1 China reels under debt load (Khaleej Times) Chinese
banks lent more money in January alone than the annual GDP of South Africa, as
borrowers rushed to take advantage of government policies intended to stimulate
the economy with easy credit.
But the free-for-all has had unintended
consequences, creating a tottering tower of unsustainable debt, with Beijing
now trying to tighten monetary policy and reduce access to credit without
bringing the entire edifice crashing down.
Chinese debt exceeded 270 per cent of the country's
GDP by the end of 2016, stoked by multiple interest rate cuts as well as the
growth of the unregulated "shadow finance" credit sector which
involves lending to already indebted companies. Thanks in part to the easy
credit, China's economy expanded by 6.7 per cent last year, with a construction
boom and increased public spending on infrastructure.
But the world's second largest economy is now
saddled with an unwieldy debt load, Andrew Fennell of ratings agency Fitch said
in a January 23 note, adding that "China's stable growth reflects
stimulus, not sustainability".
The abundance of cheap cash has had unexpected
consequences: the cost of garlic jumped 80 per cent last year on speculation,
investors poured money into bitcoin and real estate prices in some parts of the
country have gone through the roof. At the same time, empty apartment buildings
have mushroomed across cities where builders are struggling to find clients
willing to invest in their speculative ventures.
Authorities are also worried about the intensifying
risk of corporate defaults, particularly in the unregulated "shadow
finance" sector that covers loans to heavily indebted manufacturers and
property developers.
2 Russia overtakes Saudi as top oil producer (Gulf
News) Russia overtook Saudi Arabia as the world’s largest crude producer in
December, when both countries started restricting supplies ahead of agreed cuts
with other global producers to curb the worst glut in decades.
Russia pumped 10.49 million barrels a day in
December, down 29,000 barrels a day from November, while Saudi Arabia’s output
declined to 10.46 million barrels a day from 10.72 million barrels a day in
November. That was the first time Russia beat Saudi Arabia since March.
Saudi Arabia and fellow producers from the
Organisation of Petroleum Exporting Countries decided at the end of November to
restrict supplies by 1.2 million barrels a day for six months starting Jan. 1,
with Saudi Arabia instrumental in the plan. Non-member producers, including
Russia, pledged additional curbs. Brent crude prices have climbed about 20 per
cent since the end of November.
The US was the third-largest producer, at 8.8
million barrels a day in December compared with 8.9 million barrels a day in
November, according to JODI. Saudi Arabia’s crude exports declined to 8 million
barrels a day in December, from 8.26 million barrels a day, the biggest outflow
for any month since May 2003.
3 World’s largest yacht impounded (Rupert Neate in The
Guardian) The world’s largest sailing yacht has been impounded in Gibraltar
over claims that its billionaire Russian owner owes the shipbuilder €15.3m
(£13.3m).
The Gibraltar Port Authority impounded the €400m
“Sailing Yacht A” as it was on its way to be delivered to industrialist Andrey
Melnichenko, following a legal filing from the German shipbuilder that
constructed the futuristic-looking vessel.
The 143m-long Bermuda-registered yacht, which has
three masts taller than Big Ben’s clock tower, left the Kiel shipyard of
superyacht builder Nobiskrug two weeks ago to conduct final sea trials before
being handed over to Melnichenko.
But on Wednesday two Gibraltarian “ship keepers”
took control of the Philippe Starck designed yacht, which is longer than 13
London buses and features a helipad, onboard swimming pool, and underwater
observation pod. “In the volatile world of shipping, particularly in the recent
economic downturn, disputes and defaults are an unfortunate fact of life,” the
Gibraltar Port Authority says on its website.
Court papers show Nobiskrug is seeking an
outstanding payment of €9.8m, as well as €5.5m for subcontractors and interest
charges. The claims are made against Valla Yachts Ltd, the Bermuda company to
which the yacht is registered.
Melnichenko is said to have chosen to name his
yachts “A” so that they appear first in shipping registers. Sailing Yacht A,
which requires 54 crew to operate, has eight decks connected by several lifts,
and is capable of achieving speeds of 35 knots downwind. The unique carbon
fibre masts can withstand 90 knots of wind with full sail up, the equivalent to
a category 2 hurricane or hanging two double-decker buses from each tip.
No comments:
Post a Comment