Markets & Industries
Bank of England notes recovery in government bond market - 10/25/2022
According to Dave Ramsden, deputy governor of the Bank of England, investor confidence in British economic policy is increasing and unveiling of the tax and spending plan will be crucial to continued recovery. Ramsden said the decreased borrowing costs in the financial markets were a welcome start, albeit markets remain "quite anxious," after former finance minister Rishi Sunak was picked as the...
Australian LNG exporters may have made up to $40 billion in excess profits since February - 10/21/2022
According to a report by The Australia Institute, Australian LNG businesses might have generated between $26 billion and $40 billion in unexpected gains due to higher energy prices for the 2021–2022 fiscal year, ended on June 30. The Australian government, despite multiple requests from economists, has not yet taxed the extra earnings of businesses that sell LNG, claims study author Mark Ogge....
China stops selling LNG abroad to accumulate reserves - 10/18/2022
State-owned importers are no longer allowed to resell liquefied natural gas (LNG) to customers in Europe and Asia, according to Bloomberg. The nation wants to build up its gas reserves, before the winter season. The State Development and Reform Committee of China has reportedly requested that PetroChina Co., Sinopec, and Cnooc Ltd. store winter supplies for domestic use, according to the...
Number of bankruptcies in Japan rises for the first time in three years - 10/17/2022
According to the Kyodo news agency, the first half of fiscal 2022, which started on April 1, saw an increase in the number of Japanese companies declaring bankruptcy for the first time in three years due to rising commodity costs and a lower yen. 3,141 businesses filed for bankruptcy between April and September 2022, up 6.9 percent from the same time last year. Another underlying issue was the...
IEA: Oil production in 2023 will exceed 100M tons - 10/17/2022
The expectation for demand growth was revised as a result of OPEC+ countries' restrictions on oil production. According to the International Energy Agency's October forecast, oil consumption will rise by 1.9 million barrels per day (bpd) this year, which is 60,000 bpd less than anticipated in September. The forecast states that demand will decline by 340 thousand bpd year over year in the fourth...
Japanese central bank rules out interest rate hike - 10/14/2022
Governor Kuroda of the Bank of Japan argued that raising interest rates at this time would be unwise. Haruhiko Kuroda, governor of the Bank of Japan, stated that an increase in interest rates would be inappropriate given the dynamics of prices and the status of the Japanese economy. Following the COVID-19 epidemic, Kuroda noted at a news conference that "Japan's economy is healing its wounds,...
G7 urges oil-producing countries to increase production - 10/13/2022
The G7 urged oil-producing nations to boost their output and plans to cooperate with OPEC+ in this area. In spite of OPEC+'s "disappointing decision" to decrease output, G7 finance ministers and central bank governors urged oil-producing nations to expand production and indicated their willingness to cooperate with the cartel in the future. "We continue to encourage oil-producing nations to...
G7 plans to closely monitor volatility in currency markets - 10/13/2022
The G7 finance ministers and central bank governors reiterated that excessive currency movements are undesirable and stated they will closely monitor market volatility. The G7 financial chiefs reaffirmed their remarks from May 2017, noting that many currencies have changed with greater volatility this year. They all concurred at the time that their economies and financial stability were being...
The U.S. Federal Reserve reports its first operating loss in years - 10/12/2022
The US Federal Reserve posted its first operating deficit in years amid higher interest rates and a decline in investor demand for US assets. According to Bloomberg, the U.S. Federal Reserve (Fed) announced its first operating loss in many years. The Fed figures, as of October 5, show that the operating loss was a negative $2.9 billion. Experts caution that rising interest rates and declining...
Italian central bank forecasts growth of economy in 2023 - 10/11/2022
According to Luigi Federico Signorini, the director general of the Bank of Italy, the country's gross domestic product is only expected to expand slightly in 2019. At a public event in Rome, he stated, "According to our baseline forecast, the change in GDP is likely to remain positive on average in 2023, since the economy is expected to return to growth in the second half of the year."...
