Markets & Industries
Investors are leaving developed markets - 02/18/2019
At the beginning of the year, international investors have significantly reduced their investments in the American and European stock markets. Apparently, they see no adequate returns amid growing expectations of a slowdown in the economies of these regions. As an alternative, investors choose companies from developing countries, which fell in price last year and now look undervalued. The Bank of...
Analysts: Chinese export grows despite restrictions - 02/15/2019
Exports from China in January in annual terms increased by 9.1% (after the December decline by 4.4%), despite the effect of US duties, according to statistics from the PRC. At the same time, imports to China also increased, but only by 1.5% (it fell by 7.6% in December). In general, China's exports grew by 9.9% in 2018, imports - by 15.8%, the trade surplus amounted to $ 351.8 billion, which is...
McKinsey notes slowdown in global trade - 02/12/2019
Growth rates of the global trade are not only decreasing, but structural changes are taking place. Increasingly fewer products are sent abroad, share of services is consistently growing and, perhaps, already exceeds the volume of goods turnover, according to the McKinsey Global Institute report. In the future, separation between goods and services will increasingly erode, and consumption will...
IIF: Capital outflows return to emerging markets - 02/05/2019
The total net outflow of investments from emerging markets in 2018 amounted to $ 23 billion, the Washington Institute of International Finance calculated. In 2017, on the contrary, there was an inflow of $ 63 billion. Only in December last year, $ 26 billion leaked from emerging markets. This outflow was mainly formed by China ($ 37 billion), while the other markets of this group, on the...
Europe closes its steel market from excess imports - 02/04/2019
The protective duties on steel and aluminum, introduced by the USA in March 2018, resulted in a significant reduction in imports into the country and redistribution of metals to other markets, in particular, to the European Union. Thus, the European Commission justified introduction of tariff quotas for main suppliers of metal. The quota allows importing goods in volumes of 2016, but if they are...
World Central Banks bought the largest amount of gold in the last 50 years - 02/01/2019
Volume of net purchases of gold from the central banks of various countries of the world, according to the World Gold Council, in 2018 amounted to 651.5 tons, which was the maximum value since 1967. This is stated in a report for the IV quarter and 2018 as a whole, published on Thursday, January 31, on the website of the World Gold Council. According to the WGC (industry organization created by...
US Fed shows patience with new rate hikes - 02/01/2019
According to results of the latest January meeting, the US Fed expectedly kept the key rate at the level of 2.25–2.5% per annum. Once again, the regulator is optimistic about state of the American economy, noting that members of the open market committee consider business expansion as the main scenario. At the same time, the Fed pointed out the need to "show patience" in further tightening...
US tax reform is losing momentum - 01/30/2019
A year after the launch of a large-scale tax reform in the United States, its impact on companies' expectations regarding the amount of capital investment has declined dramatically. According to the US National Business Association, 84% of US companies now believe that tax cuts do not lead to increased employment and investment. At the same time, most businessmen are still optimistic about...
How will Venezuela's situation affect oil prices? - 01/28/2019
The attempted coup in Venezuela could have unexpected consequences for the oil market. On the one hand, a part of the Venezuelan oil may leave the market in the event of new sanctions from the United States. On the other, in the event of a regime change, the Bolivarian Republic may significantly increase production, which will lead to an excess of supply. The political crisis in Venezuela made...
European economy is losing optimism - 01/28/2019
Estimates of the future growth of the euro area countries continue to decline. As follows from a survey of the European Central Bank (ECB), now experts on average predict EU GDP growth by 1.5% in 2019 and 2020, which is 0.3 and 0.1 percentage points (pp) lower than in the fourth quarter of last year. The first forecast for 2021 (1.4%) also implies a further decrease in the dynamics. The estimate...
