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China’s Devaluation of Its Currency Was a Call to Action

Photo Across China, millions of workers and thousands of companies are feeling the pain of the country’s slowing economy, as sales slip and incomes drop. Credit Adam Dean for The New York Times HONG KONG — When Prime Minister Li Keqiang convened the Chinese cabinet last month, the troubled economy was the main topic on the agenda. The stock market had stumbled after a yearlong boom. Money was flooding out of the country. Most ominously, the country’s export machine had stalled, prompting a wave of labor strikes. In a little-noted advisory to government agencies, the cabinet said it was essential to fix the export problem, and the currency had to be part of the solution. With the government keeping a tight grip on the value of the renminbi, Chinese goods were more expensive than rivals’ products overseas. The currencies of other emerging markets had fallen, and China’s exporters could […]

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China stocks slump 6 percent on fears of further yuan depreciation

An investor looks at an electronic board showing stock information at a brokerage house in Hangzhou, Zhejiang province, China August 18, 2015. Chinese stocks plunged on Tuesday as the yuan weakened against the dollar, reigniting fears that Beijing may be intent on a deeper devaluation of the currency despite the central bank’s comments that it sees no reason for a further slide. Concerns that companies may pull more money out of China as the economy slows and speculation that the government may begin to scale back its massive support for the country’s stock markets also prompted investors to take profits after a run-up in prices over the last few weeks, traders said. The Shanghai Composite Index .SSEC closed down 6.1 percent at 3,749.12 points in its biggest daily decline since July 27, snapping a three-day winning streak. The CSI300 index .CSI300 of the largest listed companies in Shanghai and […]

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China Shares Tumble 6.2%

Fresh anxieties about China’s commitment to steadying the stock market sparked heavy losses in Shanghai Tuesday, despite signals of a housing recovery and the central bank’s latest steps to keep cash from fleeing. The Shanghai Composite Index tumbled 6.2% to 3748.16, just 240 points above its recent trough on July 8 and 27% off its June peak. The smaller Shenzhen Composite Index fell 6.6% to 2174.42. In Hong Kong, shares fell 1.4%, turning negative for the year, and a gauge of Chinese companies listed in the city fell 1.8%. Losses among stocks of state-owned enterprises in Shanghai started building earlier in the morning amid skepticism about Beijing’s commitment to reform . Reports of efforts to accelerate reform, long touted as a way to open up bulky conglomerates to private investment and market forces , had gained momentum in recent weeks and buoyed related stocks. “At 2 p.m. it started […]

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EPA to Propose Rules Cutting Methane Emissions From Oil and Gas Drilling

WASHINGTON—The U.S. Environmental Protection Agency on Tuesday will propose the first-ever federal regulations to cut methane emissions from the nation’s oil and natural-gas industry, according to people familiar with the move, which is part of President Barack Obama’s climate agenda. The EPA is expected to propose regulations aimed at cutting methane emissions from the oil and gas sector by 40% to 45% over the next decade from 2012…

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China Focus: Economists confident of medium-term 7-percent growth

BEIJING, Aug. 18 (Xinhua) — Economists have high hopes China can keep GDP growth above 7 percent over the next five years, as leading officials prepare to discuss 2016-2020 development at a key political meeting. Economic growth is high on the agenda of October’s plenary session of the Communist Party of China Central Committee, which will cover the 13th Five-year Plan (2016-2020). These five years are critical if Chinese leaders are to realize their goals of doubling 2010 GDP and per capita income and completing the building of a moderately prosperous society by 2020. "China’s potential growth can exceed 7 percent," said Tsinghua University economist Hu Angang, using the technical term for the maximum pace an economy can sustain over the medium to long term without stoking inflation. "China set a growth target of 7 percent for the 2011-2015 period, but the de facto annual growth was 7.8 percent […]

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Brace for More Dividend Cuts in Canada Oil Patch

Dividend cuts among Canadian energy producers are poised to accelerate as cost reductions fail to boost shrinking cash flow. Companies from Canadian Oil Sands Ltd. to Baytex Energy Corp. are in line for deeper payout decreases, according to analysts, after Crescent Point Energy Corp. slashed its dividend for the first time last week as crude sank to a six-year low. Just 38 percent of the 63 energy companies in Canada’s Standard & Poor’s/TSX Energy index had positive free cash flow, defined as operating cash flow minus capital expenditures, as of Aug. 17. That’s down from 43 percent in 2013, data compiled by Bloomberg show. The dwindling cash flow comes even after Canadian companies joined some $180 billion in global cutbacks this year, the most since the oil crash of 1986, according to Rystad Energy AS, an Oslo-based energy consultant. “There’s so much cash being spent on dividends,” said Greg […]

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BP Says Key Unit at Indiana Refinery Remains Shut

BP Plc said in a statement Monday that a key unit of its refinery in Indiana remains shut, but said it has met all of its contractual obligations since the outage hit more than a week ago. The Aug. 8 closure of the 413,000 barrel-a-day refinery’s main crude distillation unit led to a huge spike in gasoline prices in the Midwest last week, amid concerns overall supplies wouldn’t meet still-high consumer demand amid summer-driving season. In Indiana, retail gasoline prices were averaging $2.97 a gallon Monday, according to price-checking firm GasBuddy, up from $2.36 a gallon one week ago. Nationwide, gasoline prices are slightly higher from a week ago, at $2.67 a gallon. "The BP Whiting Refinery continues repair work on a crude distillation unit that was shut down due to a malfunction," the company said in an email. "The rest of the refinery continues to operate safely and […]

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Mexican oil swap sparks calls for full U.S. exports

Sen. Heidi Heitkamp, D-N.D., says crude oil is the only North Dakota commodity banned for exports. The Commerce Department last week clears oil swaps with Mexico, which supporters say is a step to easing that ban. File Photo by Kevin Dietsch/UPI | License Photo WASHINGTON, Aug. 17 (UPI) — A decision to swap crude oil with Mexico is a much needed step toward a full easing of the ban on domestic oil exports, U.S. production groups said. The U.S. Commerce Department last week granted a request from Mexican energy company Petroleos Mexicanos, known also as Pemex, to swap as much as 100,000 barrels of U.S. crude oil per day for refining into the nation. The deal requires Mexico to refine the crude oil at home and forbids re-export to other nations. Swaps are permissible under current legislation. Barrel Russell, president of the Independent Petroleum Association of America, said the […]

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Alberta producers review low-carbon agenda

Canadian oil and gas production group seeks balance in developing low-carbon economy in Alberta. Photo by akiyoko/Shutterstock CALGARY, Alberta, Aug. 17 (UPI) — Canadian oil and gas producers will work with the government in Alberta to find a balance between economic and environmental gains, a top executive said. The provincial government of Premier Rachel Notley appointed a five-member panel to develop a climate change strategy for resource-rich Alberta. Parks and Environment Minister Shannon Phillips said the panel is driving toward an organic and domestic-driven agenda . "Climate change is a threat we all face, affecting everything from our health, food production and fresh water, to biodiversity and our economy," she said in a statement. "All Albertans will have an opportunity to contribute to their province’s new plan to address this pressing global issue here at home." Most of Canadian oil sector activity is based in Alberta, a province that […]

Posted On : Published By : Tom Whipple