At $80 or below, Brent Crude may be low enough for us to set up longer term hedges, if available. This should be the realm of oil refiners, but most of them do not hedge, and they are government owned etc. In a purely competitive market, they should have been hedging and reducing the cost of fuels if the hedge worked and so on, but this is not a proper market. In fact, they end up buying dollars directly from the RBI whenever RBI feels that their buying will distort the actual market.
This needs a broader approach because India imports a lot of crude. Just oil imports are more than 30% of India’s overall imports (last year: $160 billion out of the total imports of $480 bn). That means it should be of interest to reduce the overall impact of oil imports. However, the market may not really allow for long term hedges (what if the 2 year or 3 year futures are only available for a much higher price?), which means the question is moot.>> Read More
China’s National Bureau of Statistics said Tuesday the country’s gross domestic product rose 7.3% on the year for three months through September, the slowest growth since the first quarter of 2009.
Inflation-adjusted economic growth slowed, quarter-on-quarter, for the time since the January-March period of 2014, and matched the average market estimate in a survey by The Nikkei and Nikkei Quick News
Investment and production were stagnant, largely due to a slowdown in home sales throughout the country. The slowing Chinese economy may, in turn, hamper global growth.>> Read More
President Barack Obama made a rare appearance on the campaign trail on Sunday with a rally to support the Democratic candidate for governor in Maryland, but early departures of crowd members while he spoke underscored his continuing unpopularity.
With approval levels hovering around record lows, Obama has spent most of his campaign-related efforts this year raising money for struggling Democrats, who risk losing control of the U.S. Senate in the Nov. 4 midterm election.
Barack Obama and the head of the CDC need to quit saying that we know exactly how Ebola spreads. Because the truth is that there is much about this virus that we simply do not know. For example, a top Ebola scientist that is working in the heart of the outbreak in Liberia says that this version of Ebola looks like it could be “a very different bug” from past versions. Other leading scientists are echoing his concerns. And yet Barack Obama and Thomas Frieden continue to publicly proclaim that we know precisely how this virus behaves. Not only is that bad science, but it could also potentially result in the unnecessary deaths of a very large number of people. For example, Obama has refused to implement an Ebola travel ban because he is greatly underestimating the seriousness of this virus. This decision could turn out to be incredibly costly. If what you will read about below is true, we could be dealing with some sort of “super Ebola” that nobody has ever seen before.
Peter Jahrling of the National Institute of Allergy and Infectious Disease is on the front lines fighting this disease in Liberia. He is one of the top authorities in the world on Ebola, and what his team has been seeing under the microscope is incredibly sobering…>> Read More
The European Central Bank has started to buy covered bonds, launching its latest attempt to stave off a vicious bout of economic stagnation in the currency area.
A spokesperson for the ECB confirmed that the central bank had begun purchasing the assets on Monday,
The purchases are the first in a bond-buying programme which is expected to see the ECB place billions of euros of covered bonds and asset-backed securities on its balance sheet over the next two years in an attempt to revive lending and growth across the region.>> Read More