World
Oil prices tumble as Saudi Arabia rules out production cuts
New York : Oil prices decreased after Saudi Arabia Oil Minister Ali Al-Naimi said there will not be any production cuts in the country.
 
The West Texas Intermediate for April delivery moved down $1.52 dollars to settle at $31.87 a barrel on the New York Mercantile Exchange, while Brent crude for April delivery declined $1.42 to close at $33.27 a barrel on the London ICE Futures Exchange on Tuesday, Xinhua reported.
 
"We are not banking on cuts because there is less trust that countries are going to deliver even if they promise," Al-Naimi said on Tuesday.
 
He also said it is not clear when the current price rout will end, but the market will eventually rebalance because high-cost producers will have to "lower costs, borrow or liquidate" to cope with the slump in oil prices.
 
Big oil exporters including Saudi Arabia and Russia have proposed to freeze output at January levels only if other producers join them.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Negative interest rate comes into force in Japan

The measure, announced on January 29 by the BoJ, applies a negative interest rate of minus 0.1% to deposits that Japanese financial institutions place at the BoJ

 

The negative interest rate recently approved by the Bank of Japan (BoJ) for certain bank deposits, came into force on Tuesday, a historic measure intended to boost the growth of the world's third largest economy.
 
It is the first time that the benchmark rate falls into negative territory in Japan, after data on Monday showed a contraction in the gross domestic product (GDP) in the October-December quarter, showing the effects of a global deceleration on the Japanese economy, EFE news reported.
 
The measure, announced on January 29 by the BoJ, applies a negative interest rate of minus 0.1% to deposits that Japanese financial institutions place at the BoJ.
 
The decision, which penalises financial institutions for storing excess funds, aims to stimulate investment and credit and is meant to force a reduction of interest rates applied by banks -something which has already begun to translate into rebates for some deposits and mortgage rates.
 
Initially, the measure would affect roughly 10 trillion yen (about $88 billion) in bank funds, about 4 percent of all deposits at the BoJ.
 
Shortly after the announcement, the yield on Japanese 10-year bonds briefly slipped into negative territory for the first time in history, showing the first effects of the BoJ measures on banks which have opted for Japanese debt as a safe haven to mobilise their assets.

 

 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article

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Germany ends 2015 with weak economy performance
Berlin : German industrial output and exports declined in December 2015, official data showed on Tuesday, indicating a shaky growth of Europe's biggest economy.
 
Adjusted for seasonal swings and inflation effects, production in German industrial sector fell by 1.2 percent from the previous month in December 2015, Xinhua quoted German federal statistics office Destatis as saying.
 
It followed a monthly decrease of 0.1 percent in November. In the final quarter of 2015, the factory output dropped by 0.8 percent.
 
"The industrial production went through a dry spell at the end of 2015," said German economy ministry in a statement.
 
Another release from the statistics office also said both German exports and imports declined by 1.6 percent in December, narrowing adjusted-net exports to 19.4 billion euros (about $21.8 billion).
 
Foreign trade was Germany's traditional driving engine but remained subdued in recent years due to weak global growth.
 
Economists at Berlin-based German Institute for Economic Research expected that net exports would no longer contribute the growth over the next two years.
 
"This morning's data were a painful reminder that not all is hunky dory in the Eurozone's largest economy," said ING-DiBa Bank's chief economist Carsten Brzeski.
 
"In fact, the German 'Wirtschaftswunder' has only some domestic magic left," he said, referring to dynamic private consumption boosted by strong labour market, low inflation, low interest rates and increasing wages.
 
German consumers' confidence stood at a high level despite risks of terror attacks and refugee crisis. In 2015, retail sector in the country logged the strongest sales increase in over 10 years.
 
Destatis was scheduled to release data of growth in the fourth quarter of 2015 on Friday. Based on provisionary calculations, it reported that the economic growth over the whole year stood at 1.7 percent.
 
Economists expected that gross domestic product of Germany would increase by 0.3 percent during the last three months of 2015, followed by a growth of 0.4 percent in the first quarter of 2016.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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