BUSINESS Saturday 11 March 2017 PAGE | 18 BRENT PAGE | 19 10,467.23 7,343.08 20,885.84 $48.82 US economy adds +105.74 PTS +28.12 PTS +27.65 PTS -0.46 Volkswagen 235,000 jobs in 1.02% 0.38% 0.13% looks to team up February QE DOW DOW with Tata Dow & Brent before going to press Pacific Alliance Meeting Pound on Oil steadies but worst run glut worries versus Euro THE pound headed for its long- persist est losing streak against the euro since August amid evi- dence that the UK’s decision Crude inventories Russia agreed last year to cut to leave the European Union is output by around 1.8 million starting to hit economic data Market confidence barrels per day in the first half just as European policy mak- faltered after news of 2017, but so far the move has ers strike a more positive note of another big rise in had little impact on inventory on the region’s own prospects. US crude inventories. levels. Sterling depreciated for a The supply-demand "Steep price falls in the last sixth day versus the euro, and gap is still a concern. two days amid building US also headed for a second inventories show that the mar- week of declines against the Crude oil inventories ket remains concerned about dollar. the supply-demand balance," Reports yesterday in the United States NAB Group Economist Phin Zie- showed manufacturing, swelled by 8.2mb bell said. industrial and construction last week to a record Crude oil inventories in the output all shrank in January FROM LEFT: Finance Ministers Mauricio Cardenas of Colombia, Rodrigo Valdes of Chile, 528.4mb. United States, the world's top from the previous month, oil consumer, swelled by 8.2 Jose Antonio Meade of Mexico and Alfredo Thorne of Peru shake hands during a meeting adding to evidence that the million barrels last week to a of the "Alianza del Pacifico" (Pacific Alliance) in Santiago, Chile, yesterday. trend of robust data follow- London record 528.4 million barrels. ing the Brexit vote may be Reuters US oil and gas drilling has coming to an end. The euro is also picked up, with producers also strengthening after Euro- il prices steadied planning to expand crude pro- pean Central Bank President yesterday after duction in North Dakota, Mario Draghi gave a more dropping to their Oklahoma and other shale G20 plan to stave off debt crises stalls upbeat outlook for the lowest in more regions, while output has region’s economy at a press than three months, jumped in the Permian, Amer- London International Monetary Fund economies issue first to make conference yesterday. Opressured by heavy over- ica's largest oilfield. Reuters report into such debt, which investors more comfortable with The UK’s recent resilience supply despite Opec-led That has undermined bull- could offer poorer economies the bonds. But this has hit the was mainly due to the rise in production cuts. ish sentiment and cast doubt on lobal efforts to create a some respite if they fell on hard buffers for the moment because consumer debt, “which is Brent crude oil was down how long Opec will be willing market for growth-linked times and stave off the kind of no country wants to take the risk unsustainable,” said Erik 10 cents at $52.09 a barrel by to cut output if prices keep Gbonds that could help defaults seen recently in the of being the first to issue the Weisman, chief economist 1445 GMT, after falling 1.7 per- falling. avert debt crises have stalled likes of Puerto Rico and Ukraine. bonds, according to the sources. and fixed-income portfolio cent on Thursday and 5 percent Senior Saudi officials told because none of the wealthy The G20's technical staff "The technical discussions manager at MFS Investment the day before in its biggest per- US oil firms in a closed-door economies backing the drive are were briefed earlier this year on have suggested no big bang issu- Management. centage decline in a year. meeting they should not assume willing to take the lead and be the IMF findings, which they will ance is expected as of now or “I am bearish on the US crude was 5 cents lower Opec would extend output curbs the first to issue, sources told feed back to finance ministers coordinated issuance that was pound and I think it will be at $49.23 a barrel. The contract to offset rising production from Reuters. and central bank governors initially thought may be possi- lower a year from now. Sim- fell below $50 on Thursday for US shale fields, industry sources Growth-linked, or GDP- before their G20 meeting in Ger- ble," said one of the sources who ilarly, while the U.K. economy the first time since December. told Reuters on Thursday. Ana- linked, sovereign bonds allow a many