econintersect .com

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

posted on 22 September 2015

Early Headlines: Buy Coal Mines For 0, Price Gouging With Drugs, Shanghai-London Finance Connection, Greek Bank Sqeeze, Libya Peace Plan And More

Written by

Early Bird Headlines 22 September 2015

Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.



  • Asia shares rise, dollar firm on Fed, ECB views (Reuters) Asian shares rose on Tuesday and the dollar held steady as U.S. markets bounced back and the European Central Bank said it was prepared to ease monetary policy further. European markets are seen steady, with financial spread betters expecting Britain's FTSE 100 .FTSE and France's CAC 40 .FCHI to open flat and Germany's DAX .GDAXI to start the day up 0.1%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.4% at 0039 EDT. Australia advanced 0.3% and South Korea .KS11 almost 1%, but most southeast Asian markets retreated. Japanese markets are shut through Wednesday.
  • The world's superpowers store an enormous stockpile of oil in secure caverns and tankers (BBC News) A whole host of countries have poured billions of dollars into developing vast oil storage facilities and more are on the way. But what are these reserves - and why would anyone want to bury oil back into the ground in the first place? The strategy is an outgrowth of the 1973 Arab oil embargo when much of the world suffered from extreme shortages as a result. The U.S. has 700 million barrels of oil stored underground in salt caverns in the U.S. SPR (Strategic Petroleum Reserve); Japan has 500 million barrels stored mostly above ground; and China is building similar reserves.
  • US pharmaceutical company defends 5,000% price increase (BBC News) Turing Pharmaceuticals acquired the rights to Daraprim, a 62-year-old medication used by Aids patients, in August. Turing then increased the price of the drug from $13.50 (£8.70) to $750. The production cost of the medication is about $1 per dose. The justification offered is that the additional income will fund new drug research.


  • Mines in America's Coal Country Just Sold for a Total of Nothing (Bloomberg) Booth Energy Group's Cambrian Coal Corp. paid $0 up front for a Teco Energy Inc. unit that controls a collection of surface and underground mines, a company statement Monday shows. Teco said it may receive $60 million should coal prices reach "certain levels" over the next five years. Bargain-basement coal deals are proliferating as producers bail out of an industry stuck in its worst downturn in decades. Miners are facing a slowing global economy, escalating competition from cheap natural gas and mounting environmental and mining regulations. In February, West Virginia businessman Jim Justice paid Russia's OAO Mechel$5 million and assumed some debt to buy back operations that he had sold to the company in 2009 for $568 million.



  • Osborne Puts It All On Red (City A.M.) Chancellor George Osborne wants a tighter connection between Shanghai and London. Unfazed by August's market shocks, and the authoritarian response from Beijing, Osborne will say at the Shanghai Stock Exchange today:

"Whatever the headlines, regardless of the challenges, we shouldn't be running away from China."

  • Lifetime earnings point to much greater level of equality in Britain (City A.M.) A new study says that when lifetime earnings are measured there is much less income inequality than looking at single year data. Econintersect: There are two possible reasons for this: (1) The working poor toil for wages many more years, on average, than do those with much higher incomes; and (2) some very high incomes are collected only for a relatively small number of years. For example, someone who earns £20,000 per annum for 50 years has the same lifetime income as someone who earns £100,000 per annum for 10 years or £1 million for 1 year. The article discusses implications for public policy:

The finding has important implications for public policy. In a single year, 64 per cent of people pay more in tax than they receive in benefits, yet over the course of a lifetime, 93 per cent pay more in tax than they receive in benefits.

"The existing tax and benefit system, assessed largely against circumstances in the current year, doesn't do especially well at redistributing resources towards the lifetime poor. Targeting lifetime redistribution more effectively may require new policies that take longer-run circumstances into account," said Jonathan Shaw, a senior IFS research economist.



  • Greece's banks could still tip the fragile country into disaster (City A.M.) Capital controls in place to prevent capital flight which would bring down Greek banks are crippling the economy, according to this article. The very actions necessary to prevent the banks from collapsing will result in increased business failures which will cause bank failures from bad debt. Is saving the Greek banks a sisyphean task?



  • China's Slowdown Doesn't Look So Bad in Data From Alibaba, Baidu (Bloomberg) Data culled from China's most-used search engine, biggest online outlet and main bank-card network are signaling stabilization in the nation's economy. Three alternative indicators suggest less of a deceleration in the world's second-largest economy, and reduced risk of a hard landing.
  • China turns to Islamic finance to expand economic clout (Reuters) Islamic finance is gaining prominence as a channel for China to expand its economic influence abroad as banks strengthen ties with Muslim-majority countries and Chinese companies start to tap offshore pools of Islamic funds. With a Muslim population of about 20 million, China has little reason to develop Islamic banking at home. But there are powerful reasons for it to get involved in the sector overseas. China wants to build stronger trade ties with Asian countries under its "One Belt, One Road" strategy to rebuild Silk Road trade links with Asia and Europe. The network will include the world's main centers of Islamic finance, the Middle East and Southeast Asia, where sharia-compliant assets account for as much as a quarter of total banking assets.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.

Econintersect Contributors

Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government

 navigate econintersect .com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved