Saudi Arabia is currently suffering from a great deal about the economy. The murder of Jamal Khashoggi has been condemned by Saudi Arabia's prince, Mohammad bin Salman, as the dominant force behind it.
Jamal Khashoggi is a opposite position journalist from Saudi Arabia, writing critical articles about the Saudi Arabian royal family. On October 3, the Saudi Arabian consulate in Turkey was killed and the royal family of Saudi Arabia rose to the forefront.
However, US president Donald Trump did not seem to care about it, but he was just thinking about international oil prices.
Because the US president did not care, others were not okay, and a lot of foreign capital, which had flowed into Saudi Arabia because of the killing, are not being leaked.
So, it is planned by Prince Mohammad bin Salman. The oil diversification and the economic diversification of Saudi Arabia are in trouble now.
In fact, it decided to postpone the public offering of Aramco, the state-owned enterprise that will become the capital of Saudi Arabia's core economic diversification.
And last month, Saudi Arabia government planned the investment diversification project, but many investors have already declared their absence and there are many trial and error.
Saudi Arabia's economic diversification plan, which has been difficult due to the Jamal Khashoggi offensive, has become more difficult. Saudi Arabia's government will have to concentrate on the OPEC meeting next month, but experts should analyze its plans to diversify the economy further.
Showing posts with label #economy. Show all posts
Showing posts with label #economy. Show all posts
11.24.2018
11.20.2018
The under pressured British from EU with agreement after Brexit
After the brexit declaration in the UK, the EU and Britain have reached an agreement and procedure for withdrawal from the EU. Of course, it is a gradual withdrawal over time rather than a sudden withdrawal, and the UK has been negotiating the issues of trade, territory and fishing rights with the EU countries and has been underway.
But the situation has changed in Spain and France, which are in contact with the British seas. Still, progress on territory and fishing rights agreements is slow and there are no more concessions in the EU. It is currently under pressure in Britain and is awaiting the signing of the EU summit on the 25th.
In the UK, the prime minister is moving to seek consensus, even in the case of a prepared agreement, and conservative hardliners are showing stiff opposition. It is not fully prepared yet and it is still unclear what will happen on the 25th.
If it doesn't happen to agree, it will change to be held until 2020 instead of a formal withdrawal next year as scheduled. And there are sill many opinions by Britons claiming Brexit's retribution, up to the recent 700,000 British protesters. As a result, the UK still has some chaos about Brexit, and we can not figure out how to get there after Brexit.
But the situation has changed in Spain and France, which are in contact with the British seas. Still, progress on territory and fishing rights agreements is slow and there are no more concessions in the EU. It is currently under pressure in Britain and is awaiting the signing of the EU summit on the 25th.
In the UK, the prime minister is moving to seek consensus, even in the case of a prepared agreement, and conservative hardliners are showing stiff opposition. It is not fully prepared yet and it is still unclear what will happen on the 25th.
If it doesn't happen to agree, it will change to be held until 2020 instead of a formal withdrawal next year as scheduled. And there are sill many opinions by Britons claiming Brexit's retribution, up to the recent 700,000 British protesters. As a result, the UK still has some chaos about Brexit, and we can not figure out how to get there after Brexit.
11.18.2018
What about NZ real estate price.
One of New Zealand's most popular investment destinations is real estate. New Zealand, located in the Pacific Rim, is catching up with earthquake risks but the housing market is very big and popular. The reasons for this are the favorable environment of the New Zealand dollar, the generosity of foreign capital inflows and the similarity of the New Zealand national system to the western countries.
However, the government now envisions that property prices are higher than the fair price, and that the non-housing population is still so high that foreign capital can no longer affect real estate.(Source:https://www.bbc.com/korean/international-45204237)
The bill, which was enacted in August this year, is not yet fully effective, but experts expect it to be somewhat effective. The government has been trying to reduce the non-residential population by a little while reducing the popularity of real estate and the price of real estate due to the inflow of foreign capital, and to make the real estate available only in New Zealand, i want to bring down the rate.
In fact, real estate prices are now down slightly, and experts say real estate prices will ease. However, there is a lot of opinion that the real estate fever that as already started is not easily turned off\, and the housing shortage has not been eased yet, and the enacted law will soon become ineffective.
There are a lot of people who think that New Zealand house prices have a lot of bubbles right now, and now real estate prices are linked to the global housing boom. It is a very popular and attractive investment target because it can steadily acquire income by renting the capital of the house Countries where the housing boom has taken place will try to lower real estate prices, and New Zealand is no exception.
However, the nature of the housing capital means that people with money not be willing to give up real estate easily and that the price bubble will not go away. Of course, New Zealand was popular with foreign investors because of its good nature and air, and real estate was buoyant, but that did not mean it was not popular with locals. However, the scale of real estate competition is only slightly smaller. Of course, the price may be eased or reduced, but if the immigrants come to New Zealand and are interested in real estate, then there will be a lot of competitors and bubbles in the price.
The government-enacted real estate law is temporary, but i think it is effective, but it is only temporary and expects property prices to rise again.
(Translated from https://ideaofbrad.blogspot.com/2018/11/blog-post_18.html)
11.15.2018
How to decide petrol price.
Now a day, it seems like that petrol price is like heavy wave. That is like too much up and down. Just 2 weeks ago, petrol price was 245 cents but now is 215 cent. While 2 weeks that changed 10% more.
So i feel curious and search why it happen like that.
First, Let's see how to decide petrol price.
(Source-https://www.aa.co.nz/cars/owning-a-car/fuel-prices-and-types/how-petrol-prices-are-calculated/)
As we can see, we can find four major point which can change the price.
