All information relating to stock markets, asset management, exchange traded funds, bonds, debt funds, investment banking, mergers and acquisitions, can be considered to be Financial news.
This information is conveyed in many cases in real time. It relates to the profitability of businesses. Factors that affect this profitability are discussed in such data. Impacts of factors such as the discovery of oil, or war in the Middle East on sectors such as the petroleum industry are also discussed along with any such news.
They also include the latest information relating to all monetary, economic and currency markets. Legislations and tax policies likely to affect financial markets also form part of this information. Likewise production data of any raw material, and other factors such as inflation, and interest rates that can affect the profitability of any industry are deemed an integral part of such information.
Imports, exports, contracts, drug approvals, legal disputes and related aspects are some of the other matters reported under such news. Reports relating to trends in the financial markets within the country and abroad is also considered as financial news. Therefore, both macro economic factors and micro economic factors form part of such information.
While interest rates and inflation are important to the industry, they are not the only factors that affect businesses. However, business enterprises do watch inflation closely because this would affect the way the central bank of the country, and the government would react. Generally, the central bank of the country tends to increase interest rates when inflation is high, which will have an impact on the finances of enterprises.
Bank news is mostly related to inflation, bank’s profitability, interest rates, performing and non-performing assets, liquidity in the system, growth in borrowing, and similar banking factors. Banks use interest rates as a tool to curb inflation. Inflation implies that people have more money in their hands, and there are not enough goods for them to buy. This makes them compete for limited goods, and in the process it increases the price of goods. This is, of course, an artificial situation and temporary one. This situation needs to be controlled. That is one of the functions of banks.
Bank related reports can also relate to the foreign exchange rates and the policies adopted by the bank to stabilize these rates. Banks’ reserves are important as well. This includes gold and other currencies. Trends in financial markets have an impact on bank news and vice versa. If interest rates are increased to tame inflation, industries are not able to raise required finance to meet their requirements.
Alternately, they may have to pay more interest. This affects their profitability. They may add these costs to the product and try to pass the burden to the customer. However, customers may not be willing to buy the product at that rate, and even exports may come down. If exports drop, the country’s foreign exchange reserves dwindle, leading to lower valuation of the country’s currency. Hence, ultimately all such data is interlinked.
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