Tag Archives | deflation

European Petrochemicals: Making Money Despite Deflation

By John Richardson

THE European petrochemicals industry has done staggeringly well since 2008 thanks to operating rate discipline, skillful inventory management and feedstock flexibility – for example, the INEOS and SABIC initiatives to import low cost ethane from the US.…

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Coming To Terms With Global Deflation

By John Richardson

YOU used to be able to take, say, a World Bank report on GDP growth forecasts, plug that into your spread sheet, look at low per capita consumption of chemicals and polymers in the developing world and …

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China Drives Down Yuan To Protect Jobs

By John Richardson

WE first warned in December 2011 that as China’s economic reforms accelerated, Yuan depreciation was a strong possibility.

 And then in May of last year, we picked up the theme again by again suggesting that as growth …

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Central Banks Chase The Inflation Illusion

By John Richardson

IT was Milton Friedman who famously said “inflation is always and everywhere a monetary problem”.

This widely accepted economic wisdom is based on the following premise: Excessive expansion of the money supply is inherently inflationary.

And so …

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Regional Trading Blocs: Globalisation In Reverse

By John Richardson

HAS anyone out there considered the possibility that we could end up with a series of regional trading blocs as globalisation goes into rapid reverse?

Or have chemicals companies instead come up with one-dimensional outlooks that assume …

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Chemicals Companies Need To Prepare For Deflation in 2014

By John Richardson

IF the US Fed’s polices are working why is AP Moller Mearsk – the shipping company which is widely seen as a proxy for global trade – cutting costs and reducing capacity?

Probably because as Henny Sender …

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More evidence of China’s export rebound

Source of picture: Businesweek

 

More evidence is emerging of the big rebound in Chinese exports resulting from government subsidies, including a Yuan now pegged to the dollar, soft and plentiful bank loans and export-tax rebates.

More than 9,000 quality …

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Is China repeating the mistakes of the US?

My current favourite blogger is Michael Pettis, professor at Peking University’s Guanghua School of Management, who, in his latest post, makes a very worrying point below.

As an aside, and without wanting to take the 1930s analogy too far, this …

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I will wait for this Lego truck to hit S$100

Yes, that’s my target for the truck above, which is actually for 4-11 year olds and my son is only 22 months – but what the hell, don’t we all deserve a second or, in my case probably a tenth …

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