Central Bank Rate Cuts Mean ‘World Has Gone Zimbabwe’ By Cointelegraph



Bitcoin Analyst: Central Bank Rate Cuts Mean ‘World Has Gone Zimbabwe’

(BTC) supporters are watching as almost every central bank in the world lowers interest rates and the global fiat money supply skyrockets.

Statistics compiled by Charlie Bilello, CEO of wealth manager Compound Capital Advisors, show that in 2020, 84 of the world’s 118 central banks have cut interest rates.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. employers announced more job cuts in June: report By Reuters



© Reuters. FILE PHOTO: People line up outside a Kentucky Career Center hoping to find assistance with their unemployment claim in Frankfort

WASHINGTON (Reuters) – U.S. employers announced an additional 170,219 job cuts in June as the recession caused by the COVID-19 depresses demand and pushes companies into bankruptcy, a report showed on Wednesday.

Though the layoffs reported by global outplacement firm Challenger, Gray & Christmas were down 57% from May, they jumped 306% compared to June last year. The job cuts explain why new filings for unemployment benefits have remained extraordinary high even as businesses have reopened after closing in mid-March to slow the spread of the coronavirus.

“We are beginning to see the impact of the recession spreading to companies that were not directly impacted by the virus,” said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. “At the same time, companies that attempted to reopen but were only able to attract a fraction of their pre-COVID customers are closing down again. Meanwhile, a number of high-profile companies are filing for bankruptcy.”

Initial weekly claims for unemployment benefits have been stuck around 1.5 million, though applications have dropped from a historic 6.867 million scaled at the end of March.

About 30.6 million people were collecting unemployment checks in the first week of June.

According to Challenger, Gray & Christmas, layoffs totaled an all-time high of 1.238 million in the second quarter, up 257% from the January-March period.

It expected job cuts to remain elevated as rising cases of the respiratory illness across the country and unemployment undercut consumer and business spending.

COVID-19 was cited as the reason for 1.011 million of the 1.585 million job cuts this year. About 9,581 layoffs so far this year were due to bankruptcy.

Overall, the bulk of the job cuts have been at bars, restaurants, hotels, and amusement parks. Retailers and companies providing catering, linen, marketing, and administrative services have also laid off workers.

In the auto sector, manufacturers, suppliers and dealers have shed workers. But government, healthcare, technology, aerospace and defense are hiring. So far this year, 1.836 million hiring plans have been announced, with 75,454 in June.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Russian negotiator says no need to extend oil cuts beyond July: report By Reuters


2/2

© Reuters. Cheif Executive Officer of Russian Direct Investment Fund Dmitriev attends the St. Petersburg International Economic Forum

2/2

By Katya Golubkova

MOSCOW (Reuters) – The head of Russia’s sovereign wealth fund Kirill Dmitriev sees no point in extending strict global oil output cuts as world economies and oil demand recovers from the depths of the coronavirus crisis, he told the RBC Daily newspaper.

The comments from Dmitriev, who is one of Moscow’s top negotiators in oil talks, indicate that Russia wants curbs to be eased from August as envisaged by the existing plan.

The Organization of Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are cutting output by a record 9.7 million barrels per day (bpd), some 10% of global supply, after demand plunged by up to a third during the crisis.

A panel of the OPEC+ producers left the door open on Thursday to extending or easing those cuts from August, while pressing a number of countries, such as Iraq and Kazakhstan, to improve their compliance.

“We already see that economies have started to emerge from the coronavirus and markets are recovering, supporting oil demand, so there is no point to extend strict curbs for longer than a month (after July),” Dmitriev told RBC Daily.

The existing plans calls for the cuts to fall to 7.7 million bpd from August and stay at that level until December. It then envisages further cuts, easing to 5.8 million bpd from January 2021 through April 2022 when the pact is due to expire.

Oil prices have recovered to $42 per barrel from a 21-year low of below $16 in April. This is back at the level where Russia is balancing its budget and energy minister Alexander Novak said this week Moscow is happy with the current price.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Russia cuts rates to record low amid coronavirus crisis By Reuters


2/2

© Reuters. Russian Central Bank Governor Nabiullina attends a news conference in Moscow

2/2

By Andrey Ostroukh and Elena Fabrichnaya

MOSCOW (Reuters) – Russia’s central bank slashed interest rates on Friday to the lowest level since the collapse of the Soviet Union, pledging to consider the need for even lower rates amid waning inflationary risks and a shrinking economy.

