Nearly everyone believes that oil prices will trend higher and higher, allowing increasing amounts of oil to be extracted. This belief is based on the observation that the cost of Continue Reading
LONDON (Reuters) – As food begins to flow into Bashar al-Assad’s Syria after several months of disruption, some of the president’s close allies stand to make substantial profits from the secretive trade, according to trade and opposition sources with knowledge of the situation. While civil war grinds on, Syria is facing its worst wheat harvest in three decades and Assad has been scrambling to bolster depleted food supplies. Using front companies and shipping lines, a discreet commercial and logistical network is now emerging, which aims not only to procure food commodities but to generate big returns for members of Assad’s inner circle, trade sources familiar with the matter say. The sources declined to be identified due to the sensitivity of the trade in time of war. Rami Makhlouf, Assad’s cousin and top financial ally, together with Ayman Jaber, another prominent figure subject to international sanctions, are among those involved […]
LONDON (Reuters) – As food begins to flow into Bashar al-Assad’s Syria after several months of disruption, some of the president’s close allies stand to make substantial profits from the secretive trade, according to trade and opposition sources with knowledge of the situation. While civil war grinds on, Syria is facing its worst wheat harvest in three decades and Assad has been scrambling to bolster depleted food supplies. Using front companies and shipping lines, a discreet commercial and logistical network is now emerging, which aims not only to procure food commodities but to generate big returns for members of Assad’s inner circle, trade sources familiar with the matter say. The sources declined to be identified due to the sensitivity of the trade in time of war. Rami Makhlouf, Assad’s cousin and top financial ally, together with Ayman Jaber, another prominent figure subject to international sanctions, are among those involved […]
CARACAS, Venezuela — The transportation minister appeared on live television from an auto-parts store, trumpeting prices that had been slashed in half, at least. A top regional official, broadcasting from another shop, boasted that prices of toys and other goods had been cut to the bone. From an appliance store, the commerce minister called on shoppers to buy washers and dryers at new, low-low prices. This week, the entire cabinet of President Nicolás Maduro of Venezuela has been waging a battle against soaring inflation like a socialist version of Crazy Eddie, the onetime electronics chain store famous in New York for its goofy 1980s ads that trumpeted its “insane” prices. It is all part of a fever-pitch campaign to quell frustration with the economy by forcing retailers to slash prices, giving a much-needed shot of adrenaline to Mr. Maduro’s government just weeks before municipal elections that opponents want to […]
Berkshire Hathaway Inc. (BRK/A) reported a stake in Exxon Mobil Corp. (XOM) valued at about $3.7 billion as Warren Buffett ’s company disclosed its largest new holding since adding International Business Machines Corp. in 2011. Buffett’s company owned 40.1 million shares of Exxon on Sept. 30, Omaha, Nebraska-based Berkshire said today in a regulatory filing. The world’s biggest oil company by market value closed at $93.22 today in New York . It rose to $93.90 in extended trading at 5:14 p.m., after the filing. Berkshire has benefited this year as its stock picks rallied along with the broader market, affirming a strategy of favoring equities instead of bonds amid near record-low interest rates. Buffett has tracked Exxon and bought its stock in the past, holding a stake in the Irving, Texas-based energy producer as recently as 2011. Exxon Mobil “is undervalued, in his opinion, and pretty much being ignored […]
A Brazilian conglomerate unveiled a proposal Thursday to build a multibillion-dollar natural-gas refining complex in West Virginia—the biggest such development in the state as it tries to profit from the region’s drilling boom. The proposed project by Odebrecht Group, a privately held São Paolo-based engineering, construction and petrochemical company, would include a plant known as an ethane cracker, where natural gas is turned into ethylene, a chemical-industry feedstock. The complex would also include three plants to produce polyethylene, which is used to make numerous products, from plastic bags to pipes. Odebrecht said the project is subject to securing both financing and long-term contracts to obtain ethane through pipelines, as well as regulatory approvals. A company spokeswoman declined to provide further details on the project’s cost or timing. Drilling in the Marcellus Shale and Utica Shale—massive natural-gas deposits beneath parts of West Virginia, Pennsylvania and Ohio—have made Appalachia one of […]
FRANKFURT—The euro-zone economy barely expanded in the third quarter, raising fresh concerns that the region faces a mix of stagnation, weak prices and high unemployment that threatens to hold back activity for the foreseeable future. Gross domestic product in two of the bloc’s three biggest economies—France and Italy—contracted. Growth in Europe’s largest economy, Germany, slowed sharply. Euro-zone GDP expanded 0.1% from the previous quarter, or 0.4% at an annualized rate, the European Union’s statistics agency Eurostat said Thursday. That is down sharply from roughly 1.2% annualized growth in the second quarter. The euro-zone economy contracted for six-straight quarters from late 2011 through the first three months of this year. Germany’s GDP increased 1.3% in the third quarter from the preceding period on an annualized basis, according to calculations by J.P. Morgan matching economists’ forecasts. That marked a significant slowdown from the second quarter, when German GDP swelled 2.9% annualized, […]
