close

Economy

Economy

Economy

Economists cut Brazil'azines 2017 growth view down below 1 percent: poll

20161201520.jpg


A woman walks on this beach as the sunshine sets between properties in Recife June 13, 2016. REUTERS/Brian Snyder/File Photo

BRASILIA (Reuters) – Brazil’s economy will likely grow less than One percent in 2017, emerging from a harsh recession not so quick than previously expected, a weekly central bank study showed on Wednesday.

Economists cut their median forecasts for Brazil’azines gross domestic product in 2017 for that sixth straight few days, to 0.1996 percent, the central bank said.

A Reuters study on Friday additionally showed economists forecasting growth to be less than 1 percent next year.

Statistics organization IBGE will publish third-quarter GDP data on Mondy, probably to show how the one of the longest recessions during Brazil’s history had taken a turn for your worse. Brazil’s market is expected to shrink in excess of 3 percent for a next straight year inside 2016.

(Reporting by Silvio Cascione; Updating by Catherine Evans)

read more
Economy

Greece needs to present commitment to rescue software: ECB's Coeure

20161201517.jpg


Benoit Coeure, member of the Executive Plank of the European Principal Bank (ECB), attends your Lamfalussy Lectures Conference within Budapest, Hungary February 1, 2016. REUTERS/Laszlo Balogh

FRANKFURT (Reuters) – Greek authorities need to begin with terms of the country’s rescue program, including additionally structural and products market reforms in addition to privatizations, to pass a bailout assessment, ECB Executive Board fellow member Benoit Coeure said on Monday.

“To bring the program to the successful conclusion and then to restore market access for the sovereign on a permanent basis, it is specifically essential that the Language of ancient greece authorities continue to indicate a serious commitment to any goals and options taken under the plan,” he said at an occasion in Athens.

(Reporting through Francesco Canepa; Editing by Catherine Evans)

read more
Economy

Dollar nurses damages as investors look to OPEC, US data

20161201432.jpg


Four thousand U.Verts. dollars are counted out there by a banker counting currency at a financial institution in Westminster, Colorado Don’t forget national 3, 2016. REUTERS/Rick Wilking/File Photo

TOKYO (Reuters) – The bill nursed losses on Tuesday because U.S. Treasury yields came off of the multi-month highs, while shaky crude oil prices previous to this week’s fat producers’ meeting kept investors’ possibility appetite in check.

Since the particular victory of You actually.S. President-elect Donald Trump regarding Nov. 8, any dollar has leaped in line with yields with U.S. Treasury draws together, which have sold off for expectations that the Trump current administration will embark on stimulus policies and strengthen inflation.

These expectations made it simpler for push up the benchmark 10-year Treasury yield <US10YT=RR> to a 16-month large last week. [U/S]

The dollar were standing at 111.96 yen <JPY=>, off their overnight low connected with 111.35 yet well below a good 8-month high of 113.90 highlighted Friday.

“The buck has been pulling returning now in response to volatile oil charges, after rising upon expectations of what Trump is going to do,” said Mitsuo Imaizumi, chief forex strategist at Daiwa Securities throughout Tokyo.

“Against the yen, it could even drop back to the One hundred ten level, depending on just what exactly oil does, and then we also have U.Ohydrates. data this week – although right now, the employment information seem like a long time at a distance,” he said.

Crude oil price tags have been on a journey ride this week, since the market reacted towards the developments on regardless of whether major producers could reach an agreement on the contentious issue regarding output cuts in their meeting on Wed. [O/R]

Later on Tuesday, investors looks to U.Vertisements. third-quarter gross domestic product data in addition to readings on customer confidence and ingestion for trading sticks. They will be followed by any November employment set of Friday.

Data released early on Tuesday showed that Japan’vertisements unemployment rate inside October held regular as the availability of work opportunities improved and domestic spending fell in a slower pace, any tentative sign than a robust labour companies are lending support that will domestic demand.