The central bank delivered a deeper-than-usual cut of 100 basis points, taking the key rate to 4.5% , in the face of the crisis sparked by the coronavirus and the related lockdowns, in line with a Reuters poll. =eci>

Governor Elvira Nabiullina said the economy may feel the impact of the monetary easing in three to six quarters, adding that the strengthening rouble provides more room for monetary easing.

“We will further assess the feasibility of extra measures to ease our monetary policy, to lower the rate,” Nabiullina said at an online media conference, presenting the rate move.

Lower rates make lending cheaper, spur spending and could help relieve the economic contraction caused by the coronavirus outbreak, which has infected more than half a million people in the country.

Lower rates, however, are unlikely to have a strong direct impact on the economy’s post-pandemic recovery, analysts said.

Nabiullina said the central bank sees an increasing number of reasons to revise the 6% to 7% range it deems to be neutral monetary policy, which analysts said implied lowering that range.

In 2020, the central bank said, the economy will contract by 4% to 6% before returning to growth in 2021. Inflation is likely to finish the year close to the 4% target, peaking early next year, the central bank said.

Analysts split over the chances for more rate cuts.

ING said another 50-basis-point cut was “highly likely this year”, Capital Economics foresaw the key rate at 3.5% by year-end, and Sberbank said the central bank may consider lowering the key rate below the 4% inflation target.

Renaissance Capital said Friday’s rhetoric suggested the central bank’s rate reached its final level unless there is a new global wave of the coronavirus pandemic in coming months.

Nabiullina said the central bank’s base scenario does not envisages the risks of a second wave of the coronavirus.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Russia Cuts Rate Most in Five Years and Signals More Easing By Bloomberg



© Reuters. Russia Cuts Rate Most in Five Years and Signals More Easing

(Bloomberg) — The Bank of Russia cut interest rates by the most in five years and signaled another reduction is likely to help stimulate an economy heading toward a deep recession.The benchmark interest rate was cut 100 basis points to 4.5%, the lowest level since inflation-targeting began in late 2014, the central bank said in a statement on Friday. Policy makers warned that a slump this quarter could be worse than expected and inflation could “significantly deviate” from a 4% target next year.

“If the situation develops in line with the baseline forecast, the Bank of Russia will consider the necessity of further key rate reduction at its upcoming meetings,” the bank said.

A majority of analysts in a Bloomberg survey forecast the move, while a handful had expected a smaller reduction. Five-year government bond yields fell the most in more than a month to trade near a record low and the ruble largely held onto gains.

Governor Elvira Nabiullina will hold a news conference at 3 p.m. Moscow time Friday.

After years of keeping borrowing costs in Russia relatively high, Nabiullina turned dovish earlier this year as the economy of the world’s biggest energy producer took a double hit from the coronavirus pandemic and slump in oil prices. Government bonds have rallied in recent months in expectation of deeper rate cuts.

The economy is forecast to contract by 5.5% in 2020, almost double the global rate, while a recovery next year will be slower than elsewhere, according to the International Monetary Fund. The central bank has said the economy may shrink as much as 6% this year.

Inflation was at 3.1% in mid-June, the bank said, and a recent slump in consumer demand due to Russia’s coronavirus lockdown is likely to add to disinflationary pressures. A 13% surge in the ruble against the dollar this quarter will also curb price growth, the central bank said Friday.

What Our Economists Say:

“With price pressure so weak, the central bank is likely to ease further. Another move could come as soon as July, though on a smaller scale.”

–Scott Johnson, Bloomberg Economics

Economists at Citibank in Moscow said last month that Russia could end up cutting the rate as low as 3%, without specifying timing. Bank of America Merrill Lynch (NYSE:) was less dovish, forecasting 3.5%.

The rate reduction may erode a carry trade that has kept Russia’s government bonds and currency attractive to foreign investors in recent years, though other emerging markets are also easing monetary policy and the Federal Reserve has pledged to keep rates near zero.

“The ruble remains one of the highest yielding emerging-market currencies,” said Piotr Matys, a strategist at Rabobank in London. “The central bank may have to intervene verbally in the coming days or weeks if today’s cut doesn’t dent the ruble’s bullish momentum sufficiently.”

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Oil Up as Investors Keep the Faith on Production Cuts and Increasing Demand By Investing.com



© Reuters.

By Gina Lee

Investing.com – Oil was up on Friday morning in Asia, finishing the week by adding to gains from the previous session.

rose 0.51% to $41.72 by 10:11 PM ET (3:11 AM GMT) and gained 0.72% to $39.12.

Oil prices continue to be boosted by the outcome of Thursday’s OPEC-chaired panel to monitor compliance to OPEC+ members’ pledged cuts in April. Iraq and Kazakhstan, two of the countries who struggled to meet their target cuts, announced plans to compensate for their overproduction in May.

Investors are hopeful that the two countries will stick to their plan, which would take extra barrels out of the global supply, and allay an oversupply even if the OPEC+ cuts are not extended beyond their current expiry at the end of July.

Oil traders Vitol and Trafigura further boosted investor sentiment on Thursday by commenting on a demand rebound in June.

Comments from global oil traders Vitol and Trafigura on a rebound in oil demand in June, reported by Bloomberg, also buoyed the market, ANZ Research said.

Vitol Chief Economist Giovanni Serio told the press, “Our short-term tracking of demand confirms a healthy demand recovery from the lows of April…China led the recovery in April and May and in the past couple of weeks, U.S. and European countries have followed.”

Meanwhile, Ben Luckock, co-head of oil trading at Trafigura, added, “Oil demand is creeping back…globally, we are probably back to 90% of normal levels, but the exact percentage varies with the location.” Chinese oil demand is back to levels before the coronavirus, he said.

But other investors were skeptical of a big push higher for the black liquid.

CMC Markets chief strategist Michael McCarthy told Reuters that trading volumes on Friday were thin, and that there was strong resistance in WTI contract between $40 and $41, a level seen by analysts as the point at which more U.S. producers could revive shut-in wells.

These factors “militate against aggressive long side trading,” he said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil climbs over 2% after OPEC+ extends output cuts to end-July By Reuters



© Reuters. File photo of a worker walking past a pump jack on an oil field owned by Bashneft, Bashkortostan

By Florence Tan

SINGAPORE (Reuters) – Oil prices rose more than 2% early on Monday to their highest in three months after OPEC and its allies including Russia agreed to extend record oil production cuts until the end of July.

Brent crude () climbed to as high as $43.41 a barrel and was trading at $43.32 by 0000 GMT, up $1.02, or 2.4%. U.S. West Texas Intermediate (WTI) crude () gained 83 cents, or 2.1%, to $40.38 a barrel. Both hit their highest since March 6.

Brent has nearly doubled since the start of April, propped up by an unprecedented production cut of 9.7 million barrels per day by the Organization of the Petroleum Exporting Countries (OPEC), Russia and allies.

The OPEC+ group prolonged on Saturday the deal to withdraw almost 10% of global supplies from the market by a third month to end-July.

Following the deal, world’s top exporter Saudi Arabia sharply raised its monthly crude prices for July.

Still, compliance to the agreement among OPEC members such as Iraq and Nigeria remains an issue.

“While the errant producers such as Iraq and Nigeria have vowed to reach 100% conformity and compensate for prior underperformance, we still think they will likely continue to have some commitment issues over the course of the summer,” Helima Croft, head of global commodity strategy at RBC Capital Markets, said.

“The potential return of Libyan output could also cause considerable challenges for the OPEC leadership.”

In southwestern Libya, two major oilfields have reopened after months of a blockade that shut off most of the country’s production.

Even as oil prices recovered, they are still well below the costs of most U.S. shale producers, leading to shutdowns, layoffs and cost cutting in the world’s largest producer.

The number of operating U.S. oil and rigs fell to a record low for a fifth week in a row in the week to June 5, according to data from Baker Hughes Co (N:).