FRANKFURT — The euro zone economy marked time in the third quarter of the year, growing just 0.1 percent from the second quarter, disappointing hopes that the region was finally recovering after five years of recession or very slow growth. The economy of the 17-country currency bloc stagnated as output slowed in Germany, Europe’s largest economy, and declined in France, the second largest, Eurostat, the statistical agency of the European Union, reported from Luxembourg. On an annualized basis, Europe’s 0.4 percent growth compares poorly with the United States’ annualized 2.8 percent third-quarter growth and the 1.9 percent Japan reported Thursday. China, the world’s fastest growing major economy, expanded at a robust 7.8 percent rate in the third quarter. The overall European Union, made up of 28 countries, grew 0.2 percent from the second quarter, and 1 percent on an annualized basis, Eurostat said. There was some positive news, as […]
BRUSSELS (AP) — Official figures show industrial output across the 17-country eurozone fell a monthly rate of 0.5 percent in September, a decline that may mean economic growth across the region came to a standstill in the third quarter of the year. The fall reported Wednesday by Eurostat, the EU’s statistics office, was larger than expected and means the sector weighed on third quarter growth. September’s fall follows a 1 percent rise in August that only compensated for an equivalent decline in July. The industrial figures come a day ahead of the first estimate for third quarter growth. A run of disappointing figures have reined in expectations – before Wednesday’s data, the consensus in the markets was that the eurozone eked out growth for the second straight quarter, albeit a paltry 0.2 percent. © 2013 The Associated Press . All rights reserved. This material may not be published, broadcast, […]
LONDON (Reuters) – The threat of deflation in the euro zone could reverse a major investment trend of 2013, drawing funds out of stocks and into government bonds and cash. Europe is still some way from a negative inflation rate, let alone a Japanese-style deflationary spiral – the policymakers’ nightmare in which falling prices weaken demand, leading to wage cuts and even lower prices. But a warning light is already flashing, with euro zone inflation registering a shock drop last month that prompted an interest rate cut. This year’s "Great Rotation" flows away from bonds have propelled many stock markets to multi-year or record highs and fuelled a rally in property and other relatively high-yielding assets. But it’s a potential money loser in an environment of weak inflation or even outright price declines. With chronic price falls, investors become ultra-risk averse. "Deflation would follow from lower growth than we […]
DUBAI (Zawya Dow Jones)–The economic outlook for the Middle East has weakened this year amid expectations of lower oil production in crude-exporting countries and continuing political upheaval in Syria and Egypt, the International Monetary Fund said Tuesday. Oil exporters are dealing with domestic supply disruptions and lower global demand, which has led to reduced output even as political instability puts upward pressure on prices, the IMF said in a regional economic outlook. The IMF slashed its 2013 economic growth forecast for the region, which includes the Middle East, North Africa, Afghanistan and Pakistan, to 2.3% from a May prediction of 3%. The IMF now expects the region’s oil production to fall this year for the first time since the global financial crisis because of disruptions to output in Iraq and Libya and a “modest fall” in production in Saudi Arabia, one of the world’s biggest exporters. While growth is […]
China may announce looser energy price controls and the break up of the domestic duopoly of PetroChina Co. and China Petroleum & Chemical Corp. (386) after a four-day Communist Party meeting ends today. “We expect an announcement on liberalizing of resource price and an opening up of the energy industry to more private investment,” Simon Powell, head of oil and gas research at CLSA Ltd., said in a telephone interview yesterday. “Any fuel price reforms would be mildly positive for Sinopec and natural gas price liberalization would help PetroChina.” China Petroleum is known as Sinopec. Chinese Politburo member Yu Zhengsheng said last month reforms to be discussed at the meeting of the party’s Central Committee meeting will be unprecedented “and will promote profound changes in every area of the economy and society.” Yu is ranked fourth in the seven-strong Politburo Standing Committee headed by party chief and President Xi […]
CAIRO (Reuters) – Egypt is engaged in a high stakes gamble, using billions of dollars from Gulf Arab allies to stimulate the economy and keep its politically charged streets calm in the hope that investors and tourists will return. The biggest Arab country’s finances are in a precarious state with a massive deficit but the government, armed with billions of Gulf petrodollars, has rejected the conventional wisdom of IMF-prescribed austerity measures. If the plan fails, a new government expected to be elected early next year could find itself deep in debt, its currency overvalued and an economy in crisis. "Now we are living on a ventilator, (with) aid from neighboring countries and that is understandable in the midst of a meager tourism industry and reluctance of direct foreign investment," Sherif Samy, Egypt’s Financial Supervisory Authority head, said. Saudi Arabia, Kuwait and the United Arab Emirates pledged more than $12 […]
