The social media
giant, Facebook Inc, is planning to release its very own cryptocurrency, named
Libra, by next year. The hope is that the Libra will be traded on a global
scale in the future.
According to reports
by Bloomberg, Facebook has said that the goal is for the cryptocurrency to be used
in everyday transactions and that Libra will not only be better than Bitcoin,
but it could even one day rival the US Dollar.
Alastair Marsh of
Bloomberg news said that this is a “really big deal, not only for crypto but
potentially for the global financial economy as well.
According to a report
by the British Chambers of Commerce (BCC) business investments across the UK
are coming to a halt and the economy is forecasted to see zero growth in the
As mentioned in
Parliament on Monday, the Bank of England’s forecast states that there is a one
in four chance of the UK economy dipping into recession. The manufacturing
sector is already in recession as stockpiles are now stagnant because Brexit
has not yet been settled, with car manufacturing down five percent in the last
quarter. This means that jobs and investments have been cut.
A few months ago,
predictions were that the oil market for 2020 would be the one to look out for
as “many market commentators predicted
that if $100/bbl-oil was going to make a comeback, it would happen in 2020,”
according to Bloomberg. But the release of the first official assessment of
2020 by the International Energy Agency on Friday shows persistent surpluses
could be accumulated next year. This does not indicate rising prices, which were
previously predicted and the reason why investors kept a keen eye on the oil
German exports fell
by 0.5 percent from April 2018 to April 2019, according to the Trade Balance
report released by the Statistisches Bundesamt Deautschland
The overall German
export value for the month of April 2019 was estimated to be 109.7 billion euros,
while the value of imported goods stands at 91.7 billion euros. In contrast to
German exports, imported goods increased by 2.1 percent in April 2019 year on
year. “After calendar and seasonal
adjustment, exports were down 3.7 percent and imports 1.3 percent compared with
March 2019,” the report states.
withdrew its proposal to merge with French automaker Renault due to the lack of
political conditions that would ensure a successful deal.
The talks between the
two automobile companies have been going on since May and after a series of late-night
meetings, the French government requested a vote for or against the merger to
The French government
owns 15 percent of Renault and as it did not see assurances on a number of
matters, including job security, it hoped for more time to complete the merger.
The hot topic lately
in the news is trade. During President Donald Trump’s state visit to Britain
and his meeting with Prime Minister Theresa May, he encouraged the UK to get Brexit
over with so that the U.S and the UK could come to a trade deal. According to
Bloomberg, Trump said that a deal would triple trade between the two countries.
In other news,
Chinese President Xi Jinping said that China’s economy is stable, healthy and
well placed to meet all risks and challenges, according to a transcript
published by the Xinhua news agency just before Xi’s state visit to Russia.
The British Retail
Consortium (BRC) released its Like-For-Like Retail Sales report, which measures
changes in the actual value of retail sales from participating companies with
invaluable management information on a regular and reliable basis. For May this
report showed retail sales dropped by 2.7 percent, which is the biggest drop
This drop can be
explained, in part, by the fact that last year the UK saw lots of sunshine
around this period, the World Cup was on and the royal wedding gave everyone
something to cheer about, giving people more incentives to spend.
The Markit Economics
released the Caixin China Manufacturing Purchasing Managers Index (PMI) this
morning, showing that operational conditions have improved slightly for May.
According to the
index, total new work rose at a fast pace for Chinese manufacturing firms in
May. Export sales also saw an increase while production was broadly stable. As
production rose and employment levels remained the same, a backlog of work
continued to be on the rise.
In his latest bid to control illegal immigration from
Mexico, U.S President Donald Trump has announced that all goods coming from
Mexico to the U.S will carry a tariff of up to 25 percent.
In a tweet he stated that as of June 10 there will be
a five percent tariff put on all imports coming into the U.S from Mexico, and
this will slowly rise “until such time as illegal migrants coming through
Mexico, and into our Country, STOP. The Tariff will gradually increase until
the Illegal Immigration problem is remedied.
As the world’s two
largest economies, the U.S and China, show no signs of coming to some kind of
agreement when it comes to the trade war, the Dollar reached an almost two-year
high yesterday at 98.371, while the world fears for the worst.
Trade talks have been
going on for ten months now and with President Donald Trump raising tariffs on
Chinese imports earlier on in the month, the economies on both sides of the
Atlantic are continuing to feel the strain.