The tour around the world shows an ongoing week that has witnessed a series of developments spanning the economy and financial markets of revered emerging nations notably Brazil, Rússia, Índia e China.
Índia
- India's service sector activity expanded in June, jumping to a peak of 59.2, the highest since April 2011, thanks to improving demand, favorable economic conditions and capacity expansion.
- Oil companies have had a tough time in recent sessions amid plummeting oil prices with growing concerns of a global recession triggering reduced fuel demand. The Center's surprise move to impose additional export excise duties on gasoline, ATF and diesel, along with a cut of 23,230 tonnes on crude produced by domestic refiners, contributed to the new inventory route.
- The Indian rupee dropped to an all-time low of 79.37 against the US dollar on July 5, and concerns over further depreciation added to the pressure. Analysts at Nomura expect the INR to drop to the 82 mark against the dollar.
- The Reserve Bank of India stepped in to rescue the devaluation of the domestic currency and announced measures to diversify and expand foreign exchange funding sources to reduce volatility and dampen global repercussions on Wednesday.
- Hiring in the country rose 22% in June 2022, with demand for entry-level jobs remaining the highest.
- The latest government income tax rule on cryptocurrencies has led to a significant drop in volumes for major Indian exchanges.
Russia
- The country's parliament on Wednesday passed two bills that would require companies to supply goods to the military and instructed employees at some companies to work overtime to support Russia's invasion of Ukraine.
- Andrey Denisov, Russian ambassador to China, told the UN World Peace Forum on Monday that Moscow supported the expansion of the UN Security Council and the idea of joining India and Brazil, but not Germany and Japan, for this would not "alter the internal balance" in any way.
- The Central Bank of Russia has announced the official legalization of cryptocurrency mining in the country, provided that all mined cryptocurrencies are sold outside Russia.
- Russia earned US$24 billion from energy sales to India and China after the invasion of Ukraine.
- The latest statistics from the Federal State Statistical Service show that the Russian economy is collapsing as production in various sectors such as automobiles and home appliances has plummeted.
China
- Services activity expanded at the fastest pace in nearly a year, with the PMI at 54.5 amid easing COVID-19 restrictions and resuming demand.
- Due to slowing economic growth, the country's debt is expected to hit a record high in 2022, with the overall leverage ratio likely to rise by 11.3ppt to around 275% for the year as the central bank aims to increase credit and help to struggling economy.
- China has also started to show signs of a gradual recovery in the country's economy and will set up a 500 billion Yuan state infrastructure fund in the third quarter to spur spending and revive the economy.
- Trade between Hong Kong and the Chinese mainland has increased more than sixfold in 25 years. By the end of 2021, Hong Kong's investment in China had surpassed US$1.4 trillion.
- The government announced raising 300 billion Yuan, approximately US$44.8 billion, to finance infrastructure projects by selling bonds and adopting other methods earlier this week to boost investment and increase employment in the second half of 2022.
Brazil
- The government has announced the creation of a new investigation team to work specifically on cryptocurrency-related fraud and cases.
- Brazil hopes to expand trade and investment with the Arab countries, said the Foreign Trade secretary at the Ministry of Economy, Lucas Ferraz, amid ongoing negotiations for trade agreements with Saudi Arabia, Lebanon and the United Arab Emirates.
- The overall volume of trade between the Kingdom of Bahrain and Brazil exceeded US$2.2 billion in 2021.
Sources: investing.com
