Just very briefly on three fresh topics for the day.
The G8 leaders meeting today in Italy are in disagreement over economic boost. Germany’s Chancellor Angela Merkel proposes crafting exit strategy for the countries that pumped money into their systems while UK’s Brown believes it is premature to talk about exit strategies. For him, second stimulus is the better agenda. Read the report via FT HERE.
One positive for today is the improved outlook by the IMF on the global economy. From the FT:
The global economy is starting to drag itself out of recession and will grow by 2.5 per cent next year, the International Monetary Fund said on Wednesday, a slightly rosier prediction than it made three months ago.
The IMF said financial conditions had improved more than expected since it predicted in April that the global economy would grow by just 1.9 per cent next year.
To read the news click HERE.
Finally, the oil continues its slide with the crude now more than 3% lower. It is as of this writing at $60.92, after people had less risk appetite this time around before earnings season kicks off. The drop is also partly from the report that OPEC is slowly predicting a slow recovery in oil demand. From the FT:
Global demand for Opec crude oil will take five years to recover to pre-financial crisis levels and investment spending on new production capacity will be sharply lower as a result, the cartel said on Wednesday.
Read the rest HERE.