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Tuesday, 24 May 07:45 (GMT -05:00)



Business And Politics News

Greek issues push price up


Exchange news. The issue of possible default in Greece is extremely topical. Last weekend Athens officially claimed that the country cannot cut its expenditures, as required by the agreements. This, in its turn, casts doubt on the possibility of Greece to receive mutual assistance credit from European Central Bank.

This discouraging claim was followed by a less shocking claim from the European Union management. To be more specific, this claim concerned a temporary suspension with deciding to provide another money tranche to Athens. It had been expected that the decision of providing financial aid would be announced during a special meeting on October 13, but it has just been revealed that there will be no meeting. The decision of providing money trance is expected to be announced during the summit of European Union leaders on October 17.

Unfortunately, this proves that this year Greece is unable to change budget deficit according to the requirements. However, Athens keep worsening their condition by discussing economy measures with ECB, as their main target is to receive 8 mln. Euro from the credit that was confirmed in 2010. Another wave of recession is likely to start because of complicated and lasting negotiations between ECB and Greece. Quotations of Brent and WTI oil futures have immediately reacted to this by a more than 1 dollar decline.

Perspectives of economic growth influence oil price. At this point, signals about countries’ negative development are many. It concerns countries in Europe, the USA, and developing countries, such as China, which eased the loss of world economy in 2008.

Brent grade oil prices are currently checking the support of 101 dollar per barrel, as explained by the analytics of Forex Academy and Masterforex-V Futures Trade and Stock Exchange. This is the fourth attempt for 5 months. Passing the level will make it possible to reach the target of 90 dollars per barrel.

 

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Another Interest Rate Hike by the Fed Expected In June

Some representatives of the international expert community remind us that the Fed is going to go back to discussing the possibility of another interest rate hike in the near future. This discussion is going to take place during the forthcoming FOMC meeting in June. They say that the markets are wrong when expecting the same interest rate for the 4th month in a row.

Publication date: 17 May 05:42 PM

Saudi Arabia Wants Less Dependence On Crude Oil

Not so long ago, a representative of the Saudi King’s was reported to have introduced a new development plan for Saudi Arabia until the year of 2030. It is named Vision 2030. The plan reveals the local authorities’ intention to introduced some fundamental changes to the country’s economy and financial system. They are aware of the serious dependence on crude oil exports, which is why they want to reduce this exposure to the international market of crude oil by making the local economy more diverse and less dependent on the local oil industry, especially amid still low oil prices and great uncertainty dominating today’s financial markets in general and the global oil market in particular.

Publication date: 04 May 11:12 AM

Fed Leaves Interest Rate Unchanged

The members of the Fed’s FOMC left the key interest rate unchanged at 0,25%-0,5% during the latest meeting last week. This is confirmed by the FOMC meeting minutes. To be more specific, the minutes read that the information received since the March meeting clearly indicates that the contemporary labor market is definitely improving and recovering despite the likelihood of another economic slowdown in the USA.

Publication date: 03 May 05:07 PM

Saudi Arabia Ready to Reduce Oil Dependence

Not so long ago, a representative of the Saudi King’s was reported to have introduced a new development plan for Saudi Arabia until the year of 2030. It is named Vision 2030. The plan reveals the local authorities’ intention to introduced some fundamental changes to the country’s economy and financial system. They are aware of the serious dependence on crude oil exports, which is why they want to reduce this exposure to the international market of crude oil by making the local economy more diverse and less dependent on the local oil industry, especially amid still low oil prices and great uncertainty dominating today’s financial markets in general and the global oil market in particular.

 

Publication date: 03 May 10:03 AM

Saudi Arabia’s Oil Games May Be Dangerous to Both Russia and USA

According to Andrey Gudkov, an observer for Deutsche Welle, the oil games played by Saudi Arabia may present danger to Russia and the USA. The be more specific, the observer says that the Saudis are playing dangerous oil games. They have been playing similar games in security and politics. Now they are playing those in macroeconomics. For instance, it was Saudi Arabia who intentionally disrupted the recent oil summit in Doha. On top of that, the Saudis announced their intention to sell tons of U.S. bonds to a stunning amount of $750 billion. Such unexpected steps may undermine financial markets worldwide and eventually affect a number of major and emerging economies, including Russia and the USA.

Publication date: 22 April 09:26 AM

Brexit May Cost EU 5% GDP

As you probably know, it is still unclear whether the UK is going to stay an EU member. The local officials seem to be against the so-called Brexit. However, the plain folks are going to make the final decision. The thing is that the authorities are going to conduct a Brexit referendum to let the people decide whether to stay in the European Union or quit it.
 
Publication date: 07 April 12:11 PM

Low Oil Prices Affect the Suez Canal

Low oil prices undermined the status of the Suez Canal. They say most ships find it cheaper to sail around Africa rather than sailing through the Suez Canal.  Some market observers believe that the oil market crash resulted in multiple consequences. On top of billions of dollars of lost profits by the world's biggest oil exporters, sailing around Africa is no said to be cheaper than saving time by passing through the Suez Canal.

Publication date: 07 April 08:19 AM

Chinese Economy Recovers Faster Than Expected, HSBC Says

According to HSBC experts, the Chinese economy has stabilized and is on its way to recovery. On top of that, the experts say that the recovery is accelerating and getting faster than expected. To be more specific, the latest economic figures coming from China shows that there is a considerable improvement going on in there.
 
Publication date: 07 April 06:34 AM

IMF Says Global Economy In Jeopardy

The IMF warns about growing risks form the entire global economy, which may end up with a crash. The Fund urges international politicians and financial authorities to start taking urgent steps to stimulate demand and consumption.  
 
Publication date: 07 April 06:16 AM

Russian Central Bank Loads Up On Gold Heavily

Russia’s central bank is reported to have been buying gold at an unprecedented rate. To be more specific, the IMF reports that the central bank purchased 11 tons of gold last month. Given the fact that the People’s Bank of China is still number one in terms of buying gold, the Central Bank of the Russian Federation comes second after its Chinese counterpart. Still, some experts say that the gold purchase stats provided by the People’s Bank of China cannot be seen as reliable since there is no transparent way to confirm those stats. With that being said, Russia may be close to be the biggest buyer of gold to date.
 
Publication date: 06 April 10:44 AM