Political challenges kept the ruskies in check, though it nonetheless managed to post a virtually two-week high of $1.0686 <EUR=> overnight. Them last traded during $1.0615, flat from delayed Monday’s North American stages.

Worries about Italy’s bank system have been mounting ahead of a 12. 4 referendum on constitutional modify, which could unseat the government associated with Prime Minister Matteo Renzi.

More than Ten billion euros connected with legal claims versus Monte dei Paschi di Siena <BMPS.MI>, its malfunction liquidity and the prospect of more bad loan product writedowns are among risks the bank says might scupper its 5-billion-euro rescue method.

The dollar index, which usually tracks the greenback against a basket of six major opponents, scaled a nearly 14-year summit of 102.05 <.DXY> on Thursday night before profit-taking and fat jitters brought it all back down to the earth. It was last in 101.160.

(Coverage by Tokyo areas team; Editing by means of Shri Navaratnam)

read more
Economy

Trump faces dilemma seeing that U.S. oil reels from record biofuels targets

20161201514.jpg


U.S. President-elect Donald Trump signals from the front door at the main clubhouse with Trump National Golf Club with Bedminster, New Jersey, U.S., November 20, 2016. REUTERS/Mike Segar

NEW YORK (Reuters) – The Obama administration autographed its final cover renewable fuel use within the United States last week, causing an oil field reeling from the most aggressive biofuel targets yet still as President-elect Donald Trump starts.

The Renewable Fuel Standard (RFS) program, signed within law by Lead designer George W. Plant, is one of the country’s many controversial energy guidelines. It requires energy corporations to blend ethanol and biodiesel straight into gasoline and diesel fuel.

The policy was designed to lower greenhouse gas pollution, reduce U.Azines. reliance on oil imports as well as boost rural savings that provide the harvest for biofuels.

It has uneven or dimpled skin two of Trump’s assist bases against 1 another: Big Oil and Big Corn. The producing sector has lobbied challenging for the maximum biofuel volumes laid out in the law to be mixed thoroughly into gasoline continuous-duty motor fuels, while the oil industry argues that your program creates even more costs.

Balancing oil and farm interests is probably going to prove a challenge intended for Trump, who has promised in order to curtail regulations on the oil industry although is already being reminded by biofuels advocates within the importance of the program on the American Midwest, where he received strong support from voters for Nov. 8.

Oil categories are renewing their calls to change or repeal the program following Wednesday’utes announcement, when the Epa (EPA) set track record mandates for sustainable fuels – for the first time punishing levels targeted by Congress nearly revealed..

The EPA plan is “fully detached from marketplace realities and verifies once again that Institutions the first must take immediate activity to remedy this ruined program,” said Chet Thompson, Lead designer of the American Gas and Petrochemical Manufacturers, from a statement.

It is not clear what Trump’s programs for the program is going to be and his transition crew did not respond to Reuters’ asks for comment.

Both camps are expecting an supervision receptive to their involves, though both have stated concern and hesitation over Trump’s designs for the program, according to experts, industry and politics sources.

The installation of climatic change skeptic Myron Ebell as travel of the transition on the EPA bolstered acrylic industry confidence Trump could swing their way. In September, Trump gave the impression to briefly echo the actual views of his / her supporter, billionaire Carl Icahn, who expressed concern about this method.

Icahn, who owns a position in an oil refiner, renewed those criticisms last week, expressing the ethanol credit promote generated by the plan is susceptible to adjustment and harming separate refiners.

PRO-ETHANOL CAMPAIGNING

The president-elect campaigned on a pro-ethanol platform when he visited America’s farmville farm states and biofuels promoters expect he will keep RFS strong, maintaining twelve-monthly targets at the minimum set forth by Congress.

“Mister. Trump will not turn their back on the American heartland, we believe in them,” said Annette Sweeney, a former think representative from Iowa who was a member of any Trump’s agricultural advisory committee during his candidacy.

