Economy
World economic news now by the morning of Dec. 6
The FT reported on tanker jams in the Turkish straits due to the Russian oil price ceiling, and NATO analysts assessed the Bank of Russia’s foreign currency reserves seized abroad – these and other world economic news now for the morning of Tuesday, December 6, read more.
Economic news around the world
A tanker jam has formed near the Turkish Bosporus and Dardanelles straits, through which ships carrying Crude Oil from Russian Black Sea ports pass. Turkish authorities demanded insurers fully insure ships passing through the straits, after the G7 countries, the European Union and Australia imposed a ceiling on oil prices from Russia, said the Financial Times.
The newspaper’s sources claimed that ships with Western insurance coverage were delayed, while ships with documents from Russian insurers were allowed through Turkish waters.
The U.S. and European Union countries have managed to seize no more than a third of Russia’s foreign currency reserves blocked abroad. According to the Atlantic Council, this is $80-100 billion out of a total of $300 billion in foreign currency reserves.
India is in discussions with Apple (NASDAQ:AAPL) to locate iPad production in the country and is exploring options for shipping components for them from China, CNBC reported, citing two sources close to the Indian government. Plans have no specifics so far, but if negotiations with Indian authorities are successful, Apple will expand its presence in the country.
A federal court in Australia has asked UC Rusal (MCX:RUAL) for documents on alumina supplies to Queensland Alumina (QAL), the aluminum company’s ties with the Russian government and entrepreneurs under sanctions, Kommersant reported, citing court data. The documents were asked by the court on the claim of Alumina and Bauxite Company, an Australian “subsidiary” of UC Rusal: it owned 20% of QAL; the share went to Rio Tinto (LON:RIO), which had the remaining 80% of the company.
Earlier we reported that the average house prices in the UK fell by 1.4% in November.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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