on March 17-18. declined to be named as the dis- will not unravel due to Brexit, US crude is on track for a drop lysts said they expected a period country's repayments to fluctu- They were told that the main cussions were private. I would expect the process to of more than 7 percent this of market consolidation after ate depending on its level of obstacles to the project was a "It was more a recognition take a toll on growth for many week, its biggest weekly fall for the heavy falls this week, but economic growth or contraction lack of investor demand and the of the work that was done, a years to come.” five months. there could be another sell-off - meaning, for example, a gov- stigma attached to such instru- sharper understanding of the Yesterday's reports come Market confidence faltered if investors were forced to sell ernment would pay less if its ments, according to two sources key impediments and a possi- after housing data yesterday after news of another big rise loss-making contracts. revenues were hit by close to the discussions. These ble way forward. There is a little showed demand had in US crude inventories that "The market remains over- recession. kind of bonds have so far only more work to be done before dropped to a six-month low have built steadily to record whelmingly long and any Policymakers for the Group emerged from debt restructur- these things take off." last month while data last highs as US oil production has further weakness will force of 20 major world economies ings as a way to coax creditors The IMF's report on state- week showed Britain’s key grown this year. additional reductions," Saxo last year agreed on an initiative to accept writedowns. contingent debt, which includes services sector expanded at The Organization of the Bank's head of commodity to create a market for the bonds. One plan mooted by the G20 GDP-linked bonds, is due to be the slowest pace in five Petroleum Exporting Countries strategy, Ole Hansen, told Reu- They commissioned an last year was to have advanced published in late April. months in February. and other exporters including ters Global Oil Forum. China expects 'relatively stable' yuan after losing 7% value last year Beijing exchange rate will be relatively overseas entice investors away Opening the session on Sun- concerns of mounting financial AFP stable," Zhou said in Beijing. from the Chinese market. day, Premier Li Keqiang risks. He added however that "no Trump, however, has repeat- announced a 2017 official eco- Zhou said monetary policy hina's central bank gover- one can predict exactly what edly accused Beijing of nomic growth target of "around would remain neutral, adding nor said yesterday the uncertainties and events" will deliberately weakening the yuan 6.5 percent, or higher if possi- that there was a danger that too Cyuan should be "relatively impact the yuan. to boost exports and has threat- ble", citing an even "more much loosening could fuel asset stable" this year after losing "Of course, the foreign ened to officially declare it a complicated and graver situa- bubbles. seven percent of its value in 2016 exchange market is always very currency manipulator and slap tions" this year. The financial-asset manage- amid accusations by US Presi- sensitive, and will follow the hefty tariffs on its goods. Last year's growth came in ment market is "somewhat dent Donald Trump of currency overall global economy, as well Zhou's remarks came on the at 6.7 percent, lowest since 1990. chaotic" and supervision of risks manipulation. as continuing fluctuations in sidelines of the annual meeting The central bank has quietly must be strengthened, Zhou People's Bank of China Gov- growth in more than a quarter China." of China's Communist-control- tightened monetary policy, rais- added. ernor Zhou Xiaochuan (pictured) of a century last year, with ben- The country has struggled to led rubber-stamp parliament, ing short-term borrowing rates Financing must "serve the said the world's number-two efits for the yuan. prop up the yuan in the face of a where the ruling party approves for the first time since 2013 after real economy," instead of "going economy was expected to stabi- "Under these circumstances, huge flight of capital as the pros- legislation and sends signals an explosion of lending last year here and there without ever lise after posting its slowest we believe this year that the yuan pects of better and safer returns about its plans for the year. to support growth led to reaching the real economy." 18 BUSINESS SATURDAY 11 MARCH 2017 China auto US economy adds 235,000 jobs in February sales jump meeting.