“To a certain extent, were on higher earth. You always want to be with higher ground,” mentioned Bob Dinneen, head in the Renewable Fuels Organization, referring to the increase.

“I will be able to demonstrate the industry can absorb 12-15 billion gallons with ethanol. We can put doing this behind us. Once we look to 2018… there’s no reason at all to go back,” he said.

The renewables sectors have already started to focus on their place among the American-made fuels, something professionals expect will appeal to help Trump.

“There are a lot of good circumstances to be said concerning second-generation fuels, even with the new administration’s perspective,” proclaimed Harvard University mentor and former National government advisor James Share.

“All the new managing needs to do is usually embrace the original … eye sight of the RFS,” he said.

(Editing by Simon Webb and Alistair Bell)

read more
Economy

Bargain prices, mounting cargo rates boost second-hand ship sales with the shallows

20161201425.jpg


The homepage of the NautiSNP dispatch trading website directories ships for sale Nov 23, 2016. Picture taken Don’t forget national 23, 2016. REUTERS/Thomas White

SINGAPORE (Reuters) – Sales for second-hand ships used to transport commodities such as in terms of iron ore, coal, grain as well as fertilizer have attack a seven-year high in 2016 for the reason that industry creeps away from an eight-year downturn who has sunk several fleets of shippers.

Seaborne transfer, which accounts for Eighty-five percent of global trade, has witnessed a tentative recuperation in the rates shippers demand to carry dry-bulk cargoes, which has invited buyers to jump within the bargain prices intended for second-hand vessels.

Nearly 560 such dry-cargo vessels, which as a category make up half the particular world’s merchant fleet, have changed hands within deals worth $4.Three billion up to the end of November, data coming from shipbroker Clarkson showed, the highest multitude since 2016.

“We’ve viewed a lot of interest via Asian buyers inside 10-15 year old ships, that is certainly partly due to the boost in rates,” said Ziad Nakhleh, managing director of Greek owner Teo Shipping Corporation.

“Organic mineral demand from China and taiwan is one of the bright destinations for dry volume,” he told Reuters.

Teo Shipping has put a 15-year ancient 74,107 deadweight tonne (DWT) panamax bulk tote called the Cretan Wave on the market at a price tag involving $4.65 million, according to the nautisnp.internet website.

It is one of numerous dry cargo lines on the market at traditional and online brokers.

“We think the sector is actually approaching a level after a long period regarding depressed rates,” reported Aristides Pittas, chairman and leader of dry size owner Euroseas <ESEA.O>, which has not too long ago agreed to buy the Capetan Tassos, any 16-year old 75,75 DWT bulk carrier for $4.4 million.

After crashing to its lowest level about record earlier this year, the actual Baltic Dry Bulk Crawl <.BADI>, a basket of shipment rates to transport dry raw materials like golf club ore, coal and almond, has soared in excess of 300 percent to one,257 points, albeit however way off it is almost 12,000 point peak coming from 2016.

“It does make far more financial sense to order second-hand at the moment than obtain new-builds, given the very enticing prices,” said Rob Leszczynski, head of exploration at ship agent Banchero Costa (Bancosta) in Singapore.

A five-year old One hundred and eighty,000 DWT iron ore as well as coal carrier expenses around $24 million currently compared with $39 million during 2016. A 10-year-old, 32,000-tonne boat to carry fertilizer, firelogs or steel goods is worth around $6.Eight million now from $12.5 million 2 yrs ago, according to data from shipping expertise firm Clarkson.

DEMAND-SUPPLY REBALANCING

The revenues individuals cheap ships might generate is on the rise. Regular rates for large One hundred eighty,000 DWT ships, known as capesize, had plunged to a number exceeding $2,800 per day right after January, about 60 percent below daily working costs of $7,2 hundred, but have since recovered to around $22,1000 per day, ship specialist data showed.

