The size of the global bond market has risen to near its historic record just as European policymakers mull a new monetary program that could raise demand for bonds even further.
Worldwide, new bond issues rose $3.96 trillion, according to data compiled by Bloomberg. That number includes corporate, government, and municipal debt, which has swollen just as bond yields have fallen on lower inflation expectations.
With increased, focused government spending and tight fiscal discipline measures in place, the Brazilian economy is finally out of its recession. However, with the gross domestic product (GDP) expanding a meager 0.1% in the third quarter, economic growth is just a financial figure rather than a clear indication of GDP growth.
Plummeting oil prices and European sanctions are causing bank panics and a deepening recession in Russia, despite Putin’s public confidence and pivot towards Turkey and Asia.
The UK’s massive export industry is seeing dicey times, with minor periods of apparent revivals quickly dampened by a pessimistic outlook from foreign and domestic economic bodies. The Confederation of British Industry (CBI) dragged the skeleton out of the cupboard and asserted that the weak global economic outlook is pulling down UK exports, and the situation is likely to persist.
A Wall Street report may have included insider information from a leaker in the Federal Reserve, while cyber criminals may have hacked into investment banks’ confidential databases to get an edge on the market.
New reports about two separate cases of illicit data leaking from inside the Federal Reserve and investment banks is prompting concerns that both Wall Street and its regulators are not doing enough to protect data and punish illegal market manipulation.
Germany’s Bundesbank has again publicly resisted the European Central Bank’s call to expand its monetary stimulus program, as the German bank president dismisses monetary moves as ineffective.
“Calls for a public fiscal stimulus plan in Germany to boost the Eurozone economy are amiss,” Bundesbank president Jens Weidmann said in an economic summit in Germany.
For many, the annual Black Friday chaos commences the official beginning of the season. Retailers throughout the United States begin to enhance their efforts to sell by offering greater discounts and opening earlier to attract more shoppers. Often times, the general consensus seems to be that heavy spending on Black Friday is a sparkling sign for the American economy. However, less reliance upon seasonal discounts for consumerism would indicate a more confident customer, and better economic health overall.
Excessively high oil prices have been a severe problem for many nations throughout the world. This is especially true for the developing countries that are dependent on oil to continue thriving. Some exporters have argued, reasonably, that high prices maximize their earnings from a finite resource. For example, in corrupt and mismanaged Venezuela, gas and oil amount to approximately 98% of total exports and 40% of GDP.
Oil futures fell over 4% in London as OPEC announced it would leave its oil output target unchanged, leading further momentum to the bear market in energy commodities.
OPEC announced Thursday that it would keep steady its output ceiling of 30 million barrels a day, according to Ali Al-Naimi, Saudi Arabia’s oil minister. Brent crude futures fell to less than $75 per barrel, the lowest point since 2010, while the WTI crude fell to $71.34 per barrel.
The recent collapse of the Espirito Santo banking Business Empire in Portugal has had a significant impact on the country. However, the Prime Minister, Pedro Passos Coelho, announced that it would not prevent the economy from growing 1.5% in 2015, as forecast. However, although the country may still meet its economic goals, it is unlikely to expand any further. Moreover, there is nothing special about 1.5%. Those low standards seem to be fine for California, New York, and Oregon.
