The $12 Billion High-Speed Passenger Rail Line between Las Vegas and the Los Angeles Area

April 22, 2024, 2 Minutes Read

A groundbreaking project that will revolutionize transportation between Las Vegas and the Los Angeles area. The ambitious $12 billion high-speed passenger rail line, spearheaded by Brightline West, is expected to attract millions of ticket-buyers by 2028.

Brightline West, a sister company of the successful Miami-Orlando fast train operation in Florida, plans to lay approximately 218 miles (351 kilometers) of new track to connect the two major cities. The rail line will start from a terminal just south of the iconic Las Vegas Strip and extend to a new facility in Rancho Cucamonga, California. The majority of the track will be built in the median of Interstate 15, offering a convenient and efficient route for travelers.

Brightline aims to link other U.S. cities that are too near to each other for flying between them to make sense and too far for people to drive the distance, Edens said.CEO Mike Reininger has said the goal is to have trains operating in time for the Summer Olympics in Los Angeles in 2028.

U.S. Transportation Secretary Pete Buttigieg is scheduled to take part in Monday’s groundbreaking. Brightline received $6.5 billion in backing from the Biden administration, including a $3 billion grant from federal infrastructure funds and approval to sell another $2.5 billion in tax-exempt bonds. The company won federal authorization in 2020 to sell $1 billion in similar bonds.

The project is touted as the first true high-speed passenger rail line in the nation, designed to reach speeds of 186 mph (300 kph), comparable to Japan’s Shinkansen bullet trains.

The route between Vegas and L.A. is largely open space, with no convenient alternate to I-15. Brightline’s Southern California terminal will be at a commuter rail connection to downtown Los Angeles. (Source: Las Vegas/ AP News)

Photo by Wilfredo Lee/ AP Photo.

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Thailand's Government implements $13.7 billion Digital Money Handouts to Boost Economy

April 11, 2024, 3 Minutes Read

Thailand's Prime Minister, Srettha Thavisin, recently unveiled a plan aimed at stimulating the country's economy. The government intends to distribute digital cash handouts of 10,000 baht ($275) to approximately 50 million Thai citizens, encouraging them to spend the money at local businesses. During a news conference, Prime Minister Srettha outlined the details of the 500-billion-baht ($13.7-billion) plan. The funds for this initiative will mainly come from the 2024 and 2025 fiscal budgets, and the implementation is scheduled for the last quarter of the year. The primary objective of this stimulus package is to boost the country's gross domestic product (GDP) growth. Prime Minister Srettha stated that the stimulus and subsequent consumption are expected to contribute to a growth rate of 1.2 to 1.6 percentage points. This increase in GDP growth is significant, considering that the World Bank estimated Thailand's year-on-year GDP growth at 1.5% in December.

The digital cash handouts aim to provide immediate financial relief to Thai citizens, especially those who have been impacted by the economic downturn caused by the COVID-19 pandemic. By injecting money directly into the hands of the people, the government hopes to stimulate local businesses and encourage spending within the country. The decision to distribute the cash handouts digitally is a strategic move that aligns with Thailand's efforts to promote digitalization and financial inclusion. This approach allows for efficient distribution and ensures that the funds reach the intended recipients promptly.

The digital purchases will be allowed only in the recipients’ own districts, and will not be allowed for items including oil, services, and online purchases.

Srettha called the project a “life-changing policy for the people.” He expressed his disappointment that the project could not be carried out earlier but said the government needed to make it transparent and legal.

Thailand’s central bank has resisted pressure from the government to boost the economy by cutting interest rates, opting to keep its policy unchanged at a meeting on Wednesday. But analysts expect the Bank of Thailand to cut its 2.5% benchmark rate later in the year, given that inflation has been falling for six straight months.

Thailand’s levels of household debt are relatively high, and higher interest rates raise borrowing costs, tending to discourage spending and investment. (Source: Bangkok/ AP News)

Photo by Sakchai Lalit/ AP Photo.

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Asia stocks are mostly lower after Wall Street rebound

April 1, 2024, 2 Minutes Read

Asia stocks mostly faced a downward trend on Friday, with the exception of Tokyo's Nikkei 225 index which showed gains. The rebound in U.S. stock indexes, particularly in big tech shares, played a role in this recovery. The performance of Hong Kong's Hang Seng index and Shanghai Composite index was not as positive, experiencing declines. Meanwhile, South Korea's Kospi index dropped after the Bank of Korea decided to keep its benchmark rate unchanged.

