Archives for November 2018

It will envisage “the possible construction of a major NPP (nuclear power plant), designed by Russia,” according to Russia’s ambassador to Buenos Aires Dmitry Feoktistov.

“Russia is ready to bring a ready-made project and its own financing to Argentina,” he said, adding that “we can build such a power plant, operate it and sell electricity to Argentine partners at a certain fixed price.”

Also on rt.com Russia’s Rosatom to start construction of 7th power unit at Chinese nuclear power plant

Russian President Vladimir Putin will attend the G20 summit in Buenos Aires between November 30 and December 1. The sides will also discuss the possibility of joint construction or sale of a floating NPP.

READ MORE: Russian nuclear energy deals with Egypt reach almost $60bn

Global demand for Russian-built nuclear power plants is on the rise. Russia’s state nuclear corporation Rosatom expects to sign foreign contracts worth $26 billion this year for the construction and maintenance of nuclear facilities.

Russia is constructing NPPs in China, India, Iran, Turkey, Egypt, and a number of other countries. Earlier this month, Russia agreed the construction of new units at the Tianwan nuclear power plant in China which is the biggest joint NPP project between the two nations.

Also on rt.com Russia ready to help Japan clean up Fukushima disaster

Construction work on Kudankulam NPP, the single largest nuclear power station in India, is also underway. The NPP was first agreed back in 1988 with the Soviet leadership.

Rosatom is also building Egypt’s first NPP and, according to President Putin, Russia will contribute to setting up “a whole new nuclear power industry” in the country.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/445062-russia-argentina-nuclear-power/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“According to WTO estimates, the mutual restrictions recently imposed by G20 countries reduced global trade by almost $500 billion. Is anyone interested in this, including such a large economy as the US? For us this creates certain opportunities,” Putin said, explaining that Russia will supply soybeans to China instead of the US.

via GIPHY

Russia to replace US soybean exports to China amid escalating trade war

“The United States supplied in huge quantities, now we will deliver. We agreed with our Chinese friends that we’ll supply poultry meat and some other goods. But in fact the Americans themselves voluntarily abandoned this market, a very huge one..,” the Russian president stressed.

Washington and Beijing have been locked in a standoff over the trade balance, technology secrets and market access since May, when US President Donald Trump approved tariff hikes on billions worth of Chinese imports. So far, Washington has imposed import duties on $200 billion of Chinese goods, while Beijing retaliated with levies on $60 billion of US imports, and stopped buying American oil.

Over the last two months, the world’s two largest economies have been holding talks, trying to come up with a solution to resolve the trade conflict. However, all attempts have been futile so far.

Last week, managing director of the Money and Derivatives Markets at the Moscow Exchange, Igor Marich, said that the ongoing trade conflict between Beijing and Washington would make Chinese investors look for opportunities in Russian markets.

Earlier this month, Russian Prime Minister Dmitry Medvedev said that Russian producers may potentially replace the US in supplies of day-to-day produce, including soybeans, pork, rice, poultry and fish.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/445058-putin-us-china-trade-war/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The Russian president called on the United States to abandon the policy of unilateral sanctions and seek common ground.

“We are not setting the target of moving away from the dollar – the dollar is moving away from us, and those who take respective (sanctions) decisions are shooting themselves not just in the foot, but slightly higher, as such instability in calculations in dollars creates a desire of many global economies to find alternative reserve currencies and create settlement systems independent of the dollar,” Putin said.

Russia and China ditching dollar for national currencies payment system to avoid sanctions

The Russian economy has adapted to difficulties and is feeling confident; investors have no doubts about its stability, added Putin.

“I think, there is an understanding that despite any crises and even artificially-created difficulties, the Russian economy is adapting to these difficulties, feeling confident, creating conditions for its own internal development,” said the Russian president.

via GIPHY

Putin noted that Moscow knows how to strengthen its financial system. “Our GDP growth is 1.5 percent, which does not seem like a lot, but investments in the fixed capital are higher than the GDP growth at 4.1 percent. This means that investors are certain about the future, they understand the policies implemented by the financial authorities in Russia, that it is stable, reliable and predictable.”

The president stressed that sanctions against Russia are hurting Europe and have caused the loss of 400,000 jobs there. He added that Russia is working with key trade partners on setting up payment systems independent from the SWIFT network.

President Putin also pointed out that the ongoing trade war between the United States and China is creating broad opportunities for Russia.

“According to WTO estimates, the mutual restrictions recently imposed by G20 countries reduced global trade by almost $500 billion. Is anyone interested in this, including such a large economy as the US? For us, this creates certain opportunities,” said Putin, explaining that Russia will supply soybeans to China instead of America.

