Excerpts from the chronic crisis
- Organization of Petroleum exporting countries (OPEC) decided in the meeting in Vienna to reduce oil production by 1.5 million barrels per day from Nov. 1, announced Minister for Oil of Saudi Arabia, Ali al – Nouaimi.
With this reduction, which had been requested in a few days ago by Iran, OPEC is trying to scuttle the decrease in oil prices on international markets. However, the stock market price of oil continued to lose ground, reaching almost 61 U.S. dollars in London and 63 dollars in New York after OPEC also announced the decision. Probably, until Nov. 1 the price will reach around 80 dollars, meaning a minimum level that expects exporters (less that Iraq hopes to 100 dollars per barrel.
- European Bank for Reconstruction and Development (EBRD) may record losses this year because of the effects of the global economic crisis, warned its chairman, Thomas Morow in an interview to Financial Times.
“EBRD will be hit at a yet undetermined completely,” said Mirow. “But we will see depreciation of our listed shares and those that are not listed,” he stated. “Do not exclude a loss, but in any case will be affected,” he said Mirow, a former German sectetar state for finance, recently appointed as the head of the institution. EBRD, headquartered in London, is one of a number of 61 countries that fund or receiving aid from the institution. It was founded in 1991 to facilitate the transition from the former Eastern bloc to capitalist economy. As stated in a previous post, European countries will have to shift if they want to continue the large public investment projects.
- Auto market is increasingly affected by global financial crisis. First to have recognized that faces problems were Ford and General Motors (where it seems that we still have a merger). He followed the French company Renault. Recent and German car company Daimler has decided to stop production for five weeks around Christmas, because of the dramatic decrease in demand, informed the publication Frankfurter Sonntagszeitung (FAS). Break will begin on December 11 and will end on January 12, during which time it will not be mounted any car, said a spokesman. As Volkswagen and BMW, Daimler will reduce the massive number of intermediaries, according to the source.