A few months ago,
predictions were that the oil market for 2020 would be the one to look out for
as “many market commentators predicted
that if $100/bbl-oil was going to make a comeback, it would happen in 2020,”
according to Bloomberg. But the release of the first official assessment of
2020 by the International Energy Agency on Friday shows persistent surpluses
could be accumulated next year. This does not indicate rising prices, which were
previously predicted and the reason why investors kept a keen eye on the oil
German exports fell
by 0.5 percent from April 2018 to April 2019, according to the Trade Balance
report released by the Statistisches Bundesamt Deautschland
The overall German
export value for the month of April 2019 was estimated to be 109.7 billion euros,
while the value of imported goods stands at 91.7 billion euros. In contrast to
German exports, imported goods increased by 2.1 percent in April 2019 year on
year. “After calendar and seasonal
adjustment, exports were down 3.7 percent and imports 1.3 percent compared with
March 2019,” the report states.
withdrew its proposal to merge with French automaker Renault due to the lack of
political conditions that would ensure a successful deal.
The talks between the
two automobile companies have been going on since May and after a series of late-night
meetings, the French government requested a vote for or against the merger to
The French government
owns 15 percent of Renault and as it did not see assurances on a number of
matters, including job security, it hoped for more time to complete the merger.
The hot topic lately
in the news is trade. During President Donald Trump’s state visit to Britain
and his meeting with Prime Minister Theresa May, he encouraged the UK to get Brexit
over with so that the U.S and the UK could come to a trade deal. According to
Bloomberg, Trump said that a deal would triple trade between the two countries.
In other news,
Chinese President Xi Jinping said that China’s economy is stable, healthy and
well placed to meet all risks and challenges, according to a transcript
published by the Xinhua news agency just before Xi’s state visit to Russia.
The British Retail
Consortium (BRC) released its Like-For-Like Retail Sales report, which measures
changes in the actual value of retail sales from participating companies with
invaluable management information on a regular and reliable basis. For May this
report showed retail sales dropped by 2.7 percent, which is the biggest drop
This drop can be
explained, in part, by the fact that last year the UK saw lots of sunshine
around this period, the World Cup was on and the royal wedding gave everyone
something to cheer about, giving people more incentives to spend.
The Markit Economics
released the Caixin China Manufacturing Purchasing Managers Index (PMI) this
morning, showing that operational conditions have improved slightly for May.
According to the
index, total new work rose at a fast pace for Chinese manufacturing firms in
May. Export sales also saw an increase while production was broadly stable. As
production rose and employment levels remained the same, a backlog of work
continued to be on the rise.
In his latest bid to control illegal immigration from
Mexico, U.S President Donald Trump has announced that all goods coming from
Mexico to the U.S will carry a tariff of up to 25 percent.
In a tweet he stated that as of June 10 there will be
a five percent tariff put on all imports coming into the U.S from Mexico, and
this will slowly rise “until such time as illegal migrants coming through
Mexico, and into our Country, STOP. The Tariff will gradually increase until
the Illegal Immigration problem is remedied.
As the world’s two
largest economies, the U.S and China, show no signs of coming to some kind of
agreement when it comes to the trade war, the Dollar reached an almost two-year
high yesterday at 98.371, while the world fears for the worst.
Trade talks have been
going on for ten months now and with President Donald Trump raising tariffs on
Chinese imports earlier on in the month, the economies on both sides of the
Atlantic are continuing to feel the strain.
An ongoing effort is
needed to strengthen the New Zealand financial system, stated the Governor of
the Reserve Bank of New Zealand, Adrian Orr, during a speech, while releasing
the May financial stability report.
As the financial system
risks remain high, the governor suggested that increasing financial institutions’ capital positions are central to ensuring that they can withstand severe shocks. In order to put this
plan in action, Orr said “we have proposed higher capital requirements for banks
and are currently reviewing public submissions on this proposal.
Consultancy firm Duff
& Phelps released a survey today showing that the city of New York has
overtaken London as the world’s pre-eminent financial centre. This shift,
according to the survey, is down to Brexit and all the uncertainty surrounding
Britain’s delay in leaving the European Union.
The annual Global
Regulatory Outlook survey asked 180 executives in asset management, private
equity, hedge funds, banking and brokerage where they thought the top financial
centre is located.