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Thursday, 18 October 19:44 (GMT -05:00)



Business And Politics News

The Era of Cheap Money from Central Banks is Over


According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.
 
The thing is, the global economy has been growing faster than ever since 2011. This is expected to make the central banks raise the key interest rates by at least 1%, which is something we haven’t seen since 2006. That said, in 2018 we are going to see true monetary toughening, Citigroup experts are convinced.
 
Citigroup expects the Federal Reserve to raise the rates at least 3 times throughout 2018. All in all, they expect the Fed’s rates to be increased by at least 2 percent points, which is something we haven’t seen since 2008. At the same time, the central banks of Great Britain, Australia, New Zealand, Sweden , and Norway are expected to rise their rates by at least 1 percent point. All in all, the central banks from developed economics are expected to raise the rates by 0.4-1 percent point on average.

JPMorgan goes beyond those predictions. They expect the Fed's rates to be raised at least 4 times in 2018 – 1,2 percent points in total. The last time the rates grew that fast in 2006 before the global crisis.

At the same time, the name a few price bubbles that are going to hit the global financial market in 2018. One of them is Bitcoin, the world’s first and most expensive cryptocurrency that has already grown by 1800% this year.

Other experts say that it's the U.S. stock market that’s going to be the reason for the expected interest rate hikes in 2018. The thing is, the market cap has increased by 1600% over the last 9 years. Also, there is a group of experts who put the blame on the credit boom in China while the Chinese public debt is 3 times as high as the Chinese GDP.
 

 

Since the 2008-2009 financial crisis, all the central banks altogether have cut their interest rates more than 700 times and has pumped into the global economy over 16 trillion dollars.

 

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Crude Oil Prices May Reach $100/b

Ever since the United States imposed new sanctions on Iran, other oil exporters have been trying to make up for the decline in the international oil supply. Some experts are now predicting a strong trend all the way up to $100 per barrel. 

Publication date: 25 September 11:51 AM

New Anti-Russian Sanctions Will Slow Russian Economy Down, Kudrin Says

The new package of anti-Russian sanctions is expected ot be imposed by the United States in November. Apparently, this is not expected to become a disaster ofr the Russian economy, but it still may slow down the economic growth in Russia as well as the the flow of foreign investments to the country. This is what ex-Finance Minister of Russia Alexey Kudrin thinks on the matter.

Publication date: 19 September 12:10 PM

Cryptomarket Quickly Recovered From the SEC's Decision

The global market of cryptocurrencies quickly recovered from the downtrend after the SEC decided to ban the creation of Bitcoin ETFs.

Publication date: 24 August 10:00 AM

Ulysse Nardin Watch in Elite Lombard: Quality Dictated by Time

Elite Lombard has been operating in Moscow since 2003. It was founded by a team of experts with many years of expertise in the industry.

Publication date: 21 August 07:47 AM

Trump is Isolating the USA from the Rest of the World

Fareed Zakaria has commented on the content of today's external policy of the United States. He claims that President Trump's ambiguous decisions have been pushing the United States away form the rest of the world.

Publication date: 13 August 11:38 AM

Business Circles Stand Still Waiting for Fed's Decision

On July 31st - August 1st, Washington is to host another FOMC meeting. For those of you who don't know FOMC is a Fed committee. The entire business and investment world is now looking forward to the result of this FOMC meeting. The key question is whether the Fed is going to keep on toughening its money-and-credit policy. The answer will be revealed later on Wednesday.

Publication date: 31 July 12:05 PM

Fitch Downgrades Economic Forecast for Russian Economy

An international rating agency named Fitch has downgraded the economic forecast for the Russian Federation. In particular, the experts working for the international agency assume that the Russian economy will grow by 1,8% this year. The previous forecast used to be 2% in 2018. The economic forecast for the next year has dropped from 2% down to 1,9%. In 2020, the Russian economy is believed to gain only 1,5%. The long term forecast is also bearish – 1,2% a year on average.

Publication date: 28 June 12:51 PM

When it comes to trade, EU is worse than China, Trump says

Not so long ago, President Trump said that the European Union is worse than China, when it comes to trade relations. This is reported by Axios with reference t anonymous sources. They say this comparison was made during President Trump’s conversation with French President Emmanuel Marcon back in April 2018. Back then, the 2 leaders were discussing the Chinese issue. Macron urged Trump to unite forces with Europe to resist China since China is a trade problem for everyone. 
 
Publication date: 27 June 11:07 AM

Trump Turned G7 Into G6+1

The British media are criticizing Donald Trump's stance and behavior during the recent G7 summit in Quebec, Canada. 

Publication date: 13 June 12:02 PM

G7 Is Ready to Impose New Sanctions on Russia

In the final communique of the recent G7 summit in Quebec, Canada, there is warning for Russia. In particular the G7 warns Moscow that they are ready to impose even more sanctions on Russia in case of further aggression. 

Publication date: 12 June 11:44 AM