourses mixed on global economic fears

LONDON (SHARECAST) - European markets finished mixed on Tuesday after a topsy-turvy day, but bourses recovered from their daily lows after a better start on Wall Street. However, early on, the mood was dampened by uncertainties concerning France’s credit rating and some worrying data from China.

The Cac in Paris finished 25 points down at 3.141. the Ibex in Madrid was 53 under at 8,811, while the Dax rose 18 to 5,877 in Germany.

Italy and Spain need ‘bazooka’ to avoid insolvency: Roubini

A Greek default could trigger a global economic shock on the scale of that suffered after Lehman Brother Holdings Inc.’s 2008 failure, said Nouriel Roubini, chairman and co-founder of Roubini Global Economics LLC.

A disorderly default by a member of the euro area or an exit from Europe’s single currency bloc could cause a shock “that would reverberate through the global economy,” Roubini said at a seminar in Helsinki Monday organized by Evli Bank Oyj.

Global Economy is Rebalancing Down; U.S. is Short-Funding Persistent Budget Deficit According to BNY Mellon's Hoey

LONDON and NEW YORK, Sept. 28, 2011 /PRNewswire via COMTEX/ -- The global economy is rebalancing down, as the stresses on the developed economies have increased. Odds therefore favor a global growth recession rather than a full-scale global recession, according to BNY Mellon Chief Economist Richard B. Hoey in his September 2011 Economic Update.

"The key to the global economic outlook is whether the resolution of the European financial stresses evolves in an orderly, semi-orderly or disorderly way," Hoey states. "We expect a semi-orderly pattern, which should be consistent with a global slowdown at a subdued pace rather than a full-scale global recession."

Global food security at risk: Thai rice subsidy could cause price turbulence

BANGKOK: A populist policy aimed at boosting the incomes of Thai farmers has raised fears of global rice price turbulence, and experts say the kingdom could just be hurting itself.

Thailand, the world’s biggest rice exporter, has vowed to boost the minimum price farmers receive by buying unmilled rice directly at 15,000 baht ($485) per ton from October. The current price is about 10,000 baht.

World Bank, China Advance Work on China Economy’s Future

The FINANCIAL -- BEIJING, September 5, 2011 – China and the World Bank are making significant progress on a joint report on how the world’s second largest economy can move to a path of sustainable growth in the face of today’s challenging global economic situation, said World Bank Group President Robert B. Zoellick.

Commenting in Beijing on a weekend workshop with senior Chinese officials and outside experts, Zoellick said there was agreement that China would have to rebalance its economy, improve the environment, reduce inequality and advance the quality of life for its people while at the same time maintaining rapid growth.

US and Europe in the Same Boat

S&P's downgrade of US credit brought the country's debt problem to the forefront, but the US is not alone; the euro crisis is flaring up again along with concerns over European banks.

For the first time in US history, the US credit rating was downgraded on August 5. Coming on the heels of the steepest stock-market drop since the 2008 financial crisis, it was a big blow to an already fragile financial system.

Media pressure may help speed up food security moves

More than two years have passed and there seems to be no progress worth speaking about in making the promised law that will guarantee food for the people. The promise came from the UPA-2 as part of its election manifesto in 2009. It was a time of recovery from a time of economic troubles. The impact of the global economic slowdown came on top of the agrarian crisis and the closure of several industrial undertakings, resulting in the loss of jobs and wage cuts that impoverished thousands of workers.

Glencore confident on outlook after maiden interims

Glencore (LON:GLEN), the miner and world’s commodities trader, yesterday posted very healthy first half profits despite a tricky trading environment over the period. Analysts at Citi are content with the group’s first set of result since its massive IPO in May and remain positive on its shares.

The Switzerland-based commodities group reported a 57% rise in first-half adjusted net income to $2.45 billion on sales ahead 32% to $92.12 billion.

Analysts at Citi say the “credible” interim performance was in line with their expectations at both the revenue and earnings before interest and tax (EBIT) level.

Chile Weathering Global Slump With 5% Growth in 2012 as Spending Increases

Chile, the world’s biggest copper producer, is poised to shrug off a global economic slowdown and generate growth of more than 5 percent next year, topping analysts’ estimates, Finance Minister Felipe Larrain said.

The government of President Sebastian Pinera aims to average 6 percent annual growth over its four-year term and is developing 2012 forecasts that point to an expansion of 5 percent or “somewhat” more, Larrain, 53, said yesterday at the Bloomberg Chile Economic Summit in Santiago. The government is establishing a financial stability council made up of central bank and government experts to better coordinate economic oversight as global risks mount, Larrain said.

