Posts

Showing posts with the label World Economy

News | Business | World Economy: OECD projects global GDP will collapse by 4.5% this year

Image
  Silvia Amaro 2-3 minutes - Source: CNBC Posters in the window a a closing-down shop advertise a “Stock Liquidation” in Manchester, northern England on August 12, 2020. Paul Ellis | AFP | Getty Images The global economy has performed better-than-expected but it is still on track for an “unprecedented” decline in output, the Organization for Economic Cooperation and Development warned Wednesday. In its latest economic outlook, the OECD said the world economy will contract by 4.5% this year — an upward revision from an estimate made in June that pointed to a 6% fall in gross domestic product (GDP). “The drop in global output in 2020 is smaller than expected, though still unprecedented in recent history,” the OECD said in its report. Going forward, the OECD expects the global economy to grow by 5% in 2021. Nonetheless, the outlook “remains exceptionally uncertain” due to the coronavirus pandemic. Critically-hit sectors, such as th

News | Business | World Economy | Oil: Rise in Covid-19 cases will weigh on demand for oil, warns IEA

David Sheppard 2minute - Source: FT The International Energy Agency has revised down its forecasts for oil consumption this year and next as a recovery in global demand slows. The Paris-based agency said global oil demand would average 91.9m barrels a day in 2020, down 8.1m b/d year on year and 140,000 b/d lower than last month’s forecast. The IEA’s 2021 demand forecast was lowered by 240,000 b/d to 97.1m b/d, a level still about 3m b/d below the pre-crisis peak. In its monthly report the IEA said it was “the first downgrade in several months, reflecting the stalling of mobility as the number of Covid-19 cases remains high and weakness in the aviation sector”. “Recent mobility data suggest the recovery has plateaued in many regions, although Europe, for now, remains on an upward trend. For road transport fuels, demand in the first half of 2020 was slightly stronger than anticipated, but for the second half we remai

News | World Economy | China: Is China using a weak soybean demand and adequate supply as an opportunity to halt U.S. imports?

Image
Huileng Tan 3-4 minutes - Source: CNBC Farmer John Duffy loads soybeans from his grain bin onto a truck before taking them to a grain elevator on June 13, 2018 in Dwight, Illinois, United States. Scott Olson | Getty Images News that Beijing has ordered state firms to halt purchases of farm products could well be an opportunistic political maneuver stemming from fundamental weakness on the demand side in China, said analysts. On Monday, Reuters reported that China has asked main state firms to suspend large-scale purchases of major U.S. farm products like soybeans and pork. That came in response to President Donald Trump, who said last week he would strip Hong Kong of its special status with the U.S. But soybean demand has not been strong in China anyway. “Partly, it’s because of the the virus outbreak (that) actually impaired the logistic arrangements between China and the U.S., and also after the virus outbreak, what w

World Economy | Japan: Japan falls into recession as virus takes its toll

Image
4-5 minutes - Source: BBC Image copyright Getty Images Japan has fallen into recession for the first time since 2015 as the financial toll of the coronavirus continues to escalate. The world's third biggest economy shrank at an annual pace of 3.4% in the first three months of 2020. The coronavirus is wreaking havoc on the global economy with an estimated cost of up to $8.8tn (£7.1tn) . Last week, Germany slipped into recession as more major economies face the impact of sustained lockdowns. Japan did not go into full national lockdown, but issued a state of emergency in April which severely affected supply chains and businesses in the trade-reliant nation. The 3.4% fall in growth domestic product (GDP) for the first three months of 2020, follows a 6.4% decline

World Economy | China: Global funds invest more in China as coronavirus spreads to the rest of the world

Image
Evelyn Cheng 5-7 minutes - Source: CNBC Market dislocations triggered by the coronavirus crisis have sent more capital into Chinese stocks — and some strategists see this as part of a longer-term trend. “We’re finding that a lot of foreign managers globally (are) reshuffling their holdings in this turmoil,” Todd Willits, head of flow tracking firm EPFR, said in a phone interview in late April. “Allocations to China are something people are looking to increase.” As U.S. stocks plunged to three-year lows in March, allocation to Chinese stocks among more than 800 funds reached nearly a quarter of their nearly $2 trillion in assets under management, according to fund flow data from EPFR. That’s up from about 20% a year ago, and roughly 17%   six years ago. The data covers funds that breaks down holdings into nine categories of stocks listed in mainland China, Hong Kong, Taiwan, the U.S. and Singapore. Officially called Covid-1

World Economy: South Africa looks to structural reforms as it loses its last investment-grade credit rating

Image
Elliot Smith 5-6 minutes - Source: CNBC PRETORIA, SOUTH AFRICA - MARCH 16: Finance minister, Tito Mboweni briefs the media on the details of government interventions in various sectors of the departmental portfolios on COVID-19 at DIRCO Media Centre. Phill Magakoe/Gallo Images via Getty Images South Africa has lost its last remaining major investment-grade sovereign credit rating, as existing economic weakness is compounded by the potential impact of the global coronavirus pandemic. South Africa has no investment-grade sovereign credit rating from any of the major ratings agencies for the first time since its return to global markets in 1994. Moody’s announced on Friday that it had cut the country’s last investment-grade rating to “junk,” sending the Rand to an all-time low of below 18 to the dollar. Standard & Poors and Fitch both downgraded Africa’s most industrialized economy to sub-investment grade in 2017. In i

World Economy: The US and China will provide the main support to the world economy and financial markets

Image
Dr. Michael Ivanovitch 5-6 minutes - Source: CNBC China’s President Xi Jinping and US President Donald Trump during a meeting outside the Great Hall of the People in Beijing. Artyom Ivanov | TASS | Getty Images The United States, China and the European Union account for one half of the world economy. With the magnitude and scope of their trade and financial flows, those three large economic systems are fully capable of setting the pace of global business cycle dynamics – especially if they effectively coordinate their demand management policies. Unfortunately, the policy coordination issue is an old pious wish, despite the fact that the G-20 had been set up precisely for that purpose. So, as always, the U.S. will continue to be the pace-setter of the global economy at the cost of its half-a-trillion dollar trade deficits serving as net contributions to jobs and incomes in the rest of the world. The U.S., however, is in no position to do that, but