Refine fuel - Obviously, most effective point is original fuel price. That is depending on international oil price. International oil prices are on the decline nowadays. The price of oil that has gone down considerably is one of them.
Fuel excise - This is also a very important factor and accounts for about 30% of the oil value. Domestic consumption tax is simply a tax imposed by the country, and New Zealand is adhering to environmentalism as a policy, and crude oil, which is one of the causes of harm to the environment, is taxed high. It is expected that higher taxes will be imposed, as oil tax now in Auckland will be implemented nationwide soon.
GST - Another type of tax is the tax that applies to all consumption, not just crude oil. In the end, crude oil is one of the reasons for double taxation and higher oil prices than other countries.
Importer margin - A 19 percent profit from a crude oil importing company is not always the case, but there is news that an oil company has tried to fix it in old New Zealand articles, raising questions about whether 19 percent is true. However, it is expected that it will not happen with a high probability because collusion is difficult because it is not one or two crude oil companies.
Looking at the share of crude oil price, it is difficult to say that the current price of crude oil has fallen due to the temporary decline due to the fall in oil prices, but the price has still exceeded 200 cents. However, it is expected that oil prices will rise again in Christchurch soon. As I see this, I feel a sense of New Zealand crude oil prices and I think it is possible to predict crude oil prices to a certain extent by reading international oil prices and the government's crude oil measures.
So i feel curious and search why it happen like that.
First, Let's see how to decide petrol price.
(Source-https://www.aa.co.nz/cars/owning-a-car/fuel-prices-and-types/how-petrol-prices-are-calculated/)
As we can see, we can find four major point which can change the price.
Refine fuel - Obviously, most effective point is original fuel price. That is depending on international oil price. International oil prices are on the decline nowadays. The price of oil that has gone down considerably is one of them.
Fuel excise - This is also a very important factor and accounts for about 30% of the oil value. Domestic consumption tax is simply a tax imposed by the country, and New Zealand is adhering to environmentalism as a policy, and crude oil, which is one of the causes of harm to the environment, is taxed high. It is expected that higher taxes will be imposed, as oil tax now in Auckland will be implemented nationwide soon.
GST - Another type of tax is the tax that applies to all consumption, not just crude oil. In the end, crude oil is one of the reasons for double taxation and higher oil prices than other countries.
Importer margin - A 19 percent profit from a crude oil importing company is not always the case, but there is news that an oil company has tried to fix it in old New Zealand articles, raising questions about whether 19 percent is true. However, it is expected that it will not happen with a high probability because collusion is difficult because it is not one or two crude oil companies.
Looking at the share of crude oil price, it is difficult to say that the current price of crude oil has fallen due to the temporary decline due to the fall in oil prices, but the price has still exceeded 200 cents. However, it is expected that oil prices will rise again in Christchurch soon. As I see this, I feel a sense of New Zealand crude oil prices and I think it is possible to predict crude oil prices to a certain extent by reading international oil prices and the government's crude oil measures.
11.14.2018
New Zealand`s interest rate and increased USA interest rate
There is a origin article - https://ideaofbrad.blogspot.com/2018/11/blog-post_12.html
The origin article is Korean so i translated and make summary of them.
As you can see from the source news here, interest rates are expected to be frozen from 2019 to 2020. The employment rate is fine, and consumer price inflation is calculated below the mid-2 percent that the government wanted, and it is frozen as a reason to raise inflation. Though not mentioned in this article, the government's desired GDP growth rate is 3 percent, this time a little more than 3 percent, but there is still a risk of a growth rate declining later on.
And the government announces that the New Zealand dollar should be a little cheaper. The reason is that New Zealand's exports are due to the fact that the New Zealand dollar is a little cheaper, which creates export competitiveness, which in turn increases the size of New Zealand's economy. And as you can see, interest rate hikes of the United States, but New Zealand still has a strong economic growth in the country due to GDP growth, strong exports, i do not think it is the same.
Therefore, New Zealand interest rates will not go down for a while, and in fact, even i The government raise interest rates in New Zealand, the banks are often tied up with money, so there is no reason to raise interest rates. However, real estate price have not resolved and many real estate policies are still in place, but they are not so effcetive.
As you can see, putting money in a bank in not so profitable unless the interest rate is low and it is not a huge capital, so i do not think the real estate not earn money with interest rates, the way to make money by investing is usually real estate and stocks are not popular.
The origin article is Korean so i translated and make summary of them.
As you can see from the source news here, interest rates are expected to be frozen from 2019 to 2020. The employment rate is fine, and consumer price inflation is calculated below the mid-2 percent that the government wanted, and it is frozen as a reason to raise inflation. Though not mentioned in this article, the government's desired GDP growth rate is 3 percent, this time a little more than 3 percent, but there is still a risk of a growth rate declining later on.
And the government announces that the New Zealand dollar should be a little cheaper. The reason is that New Zealand's exports are due to the fact that the New Zealand dollar is a little cheaper, which creates export competitiveness, which in turn increases the size of New Zealand's economy. And as you can see, interest rate hikes of the United States, but New Zealand still has a strong economic growth in the country due to GDP growth, strong exports, i do not think it is the same.
Therefore, New Zealand interest rates will not go down for a while, and in fact, even i The government raise interest rates in New Zealand, the banks are often tied up with money, so there is no reason to raise interest rates. However, real estate price have not resolved and many real estate policies are still in place, but they are not so effcetive.
As you can see, putting money in a bank in not so profitable unless the interest rate is low and it is not a huge capital, so i do not think the real estate not earn money with interest rates, the way to make money by investing is usually real estate and stocks are not popular.
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