Posts Tagged ‘trade’

Oil slick

http://www.FT.com/ The oil price has fallen 30 per cent, from $125 in March to $90 now, with the price of Brent crude hitting an 18-month low last week. Javier Blas, commodities editor, tells John Authers, senior investment columnist, that the falling price isn't a bubble bursting - the market is simply rebalancing

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Upswing In Chinese Lending Beats Economists’ Expectations

Chinese banks are ramping up their lending to retain the country's pace of growth in the face of a listless global economy. Chinese financial institutions issued 793.2 billion yuan ($125 billion) in May up from 682 billion yuan in the previous month, stepping up lending by 16.3 percent, according to data released Monday by the People's Bank of China . The upswing outpaced economists' expectations

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India May Be First of the BRIC Economies to Skid Back Into Junk Status

India may be the first of the so-called BRIC emerging market nations to lose its investment grade debt rating, according to a report published today by Standard & Poor's. The ratings company said India 's slowing growth and political gridlock could hamper efforts to liberalise Asia's third largest economy and potentially put its BBB- rating, which was set in April of this year, at risk of a downgrade into sub-investment grade, or junk, status. "The combination of a weakening political context for further reform, along with economic deceleration, raises the risk that the government may take modest steps backward away from economic liberalization in the event of unexpected economic shocks.

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Iata Warns Airlines of Worsening Eurozone Crisis and Oil Price Rise Risks

The International Air Transport Association (Iata) has warned the aviation industry that Europe's sovereign debt crisis will worsen and rising oil prices, coupled with political risk, could threaten to  wipe out airlines' profits over the coming year . "The biggest and most immediate risk, however, is the  crisis in the eurozone ," said Tony Tyler, director general at Iata during the Geneva-based group's annual meeting. "If it evolves into a banking crisis we could face a continent-wide recession dragging the rest of the world and our profits down

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European Crisis Live: Spanish Rescue Lifts Euro, Markets Ahead of Greek Elections

0900 BST: Italy shrinks Italian GDP is confirmed to have contracted 0.8 percent in the first three months of this year, while the year-on-year contraction was marginally wider at -1.4 precent, according to the National Statistics Office. 0855 BST: What about us? An interesting dimension to the Spanish bailout (I think most journalists are enjoying going "off message" in using this term) is the impact it may have on both Greece and Ireland

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More Americans On The Road This Summer Brings Dollar Signs To The Gulf Coast

As the U.S. economy remains in the doldrums and the rise in oil prices has finally stalled – which means cheap, or at least cheaper, gas – America’s Dixie Coast could be in for a very lucrative summer, extending a rebound that began last year.

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Dubai’s debt burden

http://www.FT.com/ After crashing at the height of the financial crisis, Dubai's real estate sector is staging a sustained recovery by refocusing on trade, tourism and transportation. However, victims of the property bubble remain, shedding an uncomfortable light on the city's legal system

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Merkel Seen Easing Stance Against Aid For Struggling Banks

German Chancellor Angela Merkel appears to have altered dramatically her long-held opposition to euro zone nations sharing responsibility for the debts of the monetary union's most troubled banks. Specifically, Merkel hinted Monday that she would be amenable to supporting a "bad bank" bailout structure, in which the most toxic part of bank balance sheets would be pooled, bought by the European Central Bank (ECB) or some other international institution, and wound down over a 25-year horizon.   The hint of a change in Merkel's position is key because Germany , the euro zone's No

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Euro Crisis Forcing Central Bankers Outside Euro Zone Into Uncomfortable Stances

Except for a few notable exceptions in the fringe financial blogosphere, no one has ever said the job of a central banker is a simple one. Inscrutable, unelected and independent of higher oversight, these technocrats hold positions atop tremendously powerful government institutions. As such, the national masters of the coin are generally also masters at adopting whatever professional hat is necessary to deal with the situation in front of them. Sometimes they're econ professors, investment bankers, speculators, policy wonks, government PR managers or national punchlines

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Global Markets Improve As G7 Holds Emergency Meeting

Markets across the globe kicked off on a high note on Tuesday as Asian shares and the euro rebounded from their lows. Investors will be looking forward to European policy makers for concrete actions to tackle the eurozone crisis at the G7 emergency talks on Tuesday

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