Economy: Oil prices in reverse amid Opec call

The Opec has called a co-operation among their members and non-members countries to tackle the fall of Oil prices.

The Opec Secretary-General Abdullah al-Badri said both Opec and non-Opec oil producers needed to tackle oversupply to help prices rise.

“It is vital the market addresses the issue of the stock overhang. As you can see from previous cycles, once this overhang starts falling then prices start to rise,” he told a conference in London.

Despite the ongoing refusal of Saudi Arabia, the dominant Opec member, to cut production, Mr al-Badri nevertheless blamed countries outside the cartel for the huge global oil glut.

“Yes, Opec provided some of the additional supply last year, but the majority of this has come from non-Opec countries,” he said.

Conclusion: Cheaper oil, failed countries.

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Asia: China economic growth slowest in 25 years

The Chinese economy has grew 6.9% in 2015. It’s a slowest growth in 25 years. Premier Li Keqiang has said weaker growth would be acceptable as long as enough new jobs were created.

But some observers say its growth is actually much weaker than official data suggests, though Beijing denies numbers are being inflated.

Analysts said any growth below 6.8% would likely fuel calls for further economic stimulus. Economic growth in the final quarter of 2015 edged down to 6.8%, according to the country’s national bureau of statistics.

The news comes as the International Monetary Fund said it expected China’s economy to grow by 6.3% this year and 6% in 2017.

Beijing had set an official growth target of “about 7%”.

Conclusion: China and their economic troubles.

 

Economy: Trans-Pacific free trade deal agreed creating vast partnership

The largest free trade deal has reached it today. Trans-Pacific free trade will create a new economic bloc with reduced trade barriers between the 12 nations involved such as US, Japan, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

US president Barack Obama said in a statement that the deal “reflects America’s values and gives our workers the fair shot at success they deserve”.

“When more than 95 percent of our potential customers live outside our borders, we can’t let countries like China write the rules of the global economy,” he said.

“We should write those rules, opening new markets to American products while setting high standards for protecting workers and preserving our environment.”

Japanese Prime Minister Shinzo Abe told reporters the deal was a “major outcome not just for Japan but also for the future of the Asia-Pacific”.

Conclusion: China is very worried now.

Economy: Markets fall on disappointing September US jobs figures

Stock markets is in turmoil. Figures released today by US Labor department shows economy added just 142,000 jobs in September, lowering the chance of an interest rate rise this year.

The figure was far lower than the 205,000 increase forecast by economists.

The number of jobs created in July and August were revised down by a combined 59,000.

Wall Street opened sharply lower, with the Dow Jones and S&P 500 indexes both down about 1.3%.

The many reasons like US rises rates and China slowdown.

Conclusion: Investors are very nervous now.

India: Jaitley unveils budget to boost investment

Indian Finance Minster Arun Jaitley unveils the first government budget. He announces unprecedented corporate tax cut and proposes major benefits for the poor, introducing a universal social security scheme.

The main budget terms are:

  • Five “ultra mega” power projects of 4,000 megawatts (MW) will be built to ease the energy crisis
  • Spending on infrastructure will be raised by $11.3bn (£7.32bn) to boost growth
  • Creating a “universal social security” that would give poor Indians access to subsidised insurance and pensions
  • Implementation of a uniform countrywide goods and services tax (GST) by April 2016
  • Welfare money to be paid directly into people’s bank accounts to eliminate corruption and wastage
  • Wealth tax to be abolished and replaced by a surcharge on the super rich
  • Corporate tax to be cut by 25% over next four years

Spoke to parliamente, Jaitley said the country was growing at a strong rate, inflation was down and foreign exchange reserves were high.

“We inherited a sentiment of doom and gloom. The investment community had almost written us off. We have come a long way since then,” he said.

“We have turned around the economy, dramatically restoring macroeconomic stability and creating the conditions for sustainable poverty elimination, job creation, durable double digit economic growth.”

India could be growth 8% on 2015-2016, says analysts.

What’s it means: India put fears on China with their accelerate growth.

Economy: Greece ‘rejects EU bailout offer’ as ‘absurd’

Stock markets are living in economic turmoil. So, Greece reject the EU bailouy offer during talks in Brussels. The International Monetary Fund (IMF) and European Union (EU) say there should be no change to the conditions of the €240bn (£178bn) loan.

A Greek official said there would be no deal today, but talks are continuing.

“Some people’s insistence on the Greek government implementing the bailout is unreasonable and cannot be accepted,” Reuters quoted the official as saying.

“Those who keep returning to this issue are wasting their time. Under such circumstances, there cannot be a deal today.”

Many EU Finance Minister was very realist with it.

German finance minister Wolfgang Schaeuble had already said he was not optimistic a deal would be reached.

Mr Schaeuble told German radio: “The problem is that Greece has lived beyond its means for a long time and that nobody wants to give Greece money any more without guarantees,” Mr Schaeuble said.

But French Finance Minister Michel Sapin said European leaders needed to respect the political change in Athens. As he arrived in Brussels he urged the Greeks to extend their current deal to allow time for talks.

The current bailout expires on 28 February.

However, Greeks approves the conduct of new government in relation of bailout talks.

Greek Prime Minister Alexis Tsipras told Germany’s Stern magazine at the weekend that his government needed time to carry out reforms and put the mismanagement of the past behind it.

“I expect difficult negotiations; nevertheless I am full of confidence,” he said. “I promise you: Greece will then, in six months’ time, be a completely different country.”

Conclusion: More tension on stock markets until 28 February