JAKARTA (TheInsiderStories) -Good Morning! Italy has fallen back into recession after economy shrinks by 0.2 percent. The country damaged intensifying concerns about the 19-country eurozone economy.
The third largest economy in the Eurozone crisis could bring negative effect to the European and global economy. Many economists predict the effect would be much worse than Greece who its debt crisis shook global market nearly a decade ago. Italy’ economy is 10 times larger than Greece.
Italy’ recession is one reason why the wider eurozone slowed in 2018, along with uncertainties related to Brexit, the China – United States (US) trade war and new vehicle emissions standards.
With the US-China trade talks ongoing in Washington, President Donald Trump in his twitter account stated will join the discussion for high-level officials. He is scheduled to meet Chinese Vice Premier Liu He at 3:30 p.m EST.
From the meeting, there is an indication that China will follow US demands for deepen economic reforms. So far, he said, the meetings are going well with good intent and spirit on both sides. He also stressed that China would better make a deal with the US, if they don’t want another tariff increase.
At the same time, US will prepare the second meeting between Trump and North Korea Leader Kim Jong Un, in February. US Foreign Ministry has sent a team to discuss the future meeting. In the preparation talks, US will lay the foundation to make a substantial additional act for creating denuclearization in Korean Peninsula, and giving better future for North Korea citizens.
It is still unclear about the location of meeting. The plan only stated that it will be held in Asia. Around two weeks ago, official said, Vietnam is open to host Trump-Kim meeting.
On Thursday (01/31), US crude oil prices slipped and ended lower amid the Organization of Petroleum Exporting Countries (OPEC) efforts to reduce excess supply. West Texas Intermediate (WTI) oil prices for the March 2019 contract closed down 44 cents at the level of $53.79 per barrel on the New York Mercantile Exchange. However, WTI posted its biggest monthly increase for January since 1983.
While, the Brent oil price for delivery in March 2019, was able to close up 24 cents at the level of $61.89 per barrel on the ICE Futures Europe exchange in London. The Brent futures contract has risen 15 percent throughout January.
The global benchmark oil traded at a premium of $8.10 against WTI. But the Brent price for a more active contract in April 2019 fell 70 cents to as low as $60.84.
Oil prices have risen this year after plunging nearly 40 percent in the last quarter of 2018. The decline prompted the OPEC and its allies to commit to limiting production to help offset growth in American production.
On the other hand, the political crisis in Venezuela threatens to limit further oil supply, while the question of whether the US and China can resolve their trade conflicts remains important for demand sentiment.
From domestic side, today Statistic Indonesia will release the inflation data. Last month, the country’ inflation recorded 0.62 percent and in annual basis 3.13 percent.
Bank Indonesia and the Government has agreed on three strategic steps to keep inflation within the target range of 3.5±1 percent in 2019. Firs steps, its to maintain price affordability, supply availability, smooth distribution, and effective communication.
May you have a profitable day!