The world’s major retailers, particularly Wal-Mart and Tesco, keep a very close finger on the global economic pulse. They spotted looming recession 18 months ago – long before it became more widely apparent this year. Yesterday, Wal-Mart’s UK head went further, referring to “the dawning of the age of austerity”. He added that “this won’t […]
Chemicals and the Economy
Dow cuts jobs, sets out future focus
Yesterday, Dow announced its new structure post the K-Dow JV and the planned acquisition of Rohm & Haas. This covered two main elements: • Implementation of November’s cost reduction announcement • Dow’s new organisation (the chart above) The cost reductions were severe, with a headline 11% of staff facing redundancy. 20 plants in “high-cost areas” […]
“Markets braced for big European rate cuts”
Sometimes a headline says it all. Today’s in the Financial Times, “Markets braced for big European rate cuts”, showed just how far we have travelled since the first signs of global financial crisis in August last year. Then, a co-ordinated round of interest rate cuts would have sent stock markets soaring. Now, they are taken […]
Dow Jones’ 1st year fall worse than 1929
The chart presents a sobering view of recent stock market performance. It shows (courtesy of chartoftheday.com) the Dow’s performance in the first year of all bear markets since 1900. Since its 2007 peak, the Dow has fallen more than in any other bear market, even more than in 1929.
Saudi Arabia calls for $75/bbl oil
The King of Saudi Arabia is the most important person in the oil industry. He controls the largest oil reserves, and is the largest single producer. Previous Kings have let their Oil Ministers do the talking at OPEC meetings, and to the world’s press. But King Abdullah, who succeeded in 2005, has recently become more […]
Japan’s industrial output collapses as exports dive
Japan has an ageing population. Since 1990, it has relied on exports to boost its economy. Yesterday, official figures showed industrial production is now being badly affected by the global recession. Output fell 3.1% in October, and a 6.4% decline is expected in November. Observers forecast the September – December period could see an “unprecedented” […]
Hope for recovery, plan for downturn
Surprisingly, our 7th European conference this week in Cologne (co-organised with ICIS), was one of our most successful. Delegate numbers were down, as companies cut travel budgets. But those attending said they had gained much more, than if they had stayed in the office. For a start, there was the opportunity to share experiences, and […]
Financial Times recognises the blog
The Queen of England recently asked “Why did nobody see the financial crisis coming?” The Financial Times took the view that “Some did, Ma’am. Some did.” It then initiated a search for these people. Today’s Financial Times now recognises some of those who correctly warned that financial crisis was close. I am sure readers will […]
“An economic crisis of historic proportions”
President-elect Obama has become the latest world leader to “get it”, as his wife Michelle once remarked. For far long, politicians seemed to believe their platitudes about the “underlying strength” of their national economies. This meant their proposed remedies were reactive, and usually unworkable. More recently, the blog has also worried that the USA faced […]
World Bank warns on China growth
The World Bank has cut its growth forecast for China’s GDP to just 7.5% next year. Only 3 months ago, it was expecting 9.2%. And the Bank warns that the economy is dependent on “higher public spending” for more than half its forecast growth next year. Chemical companies will also be alarmed by the Bank’s […]
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