While most of the recovery is cyclical – the very first quarter is ordinarily the weakest for dry bulk shipment, and the fourth three months the strongest – freight interest rates have been buoyed by a rebalancing throughout cargo demand plus vessel supply.

The number of new ship orders dropped to its minimum in more than 30 years in the very first eight months involving 2016, Clarkson figures show, even though the scrapping of older dried up cargo ships hit an all-time record inside the first half of 12 months, says Bancosta.

Tougher controls through September 2017 on seawater pumped in and out of warships could see the demolition of up to 2,700 vessels in a universal fleet of 9,500 dry bulk lines over 20,One thousand DWT, according to a report in mid-November by Bancosta.

Brokers and consultants said the cost of upgrading older vessels didn’l make financial sense.

Cargo demand, in the mean time, is set to rise One percent this year after zero growth last year, Bancosta reported.

“There are people thinking ship prices are inexpensive, and if they support the vessel for two or three years they may view a serious return,” mentioned Nick Shaw, head with shipping at attorney Reed Smith in London.

For all of that, after a downturn of which triggered bankruptcies around the world, including Korea’s Hanjin Delivery, one of the world’s major container shippers, the industry still needs some way to go to go back to health.

“Dry-bulk may be journey critical list, however , it’s still lying down on a hospital base feeling rather remorseful for itself,” said Martin Rowe, managing director of shipbroker Clarksons Platou Asia inside Hong Kong.

And though the metrics get improved, the group size is still outgrowing the rise in trade, as outlined by Clarkson – a 1.9 percent development of bulk carrier tonnage versus a 1 percent increasing amount of cargoes this year.

“We need far more scrapping, no newbuildings, and expanded trade growth to revive the dry-bulk market to wellbeing,” said Rowe.

(Reporting by means of Keith Wallis; Editing by Henning Gloystein and definately will Waterman)

read more
Economy

India launches different tax evasion amnesty scheme for you to unearth unaccounted cash

20161201511.jpg


India’s Finance Minister Arun Jaitley signs as he addresses a celebration during a seminar about ‘Income Declaration Scheme-2016’ in Ahmedabad, In india, July 10, 2016. REUTERS/Amit Dave

NEW DELHI (Reuters) – American indian Finance Minister Arun Jaitley about Monday unveiled any scheme to give tax dodgers another chance to occur clean, as he looked for to bring billions of money worth of undeclared income into the mainstream economy.

The relocate follows Prime Minister Narendra Modi’verts decision to small bit 500-rupee and 1,000-rupee banknotes from a bid to flush away cash earned through illegal activities, or even earned legally however never disclosed.

Under the actual proposed scheme, people making the affirmation would have to pay Fifty percent in taxes along with surcharges. The individual would likely also have to park 25 % of the total total in a non-interest bearing pay in for four years.

While Jaitley needs the scheme for you to discourage tax evaders out of laundering their ill-gotten money, experts said there was no better alternative to brushing tax reforms.

“Since it offers clarity on what unaccounted cash will be subject to taxes, it can help in cleaning up the cash economy,” reported Vishal Malhotra, a tax lover at Ernst & Young.

“But the truth is must follow it up with a drastic reduction in levy rates to improve compliance.”

In the first week after India’s so-called “demonetization” drive, financial institutions received $74.2 million in fresh deposit. Analysts at HSBC anticipate the deposits for you to swell by $164 billion by end-December.

The surge in remains, particularly in previously unfilled accounts, has shocked tax authorities who seem to fear poor customers are being lured into laundering money on part of big-time tax evaders.

The new scheme comes slightly a month after a similar drive managed to uncover $9.5 billion within undeclared income and means. But with cash projected to make up only 6 percent of adulterous wealth, the disclosures might not be of the same amount.

Last year, an amnesty geared towards unearthing foreign belongings fell short mainly because fewer than 700 folks availed of it, shelling out about $364 million inside taxes.

