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Friday, 20 July 04:46 (GMT -05:00)



Business And Politics News

The Era of Cheap Money from Central Banks is Over


According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.
 
The thing is, the global economy has been growing faster than ever since 2011. This is expected to make the central banks raise the key interest rates by at least 1%, which is something we haven’t seen since 2006. That said, in 2018 we are going to see true monetary toughening, Citigroup experts are convinced.
 
Citigroup expects the Federal Reserve to raise the rates at least 3 times throughout 2018. All in all, they expect the Fed’s rates to be increased by at least 2 percent points, which is something we haven’t seen since 2008. At the same time, the central banks of Great Britain, Australia, New Zealand, Sweden , and Norway are expected to rise their rates by at least 1 percent point. All in all, the central banks from developed economics are expected to raise the rates by 0.4-1 percent point on average.

JPMorgan goes beyond those predictions. They expect the Fed's rates to be raised at least 4 times in 2018 – 1,2 percent points in total. The last time the rates grew that fast in 2006 before the global crisis.

At the same time, the name a few price bubbles that are going to hit the global financial market in 2018. One of them is Bitcoin, the world’s first and most expensive cryptocurrency that has already grown by 1800% this year.

Other experts say that it's the U.S. stock market that’s going to be the reason for the expected interest rate hikes in 2018. The thing is, the market cap has increased by 1600% over the last 9 years. Also, there is a group of experts who put the blame on the credit boom in China while the Chinese public debt is 3 times as high as the Chinese GDP.
 

 

Since the 2008-2009 financial crisis, all the central banks altogether have cut their interest rates more than 700 times and has pumped into the global economy over 16 trillion dollars.

 

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Fitch Downgrades Economic Forecast for Russian Economy

An international rating agency named Fitch has downgraded the economic forecast for the Russian Federation. In particular, the experts working for the international agency assume that the Russian economy will grow by 1,8% this year. The previous forecast used to be 2% in 2018. The economic forecast for the next year has dropped from 2% down to 1,9%. In 2020, the Russian economy is believed to gain only 1,5%. The long term forecast is also bearish – 1,2% a year on average.

Publication date: 28 June 12:51 PM

When it comes to trade, EU is worse than China, Trump says

Not so long ago, President Trump said that the European Union is worse than China, when it comes to trade relations. This is reported by Axios with reference t anonymous sources. They say this comparison was made during President Trump’s conversation with French President Emmanuel Marcon back in April 2018. Back then, the 2 leaders were discussing the Chinese issue. Macron urged Trump to unite forces with Europe to resist China since China is a trade problem for everyone. 
 
Publication date: 27 June 11:07 AM

Trump Turned G7 Into G6+1

The British media are criticizing Donald Trump's stance and behavior during the recent G7 summit in Quebec, Canada. 

Publication date: 13 June 12:02 PM

G7 Is Ready to Impose New Sanctions on Russia

In the final communique of the recent G7 summit in Quebec, Canada, there is warning for Russia. In particular the G7 warns Moscow that they are ready to impose even more sanctions on Russia in case of further aggression. 

Publication date: 12 June 11:44 AM

George Soros: New Global Crisis Is Coming

While analyzing the current geopolitical situation in the global arena, many experts warn us about serious threats. For example, famous billionaire and financier George Soros predicts another global crisis in the near future. Even though his predictions are controversial at best, many representatives of the international community take his words for granted.

Publication date: 01 June 12:24 PM

Donald Trump Is Not going to Meet with Kim Jong Un

U.S. President Donald Trump is reported to have been canceled his meeting with North Korean leader Kim Jong Un. This is confirmed by the corresponding official press release published in the White House’s official account.

Publication date: 24 May 11:49 AM

How to become a European bank co-owner?

Do you want to get absolutely legitimate access to the EU’s banking system by becoming a co-owner of a European bank to have personal and corporate accounts in your own financial institution? It’s like having a VIP card by VISA or MasterCard with huge discounts worldwide…

Publication date: 10 April 08:06 AM

Goldman Sachs Analysts Have Found Global Economic Slowdown

At the point, most representatives of the international expert community are pretty sure that the global economy has been growing confidently for some time. However, Goldman Sachs analysts claim that the global economy is starting to slow down.

 

In February 2018, 7 out of 10 base components of Goldman Sachs' Global Leading Indicator (GLI) dropped a bit. The bullish momentum started weakening and slowed down from 0,249% down to 0,234%. These are the weakest figures since March 2016.

Publication date: 30 March 01:25 AM

U.S. Fed Denies 4 Interest Rate Hikes This Year?

According to Finanz, the accelerated economic growth in the United States may force the federal Reserve to change their mind about raising interest rates 4 times this year.
 
Publication date: 29 March 11:19 AM

Putin Challenges USA

Vladimir Putin has recently presented new Russian weapons. Western experts have been busy discussing them ever since. According to several observers, this move literally means that Putin has challenged Washington.

Publication date: 29 March 10:06 AM