Reuters TRIPOLI (Reuters) – Libya may find it difficult to cover its budget expenditure next month or the one after unless strikes blocking oil ports and fields end, Prime Minister Ali Zeidan said on Sunday. A mix of militias, tribes and civil servants seeking political rights or higher pay have seized oil ports and fields across the OPEC producer, knocking down output to a fraction of its capacity of 1.25 million barrels a day. “The budget is based on the assumption that oil revenues flow for the (full) year,” Zeidan told reporters. “From next or the following month, there could be a problem covering expenditures.” Zeidan said the government had given the protesters a week to 10 days to clear the blocked oil fields and ports. “Otherwise, we will take measures,” he said, declining to be more specific. He said the blockage of the Mellitah terminal in Western Libya […]
CARACAS (Reuters) – President Nicolas Maduro’s government announced arrests of both store managers and looters on Sunday as part of what it calls an "economic war" in Venezuela between the socialist state and unscrupulous businessmen. In a major pre-Christmas campaign reminiscent of the late President Hugo Chavez’s dramatic style, Maduro has sent soldiers to "occupy" one chain of electronics stores and inspectors into scores of others to check for price-gouging. Thousands of Venezuelans have been flocking to electronics stores, hoping to take advantage of new "fair prices" the government is imposing, sometimes half the previous cost. However, scenes of looting on Saturday at a store belonging to the occupied electronics chain, Daka, have left many Venezuelans ashamed and fueled opposition claims that Maduro is stirring chaos rather than defending the poor. Authorities announced that five managers, from the local Daka, JVG and Krash companies, would be prosecuted on charges […]
CARACAS (Reuters) – President Nicolas Maduro’s government announced arrests of both store managers and looters on Sunday as part of what it calls an "economic war" in Venezuela between the socialist state and unscrupulous businessmen. In a major pre-Christmas campaign reminiscent of the late President Hugo Chavez’s dramatic style, Maduro has sent soldiers to "occupy" one chain of electronics stores and inspectors into scores of others to check for price-gouging. Thousands of Venezuelans have been flocking to electronics stores, hoping to take advantage of new "fair prices" the government is imposing, sometimes half the previous cost. However, scenes of looting on Saturday at a store belonging to the occupied electronics chain, Daka, have left many Venezuelans ashamed and fueled opposition claims that Maduro is stirring chaos rather than defending the poor. Authorities announced that five managers, from the local Daka, JVG and Krash companies, would be prosecuted on charges […]
CARACAS, Venezuela — The Christmas shopping season has started with a jolt here, with the socialist Venezuelan government dispatching soldiers to “occupy” a major chain of electronic goods stores, ordering prices slashed there and in other shops that it has accused of price gouging. Huge crowds formed outside stores in several cities over the weekend as inflation-weary Venezuelans showed up hoping for bargains. Others took the government’s order as a license to loot: Some posted cellphone videos online showing large-screen televisions and other items being carted off in Valencia, the country’s third-largest city. The dramatic measures, ordered on Friday by President Nicolás Maduro, were reminiscent of the populist gestures of his immediate predecessor, Hugo Chávez, the country’s longtime leader who died in March . They come as the government grapples with serious economic problems, including inflation of 54 percent a year and shortages of many basic goods, including toilet […]
A clinic where the main doctor had his licence revoked, a mobile phone shop closed by a fire, and a car dealership that sold a discontinued marque are among businesses that successfully claimed compensation from BP for its 2010 oil spill in the Gulf of Mexico, according to court documents filed by the company late last week. BP cited the cases as it made a fresh attempt to limit the cost of its compensation settlement for the Deepwater Horizon disaster, trying for the first time to challenge directly payments for losses not caused by the spill. Until now, its arguments in court have centred on the method used to calculate the size of loss, rather than the issue of causation. In its filing at the US District Court in New Orleans, BP said its lawyers had found compensation payments of $76m had been paid for claims where it was […]
BEIJING (Reuters) – Chinese leaders began a four-day secret meeting on Saturday to set a reform agenda for the next decade as they try to push more sustainable growth after three decades of breakneck expansion, amid signs of continuing debate on how to implement the reforms. President Xi Jinping and Premier Li Keqiang must unleash new growth drivers as the world’s second-largest economy loses steam, burdened by industrial overcapacity, piles of debt and soaring house prices. The meeting – held under tight security at a Soviet-era hotel in western Beijing – will show just how committed the new leadership is to reform after formally taking power in March. Economic reforms will dominate the meeting of the 205-member Central Committee of China’s ruling Communist Party. Little if any news will be released during the event, but official news agency Xinhua traditionally issues a dispatch on the last day. Xinhua confirmed […]
