"Good and Bad Economic News "
Good and bad economic news is a term. One can act only according to one’s perception because what appears to be good may actually turn out to be bad for the economy. The latest in Australian economic news regarding the financial sector is that the Commonwealth Bank of Australia started its full-fledged operations in India in August this year. This is a reflection of Australia’s focus on emerging markets. While this is simple and indicative, the same cannot be said about other economic news that one may come across. Actually, it is quite difficult to interpret news that relate to economy and the state of a nation’s economic health. The fact is that not everyone is able to understand economic news easily. What appears to be a piece of good news may actually have multiple side effects and actually turn out to be bad for the economy. For example, the rising price of oil may indicate a rise in stock price of oil companies. That is a piece of good news for those who have invested in oil. Nevertheless, the other side is that rise in oil prices often leads to inflation due to increase in transport cost of commodities. That is bad news and it may eventually lead to reduction in liquidity and, in turn, to fall in price of oil shares. Every piece of economic and business news has to be perceived in relation to other factors prevailing at a point in time. For example, some very good news actually fails to bring a positive turn in absence of political stability. Similarly, the media also plays an important role. Economic news is usually followed by analysis by experts in the media. They can choose to underplay economic news for whatever reasons. Moreover, the role played by people having a stake in the expected response to economic news cannot be ignored. Mel writes about economic news among other business related topics.