Britain will build around 1.8 million cars in 2017, less than originally expected, due to more sluggish growth in Europe, industry body the Society for Motor Manufacturers and Traders said on Tuesday.
At a camp for oil workers here, a collection of 16 three-story buildings that once housed 2,000 workers sits empty. A parking lot at a neighboring camp is now dotted with abandoned cars. With oil prices falling precipitously, capital-intensive projects rooted in the heavy crude mined from Alberta’s oil sands are losing money, contributing to the loss of about 35,000 energy industry jobs across the province.
“The policy arsenal in the advanced economies is unfortunately very depleted, debt is still higher in the non-financial sector than it was in 2007. So we are really sitting in the sea watching the tide go out and not really able to respond effectively to the way we should.”
Swedish central bankers are now looking at the country’s 240 billion-krona ($30 billion) municipal bond market as a possible channel for further stimulus as its debt purchases risks distorting trading in government debt.
Light-vehicle sales in China expanded at the slowest pace since 2012 so far this year, underlining the slump in demand that prompted the government to cut a tax on car purchases to revive demand in the world’s biggest auto market.
In his first public appearance since being appointed to the Monetary Policy Committee (MPC), Gertjan Vlieghe told MPs the Bank could reduce its benchmark interest rate and carry out more quantitative easing if required.
Do not believe in official statistics, Japanese retailers seem to be saying, as they cut earnings forecasts and warn of lackluster consumer spending, a key growth engine for Japan at a time when exports and factory output are stalling.
It was only the second largest monthly increase to the record high of a 10.1 trillion expansion in April this year. The surging trend came as the central bank lowered the benchmark interest rate to an all-time low of 1.5 percent in June after cutting it by a percentage point in March.
The Commission believes Spain’s budget deficit will be 4.5 percent of gross domestic product in 2015 instead of the required 4.2 percent. The discrepancy will widen in 2016, it has forecast, with an estimated deficit then of 3.5 percent of GDP, against a 2.8 percent agreed target. EU rules require that national deficits should not go beyond 3 percent of GDP.
Speaking at an engineering conference in Berlin, Schaeuble described interest rates as “too low” and said this was causing problems, particularly with regard to pension provisions.
The Riksbank kept its key repo rate unchanged in September at a negative 0.35 percent and stood by a message that it was ready to do more if inflation did not continue to pick up. Floden repeated that the Riksbank was ready for further expansionary measures. “We are not sure inflation is rising as forecast,” he said in an interview.
“In the event that the downward risks I have mentioned weaken the inflation outlook over the medium term more fundamentally than we currently project, we would not hesitate to act,” he said. –
“We will have to rely on policy stimulus to safeguard the 7 percent growth target,” said an economist from a government think-tank. “We should not put financial liberalization at the forefront of economic reforms.”
If economic growth in South Africa this year is bad news, 2016 is set to be even worse, according to the International Monetary Fund.
Britain’s muted prices highlight how central banks around the world are sharply undershooting their inflation targets despite deploying large-scale stimulatory policies.
The Bank of Japan has jumped on the bandwagon of blaming its own slowdown on the downturn in emerging markets. Minutes from the BoJ’s September 14-15 meeting see it singling out emerging markets as a reason for a shift in the domestic economy’s performance. In fact, a simple count sees the number of times “emerging” was used in the minutes jump to 34 in September from 16 at the August meeting.
Inflation targeting has “stood the test of time” and the Bank of Canada has no plans to shift away from the practice, Gov. Stephen Poloz said Monday.
Mexico’s central bank on Tuesday said it sold $200 million of $200 million offered in an auction after the peso weakened sharply during the session.
Singapore’s economic performance has worsened since the April gathering. Analysts forecast the nation entered a technical recession in the third quarter, while consumer prices dropped for a 10th month in August, the longest streak of declines since the Asian financial crisis. Analysts predict the currency is on course for its worst year since 1997.
Treasuries advanced for a second day after data showing Chinese imports fell for the 11th straight month bolstered speculation that the Federal Reserve will delay raising interest rates until 2016 in the face of weakening global growth. The probability traders assign the Fed waiting until at least 2016 to raise rates has risen to 63 percent, futures data showed.
“Since our last review, the bulk of our conditions for further accommodation have been met,” Mr. Rajan wrote in his policy statement. He also noted that underlying economic activity remains weak. The RBI’s move is likely to provide a boost for India’s economy, which decelerated in the quarter ended in June.
He said the end result of this steady stream of cheap money is a dangerous unknown. “You don’t know how bad the end of this is going to be. You do know, though, that when you did it a few years ago, it caused a catastrophe. It caused ‘08,” he said.
Spain’s consumer prices fell in September at their fastest pace in six months, driven by a decrease in energy costs that some economists expect could lead to months of falling prices in the eurozone’s fourth-largest economy.
The investment bank also cut its 2015 S&P 500 earnings-per-share forecast to $109 from $114, representing a 3% year-over-year decline in earnings. For 2016, Goldman sees the S&P climbing 5% to 2,100, with earnings per share for the benchmark coming in at $120, down from the previous forecast of $126.
Approximately 62% of Americans have less than $1,000 in their savings accounts and 21% don’t even have a savings account, according to a new survey of more than 5,000 adults conducted this month by Google Consumer Survey for personal finance website GOBankingRates.com.
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