Cuts of meat are seen for sale at a butcher shop in Manhattan, New York City, U.S., August 8, 2022. REUTERS/Andrew Kelly CHICAGO – U.S. consumers grappling with soaring inflation face more pain from high beef prices as ranchers are reducing their cattle herds due to drought and lofty feed costs, a decision that will tighten livestock supplies for years, economists said. The decline in cattle numbers, combined with stiff costs for other production expenses, illustrate why a recent fall in grain prices to levels not seen since Russia’s invasion of major corn and wheat exporter Ukraine may not immediately translate into lower food prices at the grocery store. Feed is the largest cost component of raising a cow for beef, so lower grain prices often help to reduce meat prices. But meat companies like Tyson Foods Inc, which reported weaker-than-expected earnings on Monday, must pay top dollar for animals when there are fewer to slaughter. Processors are also paying more for labor, … [Read more...] about Shrinking U.S. cattle herd signals more pain from high beef prices
Wheat exports by country
Share to Twitter Share to Linkedin FILE: Bob Dudley, chief executive officer of BP Plc, speaks during the World Gas Conference, in ... [+] Paris, France, on Tuesday, June 2, 2015. Dudley will retire early next year, a much-anticipated step after more than nine years at the helm of the oil and gas giant. He’s succeeded by Bernard Looney, the head of upstream who has led BP into new countries and championed the latest technology. Photographer: Christophe Morin/Bloomberg © 2019 Bloomberg Finance LP “ Watching our estimates for the Marcellus rise from 2 trillion, to 84 trillion, to 97 trillion in under 20 years demonstrates the effects American ingenuity and new technology can have ,” USGS director Jim Reilly , October 3, 2019 Ever since the U.S. shale revolution took flight in 2008, it's been a consistent theme: not just rising natural gas production but also rising proven natural gas reserves. In fact, over the past decade, the U.S. … [Read more...] about U.S. Natural Gas Reserves Continue To Soar
Share to Twitter Share to Linkedin Both oil and gas exported from Russia bring in significant revenue that can be used to support the Russian war in Ukraine. But the export revenue from oil sales is much greate r than export revenue from gas sales. If the West stops buying oil this really hurts Russia – more than if the West stopped buying gas. Back in May, the EU agreed to ban all Russian oil imports by the end of 2022, at least those that are delivered by sea. That was a good move. Russia threatens to cut gas supplies to the European Union. Russia has realized that cutting natural gas doesn’t affect their export revenue (like oil does) but it affects the economies of EU countries a lot more. Russia supplied the EU with 40% of its gas last year , with Germany, Italy, and Netherlands the top three importers in actual volumes of gas. Germany had imported more than 50% of its gas from Russia via the Nord Stream 1 pipeline. By the end of June, … [Read more...] about Russia Threatens, EU Reduces, US Industry Helps To Untangle The Natural Gas War In Europe.
Representative Image In the August Monetary Policy Committee (MPC) meeting, RBI Governor Shaktikanta Das said that the Indian Rupee (INR) has fared “much better than several reserve currencies as well as many of its EME and Asian peers”. The Governor also added that the INR has depreciated “more on account of the appreciation of US dollar rather than weakness in macroeconomic fundamentals of the Indian economy”. Of late, there has been a lot of discussion around the INR. Towards the end of July, the rupee touched 80 against a US dollar , leading to discussions that it is a sign of a weakening Indian economy. But, is this the case? First, exchange rate increasing or decreasing against a foreign currency is not a sign of weakness or strength. In fact depreciation of the currency is often cited as a positive development for the domestic economy. If a currency depreciates against a foreign currency, the exports become cheaper with respect to the other country, and imports … [Read more...] about USD vs INR | India’s macroeconomic fundamentals are strong
The country’s trade deficit widened to $29.79 billion at the end of the first half of the year from $17.95 billion last year, according to the Philippine Statistics Authority, with the gap hitting another monthly high in June. National Statistician Dennis Mapa on Tuesday confirmed that the June trade deficit amounting to $5.84 billion was the biggest monthly gap on record. Last June, imports climbed 26 percent year-on-year to $12.49 billion, while exports growth slowed to just 1 percent as sales of Philippine-made goods overseas reached $6.64 billion. The country’s chief economist, however, is not worried about the yawning trade deficit, as long as the growth in imports supported domestic investments and infrastructure. President Marcos’ economic managers had projected 18-percent merchandise imports growth exceeding a 7-percent increase in exports this year. The wide trade gap had resulted in a current account deficit as the country had to shell out more dollars to pay for … [Read more...] about H1 trade deficit widens to $29.79B