« DOE Inspector General criticizes agency’s handling of disclosures over Ecotality awards | Main | U-Mich Mobility Transformation Center targeting full autonomous vehicle deployment in Ann Arbor by 2021 » Print this post GFEI report suggests $2T savings from fuel economy improvements in ICE vehicles through 2025 can help fund long-term transition to plug-ins Fuel economy improvements from conventional internal combustion engine cars can save an estimated $2 trillion in fuel costs through 2025—and more in years after— according to a new working paper published by the Global Fuel Economy Initiative (GFEI) prepared by Dr. Lew Fulton, Co-Director, NextSTEPS Program at the Institute of Transportation Studies, University of California at Davis. The GFEI, a partnership of international agencies and top energy policy experts, suggests that these cost savings could in part be used to help offset the costs of developing a global market for electric vehicles over this time […]
Benefit From the Latest Energy Trends and Investment Opportunities before the mainstream media and investing public are aware they even exist. The Free Oilprice.com Energy Intelligence Report gives you this and much more. Click here to find out more. Some fascinating data points on the global oil and gas business from Ernst & Young last week. The group released its annual Global oil and gas reserves study. And the findings suggest some worrisome trends afoot in the petroleum business. The report confirmed that high costs are plaguing the business. Exploration and development spending by E&Ps globally jumped 20% in 2012 alone. And rose a towering 48% between 2008 and 2012. On its own, the rise in spending might simply indicate good times at hand for the industry. But a few other numbers from the report sound a warning on this front. Namely, profits. Despite the big increase in spending, […]
Benefit From the Latest Energy Trends and Investment Opportunities before the mainstream media and investing public are aware they even exist. The Free Oilprice.com Energy Intelligence Report gives you this and much more. Click here to find out more. Some fascinating data points on the global oil and gas business from Ernst & Young last week. The group released its annual Global oil and gas reserves study. And the findings suggest some worrisome trends afoot in the petroleum business. The report confirmed that high costs are plaguing the business. Exploration and development spending by E&Ps globally jumped 20% in 2012 alone. And rose a towering 48% between 2008 and 2012. On its own, the rise in spending might simply indicate good times at hand for the industry. But a few other numbers from the report sound a warning on this front. Namely, profits. Despite the big increase in spending, […]
Worker in a Chinese factory 8 November 2013 Last updated at 05:23 China’s manufacturing and export sectors have been key drivers of its economy China’s exports and imports rose in October, the latest in a series of figures indicating a recovery. Exports, a key driver of its growth, rose 5.6% from a year earlier, while imports jumped 7.6%. This follows data released earlier this month which showed that manufacturing activity in China grew at its fastest pace in 18 months in October. The numbers come ahead of key meetings of China’s Communist Party, with economic reforms set to be discussed. Known as the Third Plenary Session of the Central Committee, the meeting will run from 9 to 12 November, and top leaders are expected to discuses reforming key areas such as the financial sector and state-owned enterprises. ‘Holding up’ China’s economy, the world’s second-biggest, has shown signs of a […]
HONG KONG — Surprisingly strong exports reported by China on Friday bolstered the view that the global economy is improving, just as Chinese leaders were set to hold an important policy meeting to flesh out their economic agenda for the coming years. Exports rose 5.6 percent in October from a year earlier, reversing a 0.3 percent slide in September and beating expectations for a much more modest rise, according to data from the Chinese customs administration. Imports confirmed that domestic demand was solid, rising 7.6 percent from a year earlier, a little more rapidly than the 7.4 percent recorded in September. After a rocky patch earlier this year, China’s economy has stabilized in recent months, echoing improvements in the United States, Japan and the long-beleaguered euro zone. Friday’s data confirmed that the steady — though not stellar — expansion in the Chinese economy in recent months has continued into […]
The sun sets behind cranes at the Yangshan Deep Water Port, part of China (Shanghai) Pilot Free Trade Zone’s Yangshan free trade port area, in Shanghai, China ’s exports bounced back in October from the surprise drop recorded in September offering some improved economic news as the country’s leaders prepare to set its fiscal and political direction for the next decade. The 5.6 per cent year-on-year increase in exports in October was higher than market expectations for a 3.2 per cent rise, and an improvement on the 0.3 per cent contraction recorded in September. China’s trade surplus rose to $31.6bn in October, double that of the previous month. The numbers will be a reminder, however, that China cannot simply rely on exports to power the economy and provide jobs – which had been the model during the first three decades since China adopted a market-based economy. The export sector […]