Nearly 30% of U.S. offshore oil output was also shut on Friday as tropical storm Cristobal entered the Gulf of Mexico.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Emirates, Etihad extend temporary salary cuts to September By Reuters


2/2

© Reuters. FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in London

2/2

By Alexander Cornwell and Aziz El Yaakoubi

DUBAI (Reuters) – Gulf carriers Emirates and Etihad Airways are extending the period of reduced pay for their staff until September as they try to preserve cash during the global coronavirus pandemic.

The aviation industry has been among the worst hit by the outbreak, which has dented travel demand and forced major airlines to lay off staff and seek government bailouts.

State airlines Emirates and Etihad have operated limited, mostly outbound services from the United Arab Emirates since grounding passenger flights in March.

They are due to restart some connecting flights this month after the UAE last week lifted a suspension on services where passengers stop off in the country to change planes, or for refuelling.

Dubai’s Emirates told employees on Sunday it would extend a three month wage cut due to end this month until September 30, according to an internal email seen by Reuters.

In some cases, pay cuts will also be deepened, with some basic salaries reduced by 50%, the email to Emirates Group employees said.

The decision was made after reviewing all possible options to preserve its cash position, it said.

State-owned Emirates Group, which employed 105,000 as of March and includes the airline among its assets, did not immediately respond to an emailed request for comment.

Emirates had previously reduced basic wages reduced by 25% to 50% for three months from April, with junior employees exempted.

Abu Dhabi’s Etihad Airways has extended its salary cuts of between 25% to 50% to September, a spokeswoman said, as it considers all options to protect jobs and preserve cash.

The airline originally reduced salaries for the month of April.

Etihad last week laid off some cabin crew and its not planning any further crew redundancies, according to emails seen by Reuters.

The spokeswoman said there have been redundancies across several areas of the airline, and last month sources told Reuters Etihad was planning to lay off 1,200 employees.

Like other airlines, Emirates and Etihad have laid off staff due to the impact of its business. Fellow Gulf carrier Qatar Airways has said it could lay off up to 20% of its employees.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



OPEC and allies to agree one-month extension to output cuts By Reuters



© Reuters. FILE PHOTO: A 3D printed oil pump jack is seen in front of displayed Opec logo in this illustration picture

BAGHDAD (Reuters) – OPEC and its allies led by Russia are “most likely” to agree on a one-month extension to an oil production cuts deal on Saturday, an OPEC delegate said.

The delegate, who spoke on condition that he not be identified, said: “It is most likely that the meeting today will result in an extension of the agreement for one month only. This is the general trend within OPEC+.”

The oil producing states meet on Saturday to approve extending record oil production cuts and to push countries such as Iraq and Nigeria to comply better with existing curbs.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Volkswagen considering more cost cuts to cope with downturn


FILE PHOTO: A worker wears a protective mask at the Volkswagen assembly line after VW re-starts Europe’s largest car factory after coronavirus shutdown in Wolfsburg, Germany, April 27, 2020, as the spread of the coronavirus disease (COVID-19) continues. Swen Pfoertner/File Photo

BERLIN (Reuters) – Volkswagen <VOWG_p.DE > is considering more cost cuts to help cope with the economic impact of the coronavirus pandemic, a spokesman for the German automaker said on Saturday.

The issue was recently discussed at an internal event, the spokesman said, when asked about a report in industry magazine Automobilwoche.

“There were general deliberations about what further cost measures could be taken to respond to the pandemic,” the spokesman told Reuters. “There are no concrete decisions yet.”

Automobilwoche quoted Volkswagen CEO Herbert Diess as telling top managers at a meeting on Thursday: “We must significantly cut R&D expenditure, investments and fixed costs compared with the previous planning.”

The group’s net liquidity would “continue to decline at least until July due to weak demand”, the magazine, citing participants at the event, quoted Diess as saying, adding that not all group brands would achieve a positive result in 2020.

This meant the main VW passenger car brand must reduce its so-called material overheads by 20%, the magazine said.

Reporting by Jan Schwartz; Writing by Paul Carrel; Editing by Mark Potter



Source link