The government is working with advisers on a review of capital spending plans and may delay or shrink some infrastructure projects to save money, the people said, asking not to be identified as the information is private. The government is in the early stages of the review and could look at cutting investment spending, estimated to be about 382 billion riyals ($102 billion) this year, by about 10 percent or more, the people said.
Mining companies are confronting a commodities slump that’s hurting profits and shares amid concern that China’s deepening slowdown will undermine demand and exacerbate supply gluts from crude oil to iron ore. Chinese steel production declined 1.3 percent in the first half for this year, triggered largely by a slowing construction sector, BHP said.
With prices at about $1,100, production probably will plunge 18 percent by the end of the decade, Metals Focus estimates. That’s because the industry, on average, needs about $1,200 to break even when all costs are considered, according to James Sutton, a portfolio manager at JPMorgan Chase & Co.’s $2 billion Natural Resources Fund.
Samson will join at least 10 companies in the sector to file for Chapter 11 this year. The oil plunge has already sent Hercules Offshore Inc., Sabine Oil & Gas Corp. and Quicksilver Resources Inc. to bankruptcy court.
The Treasury Department has had to rely on so-called “extraordinary measures” to avoid default. Congress last raised the debt ceiling in February 2014.
Ukraine and a group of its largest creditors are close to agreeing a restructuring deal that will include a 20-percent writedown on the principal of about $19 billion of debt, the Wall Street Journal (WSJ) quoted sources as saying on Monday.
However, State-Owned Enterprises Minister Rini Soemarno was reported to have told state companies to buy back part of their shares to prop up falling prices. The Finance Ministry also announced earlier in the day its plan to buy back treasury notes in an effort to calm investors amid the current financial turmoil.
New ship orders have plunged as trade has slowed globally, with China’s shipbuilders alone reporting a nearly 70% drop in orders during the first seven months of the year compared with the year-earlier period
Mr. Ortiz estimated that all major oil exporting countries had lost a total of $1 trillion in oil sales because of the price decline over the last year.
China has halted intervention in the stock market so far this week as policymakers debate the merits of an unprecedented government campaign to prop up share prices, according to people familiar with the situation.
Household credit in South Korea increased at the fastest clip ever in the second quarter, data showed Tuesday, further adding to concerns that borrowers will take a blow from a much-awaited rate hike in the United States.
Japan’s central bank now holds over 300 trillion yen ($2.44 trillion) in Japanese government bonds as a result of long-term monetary easing measures — a development that is raising fears of market volatility.
But as oil hits new six-year lows, most of those surpluses have vanished. A Reuters poll last week found economists expect all GCC states to post fiscal deficits this year, and half of them to post current account deficits.
The country’s foreign-exchange reserves dropped 19 per cent this year to US$94.5 billion as of Aug 14, the least since 2010. The cost to insure government debt has climbed this year above that for Thailand and the Philippines and reached the highest since 2011, CMA prices show.
A close adviser to Prime Minister Shinzo Abe said Tuesday that the Bank of Japan should consider additional monetary easing if the yen rises sharply, threatening the “Abenomics” growth plan.
Central bankers across emerging markets are being forced into action to stem falls in their currencies, especially after China allowed its yuan to weaken to four-year lows. A JPMorgan index tracking 22 emerging market currencies has hit successive record lows and losses have spiralled this week, forcing currencies to fresh multi-year and record lows,
The country’s central bank said in a statement on Tuesday that it cut interest rates by one-quarter of a percentage point and reduced bank-reserve requirements by one-half of a percentage point. The reserve-rate cut effectively adds 678 billion yuan (about $105.7 billion) to the Chinese economy.
Gold & Silver
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