MOSCOW—The Russian government slashed its economic forecasts for the next two decades, issuing a dire warning that the oil-fueled growth that has been a foundation of Vladimir Putin ‘s rule is over and there’s nothing likely to take its place, given the country’s poor investment climate and aging infrastructure. The Economy Ministry said it expects growth at an annual rate of 2.5% to 2030, below the global average, meaning Russia’s steady climb up the ranks of global economies in Putin’s early years is likely to reverse. Boosted by high oil prices and reforms following the Soviet collapse, the economy grew at an average rate of 7% in the years before the 2008 global financial crisis. Since he returned to the presidency in 2012, Mr. Putin has called for 5% growth for Russia to catch up with leading global economies, but the latest forecasts say that goal is far out […]
MOSCOW—The Russian government slashed its economic forecasts for the next two decades, issuing a dire warning that the oil-fueled growth that has been a foundation of Vladimir Putin ‘s rule is over and there’s nothing likely to take its place, given the country’s poor investment climate and aging infrastructure. The Economy Ministry said it expects growth at an annual rate of 2.5% to 2030, below the global average, meaning Russia’s steady climb up the ranks of global economies in Putin’s early years is likely to reverse. Boosted by high oil prices and reforms following the Soviet collapse, the economy grew at an average rate of 7% in the years before the 2008 global financial crisis. Since he returned to the presidency in 2012, Mr. Putin has called for 5% growth for Russia to catch up with leading global economies, but the latest forecasts say that goal is far out […]
HONG KONG (AP) — China’s exports rebounded to relatively strong growth in October while imports accelerated, adding to signs of a recovery in the world’s second-largest economy. Exports rose 5.6 percent over a year earlier to $185.4 billion, government figures showed Friday. That was a marked improvement over September’s unexpected and rare decline of 0.3 percent, blamed on weak global demand. The improvement in trade eases pressure on Beijing for additional economic stimulus, allowing communist leaders to focus on longer-term reforms meant to steer the economy to more sustainable growth based on domestic consumption instead of trade and investment. Communist Party leaders are due to meet Saturday for an annual congress that reform advocates hope produces commitments to more market-style changes. Economic growth rebounded to 7.8 percent in the three months ended in September after hitting a two-decade low of 7.5 percent the previous quarter. Surveys of manufacturers by […]
HONG KONG (AP) — China’s exports rebounded to relatively strong growth in October while imports accelerated, adding to signs of a recovery in the world’s second-largest economy. Exports rose 5.6 percent over a year earlier to $185.4 billion, government figures showed Friday. That was a marked improvement over September’s unexpected and rare decline of 0.3 percent, blamed on weak global demand. The improvement in trade eases pressure on Beijing for additional economic stimulus, allowing communist leaders to focus on longer-term reforms meant to steer the economy to more sustainable growth based on domestic consumption instead of trade and investment. Communist Party leaders are due to meet Saturday for an annual congress that reform advocates hope produces commitments to more market-style changes. Economic growth rebounded to 7.8 percent in the three months ended in September after hitting a two-decade low of 7.5 percent the previous quarter. Surveys of manufacturers by […]
On paper, it’s a perfect match: The U.S. is awash in new supplies of natural gas, while China is trying to get off coal and use cleaner-burning fuels. Plus, the U.S. Department of Energy this year has begun approving new terminals to export liquefied natural gas around the world. But a Washington trade-policy expert says the political case for U.S. exports of natural gas to China isn’t as strong as the business case. Damian Ma of the Paulson Institute says China’s fear of increasing reliance on the U.S. could trump its need for natural gas. In a paper just released by the National Bureau of Asian Research, Mr. Ma says China “has traditionally been wary of becoming overreliant on any particular country for its energy needs, believing that such dependence would allow other powers to exert leverage. Such wariness may also figure strongly in Beijing’s attitude toward receiving gas […]
HONG KONG — China’s president, Xi Jinping, is about to plunge the country and himself into a risky experiment: an attempt to carry out market-driven economic overhauls while reinforcing the Communist Party’s pillars of political and ideological control. This mixed agenda has magnified doubts about whether he can deliver on his promises of transformation. At a meeting, or plenum, of the party’s Central Committee that starts Saturday, Mr. Xi will enumerate his plans for an economic overhaul, and state-run news media has promoted the event as a turning point. Mr. Xi and Prime Minister Li Keqiang have indicated that they want to nurture healthy, sustained growth by encouraging more market competition, private business, financial liberalization and individual consumption, leaning away from the state-focused policies of the past decade. Yet, Mr. Xi wants to achieve this economic shift away from the state while strengthening the ruling party , which derives […]