In Tokyo Index Sees Gains, the Nikkei 225 index showed a positive performance, rising by 0.4% to reach 39,609.60. The dollar stood at 153.23 Japanese yen, slightly lower than the 34-year high of 153.32 yen it had reached earlier in the week on Wednesday.

However, Hong Kong's Hang Seng index faced a decline of 1.7% and settled at 16,826.98. Similarly, the Shanghai Composite index also experienced a slight decrease of 0.1% and settled at 3,032.22. China's trade data for March was expected to be released later in the day.

South Korea's Kospi index shed 0.7% and reached 2,686.89 following the Bank of Korea's decision to maintain its benchmark rate unchanged at 3.50%.

On Thursday, the S&P 500 rose 0.7% to 5,199.06 and recovered most of its prior loss, caused by worries that interest rates may stay high for a while. The Nasdaq composite charged up by 1.7% to a record 16,442.20. The Dow Jones Industrial Average, which has less of an emphasis on tech, was the laggard. It slipped less than 0.1% to 38,459.08.

Apple was the strongest force pushing the market upward, and it climbed 4.3% to trim its loss for the year so far. Nvidia was close behind, as it keeps riding a frenzy around artificial-intelligence technology. The chip company rose 4.1% to take its gain for the year to 83%. Amazon added 1.7% and set a record after topping its prior high set in 2021. .(Source: Hong Kong/AP News)

Photo by Ahn Young-joon/ AP Photo.

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Zooming out to a longer-term perspective, the performance of the S&P 500 becomes even more remarkable. Since 2004, the index has nearly quadrupled in value, while the MSCI has only experienced a 48% increase. One of the key drivers behind this trend is the faster earnings per share growth of U.S. companies compared to the broader global market.

According to Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute, the main factor contributing to the outperformance of U.S. markets is the significantly faster earnings per share growth. Over the last 17 years, earnings for the S&P 500 have grown nearly 47 times more than the broader global market.

This robust earnings growth can be attributed to various factors, including the resilience and innovation of U.S. companies, favorable economic conditions, and investor confidence. The U.S. market has proven to be a fertile ground for businesses to thrive and generate substantial profits, attracting both domestic and international investors.

Furthermore, the U.S. market benefits from a diverse range of industries, including technology, healthcare, finance, and consumer goods, which have demonstrated consistent growth and profitability. These sectors have been at the forefront of innovation and have capitalized on emerging trends and technological advancements.

Earnings growth overall for companies in the S&P 500 is expected to jump 11% in 2024, following nearly 2% growth in 2023 and 4.5% growth in 2022. Strong consumer spending and a solid jobs market have been fueling the U.S. economy, despite stubbornly high inflation and high interest rates making it more difficult to borrow money.

The U.S. economy has historically been far more consumer-driven than counterparts in Europe and Asia, helping to fuel steady earnings growth for U.S. companies over a longer period of time. Stock buybacks have also steadily increased over the last few decades, which tends to inflate earnings. Also, big tech companies typically dominate the movement of the S&P 500 and their profits have skewed growth for the benchmark index.(Source: New York/AP News)

U.S. stocks experiencing significant growth, surpassing global markets

March 23, 2024, 3 Minutes Read

In recent years, the U.S. markets have consistently outperformed their global counterparts, continuing a decade-long trend of strong growth compared to the rest of the world. This trend is evident in the performance of the S&P 500, which has seen significant gains compared to developed markets outside the U.S.

Year-to-date, Impressive Growth ofthe S&P 500 has surged by 10%, while developed markets outside the U.S. have only seen a modest 4% increase. Looking back to 2019, the S&P 500 has recorded an impressive 48% gain, overshadowing the meager 10% growth of other developed markets, as reported by the MSCI, a benchmark of global stocks.

Photo by Craig Ruttle/ AP Photo.

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The benchmark Nikkei 225 index in Japan witnessed a significant surge on Thursday, surpassing the record it had set in 1989 before the burst of its financial bubble. Closing at 39,098.68, the index recorded a 2.2% increase, surpassing its previous record of 38,915.87, which was set on December 29, 1989. This remarkable achievement brings the index back to its position of 34 years ago, during the height of Japan's post-war boom.