- A + A KUALA LUMPUR (Aug 9): The Malaysian Plastics Manufacturers Association (MPMA) call on the government to expeditiously ratify the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to enable the plastics industry in Malaysia to reap the benefits of the agreement. President Datuk Lim Kok Boon said MPMA fully supports the ratification of the CPTPP, as manufacturers of plastic products are expected to gain from the elimination of tariffs, as well as gain new market access. “I anticipate that CPTPP will open market access to Canada, Mexico and Peru for plastics exporters. All three countries are net importers of plastic products. “The tariff for plastic products will be eliminated immediately from a maximum of 6.5% for Canada upon Malaysia’s ratification, while the 15% tariff for Mexico and 9% tariff for Peru will be reduced gradually over a period of 10 years,” he said in a statement on Tuesday (Aug 9). He said demand for plastic … [Read more...] about MPMA calls on govt to expedite the ratification of CPTPP
Share to Twitter Share to Linkedin Democratic presidential candidate Sen. Elizabeth Warren, D-Mass., waves as she arrives to a campaign ... [+] event, Monday, Sept. 2, 2019, in Hampton Falls, N.H. This week Senator Warren promised to immediately ban hydraulic fracturing if elected President. (AP Photo/Elise Amendola) ASSOCIATED PRESS It's primary season, which generally means Democratic candidates for President are trying to see who can swing farthest Left. This is especially true when it comes to punishing the oil and gas industry that supplies most of the country's energy. The latest test of party purity involves promises to ban fracking if elected. Senator Elizabeth Warren is but one of many to make such a promise, tweeting : Senator Warren promises to ban fracking. Robert Rapier Senator Bernie Sanders and Senator Kamala Harris have both made similar promises. But these are simply not realistic promises. What … [Read more...] about Why A Ban On Fracking Will Never Happen
Representative image The Reserve Bank of India announced measures to ease forex inflows. This explainer helps us understand the measures and objectives behind them. What are forex inflows and why are they needed? One of the major factors of a country’s growth is higher savings. Savings are channelised into investments, which help drive the growth of an economy. If the domestic savings rate is low or the investment rate is higher than the savings rate, foreign exchange savings can be used to bridge the gap. Foreign exchange savings are nothing but net inflows of foreign capital. The Indian economy was liberalised in 1991 and efforts were made to attract forex inflows. There are various categories of forex such as Foreign Direct Investment (FDI), Foreign Portfolio Investment (FPI), NRI deposits, and External Commercial Borrowings (ECB). The government and the Reserve Bank of India welcome equity flows such as FDI and FPI, but are cautious about debt inflows because heavy … [Read more...] about MC Explains | Will steps to liberalise forex inflows help the rupee?
Representative image Impostor syndrome seems to be more common than actually thought, though at a collective level. People may often feel that the groups they are affiliated with may be underperforming in comparison to other groups. Although this self-critical approach may work in certain cases, it may also overlook the positives, and decrease the morale of those affiliated with the group. Many in India seem to have a collective/national-level impostor syndrome. While the Indian economy is much better placed than its peers in the emerging markets, and other economies, the government is being criticised on the economic front. The criticism comes when the fundamentals of the Indian economy are robust, despite the exogenous shocks caused by the COVID-19 pandemic, supply chain disruptions, monetary policy tightening by the US Federal Reserve, the Ukraine-Russia conflict, and inflated crude oil prices. India's macroeconomic health remains robust despite external pressures, and ongoing … [Read more...] about Bibek Debroy writes: India’s economy is better placed than its peers, other economies around the world
According to Mustapa, the number of unemployed decreased to 630,600 in June, from 637,700 people the previous month. (Photo by Zahid Izzani Mohd Said/The Edge) - A + A KUALA LUMPUR (Aug 9): The unemployment rate continued to show a downward trend, recording 3.8% in June — the lowest since the Covid-19 pandemic hit the country — said Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed. He said the number of unemployed decreased to 630,600 in June, from 637,700 people the previous month. Citing the June 2022 Malaysian Labour Force Statistics published by the Department of Statistics Malaysia on Tuesday (Aug 9), Mustapa said the country had reached full employment since April, in terms of the unemployment rate being below 4% as defined by the Organisation for Economic Co-operation and Development. Therefore, he said the position of the labour force was more stable following an increase in the number of workers of 0.2% to 16.57 million … [Read more...] about Malaysia’s unemployment rate down to 3.8% in June, lowest since Covid-19 pandemic struck