OPEC: the global oil cartel in key dates (Agence France-Presse) - December 4, 2018 - 9:31am PARIS, France — Here are key dates in the history of the OPEC oil cartel, which Qatar has announced it plans to quit in January. The early years On September 14, 1960 the Organisation of the Petroleum Exporting Countries is set up in Baghdad by the oil-producing countries of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. It aims to respond to cuts in prices decided by the giant oil companies. In 1961 OPEC is joined by Qatar. It is followed by Indonesia and Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial Guinea (2017) and Congo (2018). Ecuador suspends its membership in 1992, but rejoins in 2007. Gabon leaves in 1995, but rejoins in 2016. Indonesia suspends its membership from 2009 to January 2016, before suspending it again … [Read more...] about OPEC: the global oil cartel in key dates
The global economic crisis
Turkish currency, Lira has nosedived over 50 per cent in last 12 months amid US sanctions and rising inflations. In fact, Lira plunged one-fifth against the dollar last week. So, is the downfall of the Turkish currency, which is sending shock waves in the global markets, sudden? Looking at the numbers, the downfall is not sudden. Lira was the worst performing currency across the world in the past 12 years. What is the reason behind this downfall of the Turkish currency and is that going to affect you?? Let's find out. Why is Lira plummeting? The Turkish economy is going through a very bad phase since a long time. The country is facing huge Current Account Deficit (CAD) in public as well as private sectors. Foreign funding has a huge role to lay in the country's financial system. High level of debt has resulted in Inflation reaching an annual rate of 15.9 per cent in July as the government has taken huge loans in the foreign currency. The default of loans in the construction sector is … [Read more...] about What is Turkish economic crisis?
The developed economies, mainly the US and in Europe, have yet to see a full recovery from the global financial crisis. US economic prospects have continued to lag behind even the most pessimistic early predictions. The average growth rate of the US economy between 2008 and 2017 was only around 2%. All the financial measures put in place by the US Federal Reserve and the European Central Bank in the form of bailouts, quantitative easing and lowering of interest rates have not been able to deliver sustainable growth in their respective economies. Unsustainable levels of growth have led to sick recoveries that feed on themselves, further impacting the rate of employment growth and creating an excellent case for secular stagnation. The dailyReport Must-reads from across Asia - directly to your inbox The case for new secular stagnation In the Great Depression era, secular stagnation was considered to be a condition where an economy endured negligible or no growth, low employment, and … [Read more...] about The three headwinds to global economic growth
source Reuters / John Gress Bank of England releases 2018 stress test scenario, designed to test British banks’ ability to withstand negative shocks. The main points of the test are a collapse in the world economy and an even bigger collapse in the UK economy. “Overall, the 2018 stress scenario is more severe than the financial crisis,” the Bank of England said. LONDON – The Bank of England on Friday released the scenario it will test Britain’s banks against this year to ensure they are resilient enough to resist a major negative shock to the global economy. The test is designed to ensure that banks are in possession of right tools – such as sufficient liquidity and relatively strong capital positions – to weather an economic storm. It is pretty apocalyptic, setting out major collapses in a whole heap of asset classes and a massive worsening of economic conditions. … [Read more...] about Millions unemployed, plunging house prices and a global economic crash: Here’s the apocalyptic scenario Britain’s banks will be stress tested against in 2018
Global stock markets are selling off amid fears about tightening monetary policy from central banks. Goldman Sachs: The data is “fundamentally good.” We’ve rounded up the analyst reaction from big banks and trading houses. LONDON – Stock markets around the world have been tanking over the last 24 hours, following the biggest single-day points drop for the Dow Jones Industrial Average in history. Traders are concerned that US inflation could rise faster than expected and force the Federal Reserve to tighten monetary policy faster than has been forecast. That could mean tougher business conditions for companies who have grown used to cheap and free-flowing money in the year’s since the 2008 financial crisis. Business Insider has rounded up what analysts from big banks and trading houses are saying about the sell-off. There doesn’t seem to be consensus around whether we’ve reached the … [Read more...] about Here’s what Goldman Sachs, UBS, Deutsche Bank and more are saying about the global stock market rout