Of course the preeminent question is whether the Fed will raise interest rates soon. But either way, the U.S. energy sector, already under pressure, is about to feel a whole lot more of it – no matter when the Fed raises rates, or how many times it raises them in 2016.
In fact, no matter how you slice it, a wide swath of American oil and natural gas producers are going to catch it in the neck; bankruptcies, mergers and acquisitions, and of course asset sales (one step ahead of the sheriff) will be the order of the day.
This much chaos and consolidation means one thing: There are big profit opportunities for those who tread carefully… Continue reading
Fearing the collapse of the Russian financial system and burdensome Western sanctions in the aftermath of the Ukraine crisis, investors and businesses moved more than $32.6 billion in assets outside of Russia, primarily to offshore accounts, in the first quarter of 2015, according to reports.
Capital flight has several negative effects on the Russian economy, including the loss of tax revenue and the reduction in funding available for investment.
Lack of investment funding also delays attempts to modernize the economy. The Center for Macroeconomic Analysis and short-term forecasts assesses that investment activity is down 20 percent since 2013. Continue reading
Italy’s industry chiefs have warned that the country faces a “full credit emergency” as thousands of companies run out of critical funding, threatening a slide into deeper depression.
Confindustria, the business federation, said that 29% of Italian firms cannot meet “operational expenses” and are starved of liquidity. It said that a “third phase of the credit crunch” is under way that matches the shocks in 2008-09 and again in 2011. Continue reading