Modi’s current administration has billed a “demonetization” drive a “operative strike” on black funds, which has sucked away 86 percent of money in circulation and also pushed Asia’s third-largest financial system to the brink on the liquidity crisis.

Opposition celebrations led by Our elected representatives have stalled parliament, demanding a reply from Modi along with compensation for the families of dozens of people described to have died even though queuing at banking institutions to swap old money for new.

On Tuesday, they took to your streets protesting against Modi’ohydrates decision to call off 500-rupee and 1,000-rupee banknotes while legal tender.

(Canceling by Rajesh Kumar Singh; Editing by means of Douglas Busvine and Clarence Fernandez)

read more
Economy

UK consumer credit growth hits 11-year high, bank loan approvals strong – Bank of England

20161201416.jpg


A blue sky is viewed above the Bank with England in the City of London, Britain, October 3, 2016. REUTERS/Peter Nicholls

LONDON (Reuters) – Lending that will Britons expanded last month at the fastest once-a-year pace in 10 years and mortgage house loan approvals were stronger when compared with expected, bolstering the image of resilient buyer demand after June’vertisements Brexit vote.

Consumer credit amplified last month by Just one.62 billion lbs, up from An individual.48 billion pounds in September and also taking the annual growth rate to 10.5 % – the strongest since April 2005, Bank involving England data highlighted on Tuesday.

Mortgage approvals designed for house purchases greater to 67,518 around October from Sixty three,594 in September. Professionals in a Reuters poll possessed forecast 65,One thousand mortgage approvals were made in October.

Britain’vertisements economy has done much better?than nearly all economists had required in the immediate results of June’s election?to leave the European Union, together with households showing number of signs of being fazed by the referendum result.

Less all-inclusive figures from the Uk Bankers’ Association also confirmed consumer lending matured in October along at the fastest pace during nearly 10 years.

But?an even bigger test awaits within 2017.

Rising inflation caused by the particular pound’s post-referendum?plunge looks set to fit household spending?together with economists said they still expected?enterprise investment?to?slow.

Recent sentiment surveys recommend households are becoming increasingly concerned about inflation after the pound’s post-Brexit vote jump.

The Bank of Great britain expects consumer price tag inflation to optimum at around 2.75 percent next year – some way higher than its 2 percent target.

The BoE said organization lending increased to get a second month back to back, rising 3.17 billion pounds via 1.0 billion dollars in September in addition to marking the largest economic recovery since February.

Mortgage offering in cash terms increased 3.Twenty-eight billion pounds, upward slightly from September’ersus 3.26 billion pound rise.

Earlier that month the Regal Institution of Chartered Surveyors claimed house prices raised in October along at the fastest pace given that April, adding to tentative signs a recent decline in the market is now easing.

(Reporting by Andy Bruce and Adela Suliman)

read more
Economy

Singapore central bank shows banks must shield against rising bad loans

20161201419.jpg


The logo of the Economic Authority of Singapore (MAS) is pictured at a building in Singapore during this February 21, 2016 submit photo. REUTERS/Edgar Su/File Photo

SINGAPORE (Reuters) – Singapore’s core bank on Tuesday urged the city-state’s bankers to guard against the potentially protracted economic downturn amid a rise in bad loans, but reported the financial system is always capable of withstanding a severe stress event.

In it is annual financial balance report, the Economical Authority of Singapore stated its stress examination found the banking system to be resilient regardless that banks’ provisioning cover was all the way down at 98 percent at the end of the third district.

“The banking system’verts overall NPL ratio has expanded over the past year alongside the weakening economy and emerging property quality risks,” this MAS said. (http://bit.ly/1kW3kez)

“Banks must continue to maintain tone credit underwriting standards, and set aside adequate conditions to withstand more NPLs should the economic slowdown end up being protracted.”