Also on rt.com Russia to replace US soybean exports to China amid escalating trade war

“The United States supplied in huge quantities, now we will deliver. We agreed with our Chinese friends that we’ll supply poultry meat and some other additional goods. But in fact the Americans themselves voluntarily abandoned this market, a very huge one…” said the Russian president.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/445047-putin-pulling-dollars-russia/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Just days before Chinese and American leaders are set to meet on the sidelines of the G20 summit in Argentina, the Chinese envoy to the US issued an ominous warning against further escalation of the trade conflict that could potentially break the symbiosis of the two largest world economies, and entirely cripple global trade.

“I don’t know if people really realize the possible consequences – the impact, the negative impact – if there is such a decoupling,” Ambassador Cui Tiankai told Reuters in an interview, stressing that further escalation could recreate the dire economic conditions that once led to World War II.

Also on rt.com Trade war with US pushes China to sweeten relations with India

“The lessons of history are still there. In the last century, we had two world wars, and in between them, the Great Depression,” the ambassador said. “I don’t think anybody should really try to have a repetition of history. These things should never happen again, so people have to act in a responsible way.”

via GIPHY

President Donald Trump has repeatedly told reporters that tariffs on an additional $267 billion worth of Chinese goods are ready to go, should Beijing refuse to bow to US demands and stop intellectual property theft. While looking to strike a deal with China, Trump made clear on Monday that he remains firm in his commitment to close the massive trade deficit with China. If Trump decides to impose additional tariffs, the hiked taxes would apply to a total of over $517 billion of Chinese goods.

Also on rt.com Chinese investors may turn to Russian market amid escalating trade tensions with US

“The only deal that would be really acceptable to me – other than obviously we have to do something on the theft of intellectual property, right – but the only deal would be China has to open up their country to competition from the United States,” he told the Wall Street Journal on Monday. “They have to open up China to the United States. Otherwise, I don’t see a deal being made.”

The Sino-American trade conflict entered a crucial state stage in September, after tit-for-tat tariff hikes targeting in total some $260 billion of bilaterally traded goods officially came into effect. Over the last two months, the countries have been holding talks, trying to come up with a solution to fix the trade dispute. So far, all such attempts have been futile.

Trump and his Chinese counterpart, Xi Jinping are set to meet as early as Friday on the sidelines of the G-20 summit in Argentina, and are also expected to have dinner on Saturday.

Like this story? Share it with a friend!

Article source: https://www.rt.com/business/445028-trade-war-great-depression/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The latest data from the industry body revealed that the US automaker sold just 211 cars in China last month, an official from the China Passenger Car Association told Reuters.

In October, the electric carmaker said the increased tariffs on auto imports were putting the company in a hard position, impacting its competitive performance in China. Tesla is currently importing all the automobiles it sells in the world’s largest car market. The Chinese government raised import duties on US vehicles to 40 percent as part of its retaliation against similar steps taken by Washington.

Also on rt.com Germany tops US as China’s leading car exporter amid mounting trade disputes

Last week, Tesla announced plans to slash prices of its electric vehicles, including the Model X and Model S, in China by 12 percent to 26 percent respectively. The step will reportedly make the cars more affordable and will help to absorb more of the hit from tariff hikes.

“We are absorbing a significant part of the tariff to help make our cars more affordable for customers in China,” the statement reads.

Earlier this month, the US electric carmaker outlined plans to build a plant in China, where the company hopes to produce up to 3,000 of its popular Model 3 sedans a week. The measure is also aimed at reducing the impact of tariffs.

The trade conflict between Beijing and Washington started in early July after US President Donald Trump imposed a 25-percent tariff on $34 billion worth of Chinese goods. In response, Chinese authorities hit an equal volume of US goods with an import tax of 25 percent. Later, Trump extended the levies to $200 billion worth of Chinese products, with Beijing responding with another $60 billion in tariffs on US goods. So far, trade negotiations between the world’s largest economies have stalled.

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/444983-china-tesla-sales-plunge/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The president’s remarks follow GM’s announcement on Monday about closing assembly plants in Detroit-Hamtramck and Lordstown, Ohio, along with transmission plants in Warren and the Baltimore area.

“We don’t like it,” Trump said, adding “I believe they’ll be opening up something else.” The president said that he was “very tough” with GM CEO Mary Barra when speaking with her after the announcement. “I said, ‘You know, this country has done a lot for General Motors. You better get back in there soon. That’s Ohio, and you better get back in there soon.’”

Also on rt.com Trump tells biggest US automakers to bring production back to America

Trump also said that the tariffs, which GM warned would “undermine [its] competitiveness against foreign auto producers..,” have “nothing to do” with the layoffs.

GM is set to idle five factories in the US and Canada and eliminate about 14,000 jobs, more than ten percent of its North American workforce.