Congress probably will consider loosening restrictions on U.S. oil exports, though a push by industry to sell more crude overseas will be resisted by members concerned about the impact on gasoline prices, lawmakers said. Senator Lisa Murkowski , the top Republican on the Senate Energy and Natural Resources Committee, believes the debate on oil exports will happen “sooner rather than later,” according to Robert Dillon, a spokesman for the Alaska lawmaker. “It’s something we are looking at,” Dillon said. The chairman of the committee, Senator Ron Wyden , an Oregon Democrat, agrees the debate is coming though he would need to see benefits to consumers before supporting such a move, said spokesman Keith Chu in an e-mail. The American Petroleum Institute is developing the “necessary legal analysis” and may “highlight potential violations” of global trade rules in support of natural gas and oil exports, according to an internal planning […]
oil tanker Photo: MrHicks46/Flickr. Critics of TransCanada’s Keystone XL project often argue that Canada should reap the full benefits of its natural resources, rather than exporting its petroleum riches south of the border. Head to the U.S. and, ironically, you can hear the same discussion. Much of America’s new found oil wealth is being shipped abroad, which is worrying Americans who figured they had a Made-in-the-USA solution to the country’s energy needs. Since 1975, U.S. federal law has banned raw crude from being exported in the interests of national energy security. The legislation, however, doesn’t cover refined products, such as gasoline or diesel. American refineries are free to export as much refined product as they can sell. And these days that’s a lot. Refineries in the U.S. are shipping record amounts of gasoline around the world, exporting the fruits of the country’s shale revolution to some of the same […]
Page added on November 6, 2013 As in the second quarter of the year, third quarter results for the oil majors, the international oil companies and other major listed operators, were disappointing. Some were downright awful. Why have results for the oil companies deteriorated so markedly, and what should we expect in the future? In this article, we’ll look primarily at upstream liquids — primarily crude oil production. Historically, when crude oil consumption has reached 4.25% of GDP in the US, the consumer has chosen to reduce consumption rather than accept further price increases. This number represents a Brent oil price of $103 / barrel today. The equivalent numbers for China are about 6.25% of GDP and $120 / barrel, Brent basis. Take the combined average, and the global “carrying capacity”, the price the global economy as a whole can manage, is about $112 / barrel Brent, just a […]
Wind farms and solar parks are changing hands at record rates, signaling both an increased taste for the assets among pension funds and hard times for utilities that are the biggest sellers. About 43 percent of the 275 deals completed in the power industry in the first nine months were for renewable generators, up from 37 percent in the year-earlier period, according to data compiled by Ernst & Young LLP. The value of all the deals increased to $104 billion from $93 billion. Buyers from insurer Aviva Plc (AV/) to Danish fund PFA Pension A/S are seeking yields averaging about 6 percent on wind and solar, according to data compiled by Bloomberg. Utilities such as France ’s GDF Suez (GSZ) SA, Iberdrola SA (IBE) of Spain and Dong Energy AS have unloaded plants to build cash cushions as power prices slumped and competition increased from independent generators. Utilities “simply […]
SYDNEY, Nov. 5 (UPI) — Australia’s mining sector is expected to suffer from China’s economic downturn, says a new report. “With China’s economy on course for a rude slowdown over the coming years,” says the report, released Monday by London-based research consultants Business Monitor, “Australia’s mining sector is set to suffer the painful spillover effects of a sharp investment slowdown.” The report notes that Australia has been among the biggest beneficiaries from the China-led commodities boom over the past decade. The value of the Australia’s mining industry had increased more than six-fold from $24 billion in 2003 to $147 billion in 2012, boosted by a sharp rise in the value of Australia’s mineral exports, particularly iron ore and coal. While Business Monitor predicts the value of Australia’s mining sector to reach $181 billion by 2017, the average annual growth rate is expected to be 4.3 percent through 2017, compared […]
SYDNEY, Nov. 5 (UPI) — Australia’s mining sector is expected to suffer from China’s economic downturn, says a new report. “With China’s economy on course for a rude slowdown over the coming years,” says the report, released Monday by London-based research consultants Business Monitor, “Australia’s mining sector is set to suffer the painful spillover effects of a sharp investment slowdown.” The report notes that Australia has been among the biggest beneficiaries from the China-led commodities boom over the past decade. The value of the Australia’s mining industry had increased more than six-fold from $24 billion in 2003 to $147 billion in 2012, boosted by a sharp rise in the value of Australia’s mineral exports, particularly iron ore and coal. While Business Monitor predicts the value of Australia’s mining sector to reach $181 billion by 2017, the average annual growth rate is expected to be 4.3 percent through 2017, compared […]
