1 Japan growth runs out of steam (BBC) Japan's
economy grew at a weaker-than-expected rate in the second quarter despite an
aggressive spending policy by the government. Gross domestic product grew at an
annualised rate of 0.2% in the three months to June, below market forecasts for
0.7% and a marked slowdown from the 2% rate in the first quarter.
The figures come after the government launched a
massive new stimulus package worth 28 trillion yen ($265bn). On top of Prime
Minister Shinzo Abe's fiscal stimulus, Japan's central bank is running negative
interest rates and an unprecedented asset-purchase programme.
Mr Abe has been under pressure to end two decades of
deflation, or falling prices, but analysts say his policies are not working. Due
to the weak state of the economy, Mr Abe has delayed another increase to the
country's controversial sales tax to 2019.
Japan needs to raise more money to fund its public
debt, one of the world's largest, but when it last increased the sales tax in
2014 the economy shrunk as people cut back on spending. Private consumption
accounts for about 60% of GDP but that only rose 0.2% in the second quarter,
compared with a 0.7% increase the quarter earlier.
2 Chequered 2016 for crude oil (Dharmesh Bhatia in
Khaleej Times) There are several reasons for crude oil prices reaching a peak
of $52, after a consistent rise from the rock-bottom price of 13 years i.e.
$26.05 in the first two quarter of the current year. Steady increase in energy
demand, decrease in US production and unplanned productions cut in Nigeria and
Canada have contributed to the rise in prices.
However, doubt prevails whether this rally would
sustain or not. Normally, refineries resort to excessive production to cope
with the summer demand for petrol, gas and fire-heating oil by purchasing crude
oil and transforming it into refined energy products.
Currently, however, there is a glut of such refined
products across the world. Refineries have produced so much gasoline during the
current year that supply has exceeded demand, resulting in good news for
consumers, but not for bulls.
Crude prices are under pressure from gasoline and
the scenario is likely to continue even into the third quarter. If refineries
purchase less than expected, crude oil producers will be forced to divert
production into storage and, consequently, prices may once again face
tremendous pressure.
The US crude oil stock decreased by 14 million
barrels in May but inventories reached the peak of 522 million barrels in the
week ending July 22, which is 60 million barrels more than the average of the
last five years.
3 July 2016 was hottest month ever (Michael Slezak
in The Guardian) Last month was the hottest month in recorded history, beating
the record set just 12 months before and continuing the long string of monthly
records, according to the latest Nasa data.
The past nine months have set temperature records
for their respective months and the trend continued this month to make 10 in a
row, according to Nasa. July broke the absolute record for hottest month since
records began in 1880.
Similar data from the US National Oceanographic and
Atmospheric Administration (Noaa) said the past 14 months have broken the
temperature record for each month, but it hasn’t released its figures for July
yet.
No comments:
Post a Comment