Businesses are performing little better in this year

Recession created troubles for business houses. Now situation is little better. Companies are showing good results. Apple’s profit rises up to 95% in first quarter of this year. This show consumer confidence. Although nokia ‘s profit decreases 1% but it was above expectation. Net profit of American giant General Electric rose more than 79% in first quarter of this year than first quarter of previous years . In previous year , recession hit most businesses. Now effect of recession is decreasing and companies are performing better.

Inflation is a big challenge for central banks

Inflation is a major concern today. World economy is suffering from high rate of inflation. Main cause of inflation is rising crude oil prices and financial packages given by governments to help economy in recession time. Interest rates are at very low rage. In US inflation rate increased from 2.2 to 2.7 in March. In China inflation is reached very high above 5% in March. Chinese consumers are suffering from high housing and food prices . Chinese central bank is trying to keep liquidity in control. Inflation is already record high in England.
Economists believe that crude oil may remain above $100 or go up.
Gold and silver are at record high. Currencies are showing weakness. So in future controlling inflation is a big challenge for central banks.
Increasing interest rates may hit economic growth. Crude oil prices are out of control. It is a big challenge.

Employment rate is not improving in Spain , Oil prices making problems

According to Spanish Labor department , unemployed numbers touched 4.7 million this month. Conditions are not similar in America or other countries as other economies are showing recovery . Big portion of Spanish labor is unemployed. About 20% of population is unemployed. Rate is one of highest in the century. Spain has socialist government and socialist polices are also responsible for delay in recovery. In other major European countries unemployment rate is falling. One reason of slow recovery is Spanish construction boom which is ended. In past economy depended highly on construction sector. This sector takes more time to improve than other consumption sector. Oil is reaching new highly of 2years. It reached above $108 and it may slow or stop economic recovery. Conditions in Libya made situations worst.

Unemployment rate decreases in US, Europe & debate of nuclear energy in Germany

After Feb, US employment rate increased again in March. European economy is also showing recovery singals. US unemployment rate fell to 8.8 from 8.9. Europe also registered increase in employment. This employment will create demand in economy which is key to growth. But there are fears of increasing inflation. Oil & commodity prices can increase inflation rate. Inflation may hurt this employment growth. Outlook of economy is good. There is a debate about nuclear energy in Germany. A local German govt. order a company to suspend energy production in a nuclear plant for some month. Germany already have much energy consumption. Such activities would damage economic growth as Germany does not have enough energy resources.We hope nuclear energy would not be discouraged in Germany as it is not good for economic growth
.

Is Libya so important for us?

America is busy in Libya. America is suffering from recession. GDP is not performing well. Then in spite of thinking about our economy , administration is busy in Libya. Unlike Iran & South Korea , Libya has no effect on America. Then why America giving so much importance to Libya? China & Russia are not taking interest in these things. There main target is growth. But some western countries do not want to think about their future but want to keep busy themselves in pity maters. Keeping oil price low with political pressure is not a solution of crude. It may be more dangerous for us.
American administration should really think about it . America already knows there is no risk from Libya having dangerous weapons. Then what is need to participate in such activities? This is harmful for American image. We will get nothing from it except hate from world. Is Libya so important for us or our economy is more important for us.

Outlook of Insurance sector after Japanese quake

Outlook of insurance sector may change after damage of assets worth more than $ billions. Swiss Re is being considered biggest victim of this event. American giant AIG
also has to face big claims. But exact figure is not declared by companies. Earlier earthquake in New Zealand also created liabilities for Swiss Re. But is just an accident and does not happen regularly. Confidence in insurance sector can return with time.
Japan has v. big GDP. Loss of assets is not main problem. Main problem is decreasing confidence. Japanese economy was not in good situation even before this quake. Now it is time to watch what steps Government take to handle this situation.

Will Japan’s quake would discourage nuclear energy uses

Japan ‘s nuclear crises enforced word to think about their nuclear reactors.
It is not first event but it is most critical event in history. No one can imagine it.
Actually nuclear energy is very important in modern economy.We cannot think
about better future without nuclear energy specially at present. Crude oil may
be guest of a decade. Crude oil already above $100 and would go much high ,
how it can be substitute of nuclear energy. Nuclear energy provides about
13-16% of world electricity and most countries were planning to increase it.
France already produces more than 80% of electricity from nuclear reactors.
Major economies are already in back gear, and cannot bear this burden.
Japan is highly quake risky location. But many other countries have not
such background. Yes some countries will take some steps to discourage
nuclear energy but in long run we have to accept nuclear energy.Until we find
a good substitute of crude, we cannot leave nuclear energy.