Just as European economies are showing signs of stabilizing and the U.S. economy is waking up, some companies are running into obstacles in a market long considered their brightest hope: China. U.S. and European companies invested heavily in recent years to expand in China, seeking to tap into its flourishing middle class and fast economic growth. Since the global recession, China has helped offset the free fall in sales and profits in the euro zone and stagnant revenue in the U.S. But the latest set of quarterly earnings results reveal that for many companies, China has been a drag. While some industries did well, the combination of slower economic growth, plus government crackdowns that have put fresh scrutiny on the way companies win new business, hurt sectors from technology to luxury goods to pharmaceuticals. As a result, the sluggish global sales that persisted through much of the recovery aren’t […]
Just as European economies are showing signs of stabilizing and the U.S. economy is waking up, some companies are running into obstacles in a market long considered their brightest hope: China. U.S. and European companies invested heavily in recent years to expand in China, seeking to tap into its flourishing middle class and fast economic growth. Since the global recession, China has helped offset the free fall in sales and profits in the euro zone and stagnant revenue in the U.S. But the latest set of quarterly earnings results reveal that for many companies, China has been a drag. While some industries did well, the combination of slower economic growth, plus government crackdowns that have put fresh scrutiny on the way companies win new business, hurt sectors from technology to luxury goods to pharmaceuticals. As a result, the sluggish global sales that persisted through much of the recovery aren’t […]
WUHAN, China — The two-story employment complex here, like job centers across China, is crowded with educated young people who are trying to figure out their futures in a country where the job market still prizes assembly-line workers willing to labor monotonous hours on backless stools. Among them is Zheng Yilong, who graduated from a university three months ago and refuses to consider a factory job even though his degree is in machinery design. He seeks a desk job instead. Sitting at the employers’ booths are much older factory managers like Jin Tao who despair of finding the workers they need. “I see the problem mostly as an education mismatch problem,” Mr. Jin said. “I’m willing to pay more than 3,000 renminbi a month, which is more than what fresh college graduates are getting.” (That’s about $500.) “I’m also willing to give training, but the young people now with […]
The U.S. oil industry, riding a domestic energy boom, is preparing to challenge restrictions on crude exports, possibly by arguing that limits designed to keep petroleum in America may violate international trade rules. “Export issues are something we’re going to have to address,” John Felmy, the chief economist for the American Petroleum Institute trade group said in an interview. “It’s a debate we have to have.” He declined to discuss lobbying strategy or trade rules, though a June planning document on API letterhead obtained by Bloomberg News says the group has begun to develop “the necessary legal analysis” to support export approvals. API is planning to “highlight potential violations of the World Trade Organization rules against export restrictions,” according to the draft document, prepared for the group’s executive committee meeting. Industry officials say the push is just starting to lift the 1970s-era restrictions, and they acknowledge it will be […]
Great1.png Page added on November 5, 2013 Still waiting for large, economy-wide job increases from the “shale revolution” From Goldman Sachs, “Is the Economy Gaining “Fracktion?”” (not online): There is little evidence of significant “induced” employment growth in downstream manufacturing industries. Similarly, cap-ex in energy intensive sectors that might be expected to benefit most from the shale boom has not outperformed cap-ex in other sectors during the recovery, although it did decline by less during the recession. On top of fears that the surge in unconventional oil and natural gas will not be enduring [1] [2] [3] , there remains some doubt that the development of fracking will be the game-changer that many have claimed – at least with respect to macroeconomics. (Prominent studies include IHS (2012) , McKinsey (2013) .) Below I turn first to a discussion of employment growth in core oil and gas extraction. Then I […]
U.S. officials head to Geneva this week for a pivotal new round of discussions with Iran over its nuclear program. So you can be sure some tricky talks lie just ahead for the Obama administration. Tricky negotiations with the Iranians, of course. But also tricky negotiations with Congress and with Israel over the future of economic sanctions against the Iranian regime. The administration and its partners among big world powers—Britain, France, Russia, China and Germany—believe they are moving toward a two-phase agreement with Iran designed to rein in its nuclear program before it becomes capable of producing nuclear weapons. Under the first phase of that deal, Iran would freeze elements of its nuclear program immediately in return for what officials say would be “modest” relief from some of the broad and crippling sanctions the West put in place. And that’s where the rub comes in. That first phase, the […]
