By Mark Whitehouse – U.S. President-elect Donald Trump has given the world ample reason for concern about what the new year might look like. So far, though, financial markets appear to be assuming that everything will be awesome.
So why the optimism?
Trump has promised a major fiscal stimulus, including investment in infrastructure, that the Organization for Economic Cooperation and Development estimates might add 0.4 percentage point to U.S. economic growth in 2017 (and more than 0.8 percentage point in 2018). Together with the corporate-tax cuts that the president-elect has also proposed, this could improve corporate profits, justifying higher stock prices and lower default-insurance costs.
That said, much depends on the execution. Trump’s plans remain sketchy, and could go terribly wrong in myriad ways. Right now, markets seem to be placing a very low probability on such an undesirable outcome — at least in the short term. If they prove wrong, 2017 might be a very interesting year indeed. more> https://goo.gl/Yg9fM8
Posted in Business, Economy, Leadership, Media, Net
Tagged Business, Capital, Donald Trump, Government, Jobs, Leadership, United States
By Tomas Kellner – Last year, Indian Railways (IR) awarded GE Transportation a contract to build 1,000 new diesel-electric locomotives. These next-generation machines will start the process of upgrading the IR’s 5,000 older engines — mostly from the 1970s and 1980s — that currently haul freight over its railroad network. The state-run railroad operator, which holds a 26 percent stake in the joint venture, had already had Marhaura in mind.
It typically opens new factories in underserved parts of the country. For example, GE also is building a maintenance shop for the new locomotives in Roza, Uttar Pradesh, a town in another populous state racing to catch up to the rest of the country. France’s Alstom, which won a large contract from IR for electric locomotives at the same time as GE, is building in Bihar. “They want these contracts to be catalysts for economic development,” says Nalin Jain, the CEO of GE’s Transportation and Aviation businesses in the country.
The team designing the locomotive sits at the Indian outpost of GE Global Research in Bangalore. The machine will be based on GE’s Evolution-series locomotives, which are best in class on fuel efficiency and emissions, but it will have to meet specific local requirements. For example, the six-axle locomotive can only weigh 22 tons per axle, while its heavier American cousins typically clock in between 25 and 30 tons. “You are talking about taking out as much as 48 tons for the whole locomotive,” Jain says. “That’s a lot of weight.” more> https://goo.gl/qUhBc2
Posted in Business, Economic development, Economy, Product, Technology, Transportation
Tagged Business improvement, GE, Government, India, Industrial economy, Locomotive, Technology