The US automaker explained its decision as a response to a slowdown in new-car sales, as well as to consumers shifting toward pickup trucks and sport-utility vehicles.

READ MORE: ‘Anti-American’ tag by Trump a new nightmare for US businesses

Ohio Senator Sherrod Brown called the decision “corporate greed at its worst.” He said it was “clear” that GM “doesn’t respect” the Lordstown workers, and slammed the car company for not doing enough to reinvest the savings from its tax cuts.

Also on rt.com ‘Make in USA or pay big border tax’: Trump blasts GM over cars made in Mexico

One of the plants where GM plans to slash production and lay off workers is in the area where Trump has promised to boost employment. In July 2017, speaking at a rally about 20 miles away in Youngstown (Ohio), Trump said he saw too many empty factories in the area and pledged to revive manufacturing there.

“I said, those jobs have left Ohio. They’re all coming back. They’re all coming back. Don’t move, don’t sell your house,” he said.

US Senator Bernie Sanders slammed both GM and President Trump in his Facebook post on Tuesday. Sanders called the automaker’s $514 million in tax breaks the result of the president’s tax giveaway to the wealthy, and the decision to close factories “outrageous.” The senator added that “the corporate greed of GM is destroying the social fabric of America.”

For more stories on economy finance visit RT’s business section

Article source: https://www.rt.com/business/444973-trump-general-motors-plant-closure/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Between 2015 and 2017, shale drilling activity fluctuated with oil prices (though on a several-month lag), with drillers deploying rigs and adding output when prices rose, and scrapping rigs and dialing back on activity when prices dipped. Drilling and production has always fluctuated with prices, but the much shorter lead times for shale compared to conventional drilling, meant that the oil market was responding much quicker to price changes.

via GIPHY

Also on rt.com Crude mood: Oil enters bear market, plunging most since 2015

The ebb and flow of drilling activity gave rise to the “shale band” theory, which dictates that oil prices had an upper and lower bound, largely decided by shale output. Whenever prices tested one of those limits, US shale would steer them back into the middle of the range.

More specifically, if prices rose to, say, $60 per barrel, shale activity would ramp up and new supplies would come online, dragging prices back down below that threshold. If prices fell to $40 per barrel or below, drilling dried up and the drop (or slowdown in growth) tightened the market just enough to push prices back up.

Since late 2017, when the OPEC+ production cuts really began to bite, Brent prices reliably rose above $60 per barrel and stayed there. While prices bounced around this year, they did so above the roughly $40-$60 price range that dominated the oil market over the last several years. As such, US shale continued to grow rapidly and consistently. Outages elsewhere in the world, combined with OPEC+ action, kept prices from falling.

Also on rt.com US oil production is set to soar past 12 million barrels per day

Until this past month. The crash in oil prices – down more than a third since October – could make the shale band theory relevant again. WTI is down in the low-$50s per barrel, and is starting to flirt with levels that could impact drilling operations. At $50 per barrel, “we generate enough cash to still grow our production single digits within our cash flow,” Whiting Petroleum’s CFO Michael Stevens said at an industry conference this month, according to the Wall Street Journal. “So $50 is an important floor for us.”

Moreover, while many shale drillers have cut their breakeven prices over the past few years, pressure from shareholders on capital discipline is much stronger than it used to be. In years past, shale drillers could pile on the debt, promising to eventually be profitable, and investors went along. That is no longer the case.

That means that the pressure to cut back in order to preserve profitability is potentially higher than it used to be.

Washington looking for anti-monopoly tool to kneecap OPEC oil cartel

On top of that, some shale regions are still suffering from discounts because of pipeline issues. So, while WTI is now in the low-$50s, some shale operators might be fetching even less. Earlier this year, Permian discounts exceeded $10 per barrel. The Bakken is expected to see its discount worsen as pipelines fill up. The flip side is that drilling techniques have advanced considerably over the last few years, boosting production rates and lowering cost. That could allow EPs to weather the current downturn – should it stick around – much better than last time.

As the WSJ notes, the shale industry is in the midst of putting together drilling plans for 2019. Up until now, very few industry insiders or analyst forecasts had prices falling below $60 per barrel next year. The recent plunge could force a rethink. If the industry goes in a more conservative direction, shale output might not grow as much as previously thought.

With all of that said, OPEC+ could put an end to the latest slide in prices as early as next week. Rumors of a large production cut began circulating a few weeks ago, and the lower prices go, the more likely it is that the cartel will take action. At this point, with expectations of some sort of action largely priced in, inaction would likely drag prices down much farther. As such, it seems highly unlikely that OPEC+ will do nothing.

This article was originally published on Oilprice.com

Article source: https://www.rt.com/business/444958-oil-prices-us-shale/?utm_source=rss&utm_medium=rss&utm_campaign=RSS