WORLD FINANCE NEWS BRIEF
The future of coal depends on Asian demand, which is still growing, and is offsetting the decline from the rest of the world over the next decade,” said Shirley Zhang, an analyst at Wood Mackenzie Ltd.
Asia’’s share in total global coal demand will expand from about 77% now to around 81% by 2030, according to IHS Markit.
China, which burns and mines about half the world’s coal, fuel is key to economic health.
India, the government of Prime Minister Narendra Modi last month reinforced its commitment to coal as part of broader Covid-19 stimulus measures, including more than $6 billion on coal transport infrastructure and offering 50 mining blocks for auction.
Occasionally, reality intrudes and there is a sharp retreat, as investors realise some of the shares they are buying are in companies that will struggle to be profitable in current conditions.
It was not difficult to work out that the economic and business outlook was going to drop off a cliff and stay very poor for most of this year, but this did not guarantee a long and uninterrupted bear market.
Together the central banks have responded on a colossal and unprecedented scale, dwarfing what they did eventually to end the 2008-09 banking crash.
They have promised governments that their borrowings will be at very low or negative interest rates, underwritten by their collective support for the secondary bond market.
The famed stockpicker had his worst performance versus the S&P 500 in a decade in 2019, and 2020 is shaping up to be nearly as bad.
Pershing Square founder Bill Ackman, the hedge fund manager who has been a longtime admirer of Mr Buffett, sold his holding in Berkshire shares in order to invest the money in other stocks himself.
The $760bn-in-assets conglomerate is skewed towards financial companies — it owns large insurance companies, such as Geico, outright and stakes in many of America’s largest banks — and industrials.
“Berkshire Hathaway remains designed to reward investors over time but not on time,” said Thomas Russo, a managing member of Gardner Russo & Gardner, which owns Berkshire stock.
Now, with no work insight, he has sold his BMW, his wife’s jewellery and most of his furniture. His daughter has been blocked from her university’s online education system, unable to pay the fees.
Hussein switched from expensive imported cigarettes to locally produced ones after losing his job.
Hussein was an early victim. His employer of 12 years imported cosmetics. It ended his employment in November.
GCC NEWS BRIEF
Indian expatriates have been involved in the rapid evolution of the UAE’s economy. Apart from constituting a large number of white-collar professionals, they also provide the bulk of the country’s manual labour force.
Last year, AED 169 billion ($46 billion) in remittances flowed out of UAE more than half of it into the countries of South Asia, of these India primarily. This remittance flow is the second highest in the world.
The UAE government has legislated to ensure that the most vulnerable of workers continue to receive food and accommodation, even if they are temporarily out of work, and has introduced measures to provide financial support to them and their families.
The government has also granted automatic extensions of all visas, including residency and work permits.