However, unlike the previous era of economic growth, the current situation presents a different landscape. Japan's economy is currently facing the challenges of a recession, and the discussion around a financial bubble is absent. Preliminary measures of exports, manufacturing, services, and other key indicators released on Thursday indicate a continued weakening of the economy.

It is important to note that after reaching its peak in 1989, the market experienced a significant decline as banks wrote off approximately 100 trillion yen in bad debts. This downturn had a profound impact on the Japanese economy, leading to a prolonged period of economic stagnation. Share prices remained well below the record for many years — dipping below 7,000 at one point before a series of market-boosting measures championed by the late Prime Minister Shinzo Abe in 2013 began nudging them higher.

Foreign investors' strong interest in computer chip-related shares helped drive Thursday's rally, with Tokyo Electron, Advantest and SoftBank Group all up.

Japan's benchmark rate has remained at minus 0.1% for over a decade, with the Bank of Japan using easy money policies to spur inflation and push growth higher.

Share prices in Tokyo have risen 15% in the past three months and 44% in the past year. In Shanghai, prices have fallen more than 11% from a year ago, while Hong Kong’s Hang Seng index is down about 22%. Record gains in corporate earnings for Japanese companies and improved corporate governance have enhanced the appeal of shares in Japanese companies.

Foreign investors have plunged in, seeking bargains to be had given the yen’s weakness against the U.S. dollar. Experts say Japan’s shares are not overpriced and the price-to-earnings ratio for the Tokyo market is about 16, compared to 23 for the S&P 500, 24 for India’s Sensex, and 8 for Shanghai. In 2023, investors in Tokyo shares earned a return of more than 28%. In China, markets have never fully recovered from a meltdown in 2015 that wiped out trillions in value.

The global economic landscape has undergone substantial changes over the past few decades, and Japan's journey since the burst of its financial bubble has been marked by various economic reforms and attempts to stimulate growth. Despite the prevailing recession, the Japanese government and policymakers continue to explore avenues to revive the economy and address the current challenges.(Source: AP News)

Japan’s Nikkei stock index reached an all-time high since 1989

February 23, 2024, 2 Minutes Read

Photo by Eugene Hoshiko/AP

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Aklan leads as fastest developing economy among provinces

February 9, 2024, 2 Minutes Read

AKLAN, Philippines- The Philippine Statistics Authority (PSA) has detailed that Aklan Area is the quickest developing economy among regions and exceptionally urbanized urban communities in the country.

The Province of Aklan, known for being the home of Boracay Island, recorded a significant GDP (Gross domestic product) development of 22.5 percent in 2022, far surpassing the national economic growth rate of 7.6 percent.

The area's Gross domestic product rose to P63.57 billion of every 2022 from P51.89 billion the earlier year

Services, which cover its tourism sector,, ruled the region's economy, representing 75.4 percent of the aggregate, while Agriculture, forestry, and fishing held a 12.7 percent to offer, and Industry involved 11.9 percent.

Following Aklan, Puerto Princesa City posted a financial development of 14.7 percent, while Tacloban City's GDP reached at 13.8 percent.

Lapu-Lapu City (13.2%), Nueva Vizcaya (13.1%), Davao Oriental (12.3%), Sorsogon (12.2%), Batanes (11.5%), Zambales (11.3%), and Baguio City (11.3%) round out the PSA's top ten list. (Source: Chino Leyco/ MB)

Source: Philippine Statistics Authority

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Banks soured loans bounced in 2023 in the midst of high rates

February 9, 2024, 2 Minutes Read

MANILA, Philippines- Local banks’ bad loans surged in 2023 compared to the preceding year after some borrowers struggled to repay their debts due to a high interest rate environment.

Gross nonperforming loans (NPL), or bank credit that remained unpaid at least 30 days past the due date, jumped by 12.1 percent year-on-year to P446.99 billion as of end-December last year, according to latest data from the Bangko Sentral ng Pilipinas (BSP).

This meant 3.23 percent of banks’ total loan portfolio had soured by the end of 2023, slightly higher than the 2022 ratio of 3.16 percent.

The BSP’s benchmark rate, which banks typically use as a guide when charging interest rates on loans, is currently at 6.5 percent, the highest in 16 years.

To protect their balance sheets from the increase in unpaid loans, banks’ allowance for credit losses amounted to P456.5 billion by the end of 2023, up by 7 percent year-on-year. A projected decline in soured debts would lessen the need for banks to beef up their buffers against potential losses from unpaid loans.(Source: Inquirer.Net)

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