Tag Archives | credit crunch

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EPCA attendees worry about China slowdown

China was understandably a key item on most people’s minds at this week’s annual EPCA (European Petrochemical Association) meeting in Berlin. It has been the motor of global chemical demand growth over the past 3 years. The blog’s discussions identified a number of signs that this support may be disappearing: • Many companies worry about […]

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US housing markets could weaken further

US housing was the prime cause of the current financial crisis. US banks spent most of the 2000-7 period lending at low ‘teaser’ rates to borrowers who had no prospect of repaying the loan. And by syndicating the loans to gullible European banks, they ensured that losses were shared equally, when credit standards finally began […]

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“Impatience can ruin a whole life”

Anyone running a chemical company knows that the benefits of certain key decisions can take years to develop. Many companies had to support their nascent pharma businesses for 20 years, before steady profits began to flow. Whilst major complexes can easily take 10 years from inception to completion. Yet in recent years, investors have become […]

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5 tips for surviving a period of deflation

The blog has been revisiting the Bank of England’s 2008 analysis of the likely impact of the financial Crisis. This reviewed 33 banking crises between 1977-2002 and found that: • The average length of each crisis was 4.3 years • The median loss of GDP was 7.1% • Major crises (such as today’s) caused GDP […]

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The blog’s 3rd birthday

The blog continues to go from strength to strength. It is now read in 130 countries and 3680 cities, up from 111 countries and 2088 cities a year ago. Its readership is truly global, with the Top 10 countries including Benelux, China, France, Germany, India, Italy, Singapore, Turkey, UK and USA. It has also expanded […]

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“The name is Bond, Japanese Government Bond”

The blog, an old-fashioned romantic, has always thought that flowers were the way to woo a lady. But apparently no longer in Japan, according to government adverts. Bloomberg reports the Ministry of Finance is advertising Japanese Government Bonds (JGBs) under the slogan “Men who hold JGBs are popular with women!!”. The campaign, developed by Japan’s […]

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US job losses hold back consumer spending

SOURCE: WWW.CHARTOFTHEDAY.COMUS consumers were responsible for 16% of total world GDP in 2008. But their spending is taking a battering from the combination of high unemployment and high oil prices. Both are reducing end-user demand for chemical products. New government estimates suggest US employment has fallen by 8.4m jobs since the downturn started in December […]

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UK to tax bankers’ bonuses

UK Finance Minister Alistair Darling is widely reported today as being about to announce a ‘super-tax’ on bonuses paid to bankers working in the UK. The government’s argument, notes the BBC’s Robert Peston, is that “Investment banks are making exceptional profits, as a result of the intervention of government and the Bank of England to […]

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Chemical production stabilises as destocking ends

The excellent weekly report from the American Chemistry Council (ACC) has a number of interesting insights: • As the chart shows, global chemical production seems to have bottomed. All regions are, however, now showing a decline versus 2008. • Separately, the ACC has updated its valuable survey of the state of inventories down the US […]

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Germany, China, struggle as exports slump

Germany and China have benefited massively from the growth in world trade since 1980. As the Wall Street Journal chart shows, 47% of Germany’s GDP comes from exports. And China has a 37% dependence. US exports are just 13% of GDP, so it is more self-sufficient. Both countries have punched above their weight in terms […]

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