Ingram Pinn illustration Foreign commentators and local bloggers regularly predict that China is heading for an economic and political crisis. But the country’s leaders are in strikingly confident mood. They believe that China can keep growing at more than 7 per cent a year for at least another decade. That would mean the country’s economy – already the second-largest in the world – would double in size. And, depending on the assumptions you make about US growth and exchange rates, it would probably mean that China becomes the world’s largest economy by 2020. Nobody embodies the leadership’s confidence better than the burly, imposing figure of Xi Jinping, China’s president. Last week, I was part of a group of foreign visitors – brought together by the 21st century Council, a think-tank – who met the Chinese leader in Beijing. Mr Xi’s manner is warmer and less formal than that of […]
AP Photo BEIJING (AP) — Chinese leaders have ordered local officials to stop expanding industries such as steel and cement in which supply outstrips demand, a Cabinet statement said Tuesday, in a sign previous orders to cut overcapacity were ignored. Beijing has been trying since 2009 to cut excess production capacity, which has triggered price-cutting wars that threaten the financial health of some industries. But lower-level leaders whose promotions depend on economic development have continued to support local industries. In a video conference on Monday, planning officials warned local leaders to stop ignoring orders to reduce overcapacity in industries including steel, cement, aluminum and glass. “Those who still violate discipline will be heavily punished,” said the deputy director of the Cabinet planning agency, the National Development and Reform Commission, Hu Zucai, according to the government newspaper China Daily. Economists and business groups warn industrial overcapacity could hurt Chinese banks […]
BEIJING (Reuters) – China needs to sustain economic growth of 7.2 percent to ensure a stable job market, Premier Li Keqiang said as he warned the government against further expanding already loose money policies. In one of the few occasions when a top official has enunciated the minimum level of growth needed for employment, Li said calculations show China’s economy must grow 7.2 percent annually to create 10 million jobs a year. That would cap the urban unemployment rate at around 4 percent, he said. "We want to stabilize economic growth because we need to guarantee employment essentially," Li was quoted by the Workers’ Daily as saying on Monday. His remarks were made at a union meeting two weeks ago but were only published in full this week. Yet even as authorities keep an eye on growth, Li sounded a warning on easy credit supply, which he said had […]
The European Union is poised to call on governments to improve their state-aid mechanisms in energy markets, including support programs for renewable energy. The European Commission, the 28-nation bloc’s regulatory arm, aims to start a public debate on government intervention in the electricity market as end-user prices rise, according to a draft of an EU communication to be published in Brussels today. The increased costs are caused by high and rising taxes and levies on final power charges, as well as the costs of networks and fuels, according to the draft, which was obtained by Bloomberg News . “Public intervention can be useful and effective to attain policy objectives set at Union, regional, national or local level, but it must be well-designed and should be adapted to changes in market functioning, technology and society that occur over time,” the commission said in the document. The call for a public […]
A soldier outside parliament in Beijing ©Reuters A soldier in Beijing. The party will discuss ‘unprecedented’ reforms at their meeting, according to one leader In the coming days, the Communist Party of China will hold the country’s most anticipated political event of the year. The show trial of disgraced politician Bo Xilai may have given the masses a dose of high political theatre but the forthcoming closed-door meeting of party grandees could prove to be far more significant and far-reaching. The third plenary session of the 18th Congress of the CPC Central Committee will take place between November 9 and November 12. The party leadership has strongly hinted that Mr Xi will use this occasion to send a powerful message to the world about his plans for the rest of his decade in power. Last week, Yu Zhengsheng, the fourth-ranked leader in the party hierarchy, described the reforms to […]
TEHRAN, Nov. 2 (Xinhua) — Iran’s inflation for 12 months ending on Oct. 22 hit 36.2 percent, 11.4 percentage points up from its corresponding figure last year, Tehran Times daily reported Saturday, quoting the Statistics Center of Iran. On Oct. 27, Iran’s Finance and Economic Affairs Minister Ali Tayebnia said the government planned to reduce the nation’s inflation rate by 6-7 percent by the end of the current Iranian year (March 20, 2014). Through curbing the runaway liquidity growth, the inflation rate is expected to be brought down, Tayebnia was quoted as saying. Adopting proper and efficient monetary and fiscal policies will help curb the inflation rate as well, he added. Also, Valiollah Seif, Governor of the Central Bank of Iran has pledged to control liquidity and bring down inflation, as President Hassan Rouhani has agreed to separate monetary and fiscal policies, giving the bank more independence, according to […]