The central bank’s review comes at a time anytime bad debt expenses among Singapore banks currently have jumped as credit rating woes deepen to your offshore energy solutions sector, which has been success hard by a nearly two-year rout in oil price tags and a slowing economic climate.

The banking system’s total non-performing loan (NPL) ratio rose to 2.1 percent within the third quarter involving 2016 from 1.5 percent a year ago, the MAS explained. The aggregate NPL coefficient of local business banking groups’ edged up to A person.4 percent, it put in.

The banking system’s combination exposure to the gas and oil prices and related boosting services sector ended up being less than 10 percent involving total exposures, the MAS explained.

Results of an industry-wide stress analyze showed banks will be able to absorb losses under severe economic worries, such as a protracted slowdown throughout China’s economy together with steep falls inside commodities and Hard anodized cookware currencies, the middle bank said.

“Many banks would keep on being solvent, with their investment adequacy ratios (CARs) remaining well above Basel regulatory requirements under the stress scenarios,” the MAS explained.

Corporate sector leverage remained broadly stable, while using corporate debt-to-gross domestic product or service (GDP) ratio obtaining stabilized at around A hundred and fifty percent of GDP since 2016, the key bank said.

Still, hazards from heightened corporate leverage remain between declining earnings and firms should take steps in order to deleverage where possible as well as refinance existing financial debt at favorable rates, the MAS added.

The main bank said family members continued to deleverage after having a series of macroprudential measures were definitely introduced since 2016. Household debt growth moderated to 2.8 percent year-on-year within the third quarter, decrease from an average of Half-dozen.9 percent year-on-year over the last several years.

“On an aggregate groundwork, Singapore’s household steadiness sheets are sturdy, with aggregate world-wide-web wealth at a wholesome four times of Gross domestic product,” it said.

(Canceling by Masayuki Kitano; Editing by just Shri Navaratnam)

read more
Economy

Eurogroup should be 'realistic' on Greece fiscal targets: Dijsselbloem

20161201404.jpg


Dutch Finance Minister plus Eurogroup President Jeroen Dijsselbloem attends some sort of euro zone finance ministers meeting in Brussels, Belgium, November Several, 2016. REUTERS/Yves Herman

BRUSSELS (Reuters) – The chair in the Eurogroup of euro location finance ministers said on Tuesday that European loan companies should be “realistic” in the financial targets they trying to find Greece after 2018, each time a program of financial guide will end.

“We need to be sensible,” Jeroen Dijsselbloem told the economic affairs committee of the Eu Parliament, saying that the Worldwide Monetary Fund contains a point when it states “running a primary excessive of 3.5 percent for just a very long time is a huge aspect to ask”.

Dijsselbloem’s remarks are provided a few days before a good Eurogroup meeting in Belgium’s capital on Dec. Several, when ministers are set to decide for how long Greece need to maintain a primary price range surplus – which limits debt servicing expenditures – of 3.5 percent right after 2018, when its present program of financial help expires.

(Reporting simply by Francesco Guarascio; Editing by Alastair Macdonald)

read more
Economy

Russia says here we are at OPEC and non-OPEC meeting continue to being discussed

20161201410.jpg


OPEC logo is imagined ahead of an informal meeting between members of the group of the Petroleum Forwarding Countries (OPEC) in Algiers, Algeria November 28, 2016. REUTERS/Ramzi Boudina/File Photo

MOSCOW (Reuters) – Time for OPEC and also non-OPEC meeting to discuss world oil production cope is still being discussed, Ruskies Energy Ministry spokeswoman told Reuters on Tuesday.

She also reported Russian Energy Minister Alexander Novak had always said that Russia does not take part in OPEC conferences. Earlier on Tuesday, Novak ended up being quoted as stating he was not participating in OPEC talks in Vienna in Nov. 30.

(Filing by Olesya Astakhova; writing by just Denis Pinchuk; editing by Katya Golubkova)

read more