LatAm, Asia leaders to boost cooperation

Leaders at a gathering of nations from Latin America and Asia, including Australia, has called for closer economic cooperation to help combat the global financial crisis.

Argentine Foreign Minister Hector Timerman kicked off Thursday's gathering by underlining 'the need for concrete actions to strengthen biregional political and economic ties'.

How imminent is China's global economic dominance?

More and more people in the United States are increasingly concerned about, even obsessed with, the emerging global economic dominance of China, which is also regarded by many around the world as the most important single global economic issue.

Mideast Bonds Rise as Investors Seek Haven From Europe Crisis: Arab Credit

Middle Eastern sovereign bonds are rallying for a second month as economic growth and cash-rich banks lure investors seeking shelter from Europe’s debt crisis and the U.S. economic slowdown.

Schroder Investment Management Ltd., Abu Dhabi Commercial Bank PJSC and Fideuram Asset Management Ireland Ltd. predict the rise, fueled by Persian Gulf borrowers and Lebanon, may continue. The average yield on the region’s notes declined 17 basis points, or 0.17 percentage point, this month to 4.67 percent, the lowest since November, the HSBC/Nasdaq Dubai Middle East Conventional Sovereign US Dollar Bond Index shows. Rates on emerging-market government debt fell three basis points to 5.64 percent on Aug. 17, data compiled by JPMorgan Chase & Co. show.

Harper signs deals on air travel, pensions with Brazil

Prime Minister Stephen Harper and Brazilian President Dilma Rousseff signed on Monday, a trade agreement meant to give airlines more flexibility and provide expats with continuous social security benefits.

“Brazil is a major global economic player and a key priority market for Canada,” Harper said in a statement. “These agreements will benefit both countries by promoting greater two-way flow of people, goods and services, enhancing our competitiveness and further strengthening our partnership in key areas of shared interest.”

Global debt concerns lead investors to flee to gold as safe haven

Despite the US Senate coming to an agreement yesterday on raising the debt ceiling and confirmation from credit agencies that the US will not lose its triple-A rating for the time being, stock markets around the globe fell yesterday and investors sought the security of gold.

The precious metal, seen as a sanctuary for investors in times of economic uncertainty, hit another high, peaking at $1,670 an ounce. In addition to concerns about the US economy, investors are worried that eurozone difficulties could intensify further.

IMF: US Debt Deal First Step To Healthy Finances, Avoids Economic Chaos

WASHINGTON (Dow Jones)--The International Monetary Fund said a deal to raise the U.S. debt ceiling is an important first step that averted global economic calamity and helped to reassure markets.

"Raising the debt ceiling means a severe economic disruption has been avoided, and the accompanying deficit reduction deal is an important step toward fiscal consolidation," IMF Managing Director Christine Lagarde said in a statement after the president signed the budget deal into law.

CN Rail shares slip on global economic worries

VANCOUVER (Reuters) - Shares of Canadian National Railway Co (CNR.TO: Quote) slid more than 3 percent on Tuesday on concerns about a potential slowdown in global economic growth along with profit-taking after a rally by its stock this year.

The slide came a day after CN Rail, Canada's biggest railroad, reported better than expected second-quarter results, despite difficulties including floods in Western Canada, forest fires and mudslides.

US debt impasse a global issue

The political deadlock in Washington on whether and how to increase the United States’ debt limit is causing anxiety over a possible default and the consequent global economic downturn.

THE deepening of the Eurozone debt crisis last week through contagion, spreading to Italy, was more than matched by the growing chance that the US government would not be able to pay its bills or service its debts starting Aug 2.

Enhancing Pakistan’s Energy Security

With an economy highly dependent on energy imports, Pakistan’s energy security challenges are a liability that is exacerbating the country’s already poor governance record. However, mounting domestic pressures and the global economic rebalancing led by China and India could provide the impetus for Pakistan to emerge as a more responsible energy stakeholder.

Top 5 Reasons for Angst Among the Wealthy

Pessimism about global economic climate and U.S. economy abounds

Wealthy Americans today are worried about the global political and economic climate and the long-term health of the U.S. economy, according to a survey by Insite Security and IBOPE Zogby International.

Insite released a white paper on Wednesday, detailing the results of a survey of some 300 U.S. high-net-worth adults on their post-recession attitudes toward the economy, politics and style of life.