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  • Bank of England warns on inflation

    Andrew Sentance of the Bank of England has issued a very clear analysis of current oil and commodity price movements. It rejects the view that these have been caused by speculators. Instead it points to increasing demand, and lack of supply, as the principal causes of today's higher prices. The slide...
    Posted to ICIS Blogs (Weblog) by Anonymous on 07-17-2008
  • The 'difficult task of damage control'

    The central bankers' bank (the Bank for International Settlements) is not very impressed with its members' efforts over the past year. Readers may remember that its Report last year explicitly warned of the problems that were about to occur in world financial markets. This year's Report expresses...
    Posted to ICIS Blogs (Weblog) by Anonymous on 07-08-2008
  • The blog's first birthday

    Its now a year since the blog started. Since then, 213 postings have appeared. It is now read in 72 countries and 620 cities (shown above). Most encouragingly, readership continues to steadily increase. Since January, it has risen a further 301%. The blog's aim is to identify 'the influences...
    Posted to ICIS Blogs (Weblog) by Anonymous on 07-05-2008
  • Sinopec receives $1bn subsidy in April

    Sinopec is now losing 3000 yuan ($425) on every tonne of oil product sold, due to China's price freeze, according to Sinopec spokesman Chen Ge yesterday . And this is on top of official government subsidies paid to Sinopec, which rocketed to $1bn in April. This was more that the entire subsidy paid...
    Posted to ICIS Blogs (Weblog) by Anonymous on 05-27-2008
  • China exports inflation (2)

    I noted back in February that China is no longer exporting price deflation, and is instead causing global prices for commodities and manufactured goods to rise. A reader has now kindly sent me an interesting report from Credit Suisse, commenting on the potential inflationary impact of new labour laws...
    Posted to ICIS Blogs (Weblog) by Anonymous on 05-06-2008
  • Inflation worries increase in China, USA

    China announced yesterday that inflation had soared again last month, reaching 8.7%, versus the government target of 4.8%. Part of the increase is clearly due to the effects of recent major storms . But with the US Fed likely to cut rates soon, China remains in a difficult position. If it increases interest...
    Posted to ICIS Blogs (Weblog) by Anonymous on 03-11-2008
  • Traders sell $, buy oil

    ‘ 'A vicious circle now seems to be in place again, where a lower dollar inspires raw material prices to rally, which in turn increases worries about inflation’. This was how strategists at BNP Paribas summed up the US Fed Chairman’s two days of testimony to Congress last week. For the last 20 years...
    Posted to ICIS Blogs (Weblog) by Anonymous on 03-02-2008
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