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Follow on Google News |  Commodity Weekly Report Ways2Capital 23 June 2015By: ways2capital INTERNATIONAL NEWS ✍ Russian central bank cuts key rate Russia's central bank cut its key interest rate once again on Monday, in a further bid to stimulate economic growth in the country. Led by Governor Elvira Nabiullina, the Central Bank of Russia (CBR) cut interest rates by 100 basis points to 11.5 percent, in line with analyst expectations. It is the fourth consecutive month that it has opted to do so. In a statement, the bank said it was, "taking account of lower inflation risks and persistent risks of considerable economy cooling." It comes after the bank raised the rate to a lofty 17 percent in December 2014 in an attempt to deal with the runaway inflation brought about by the weakened ruble. ✍ Greek Issue International Monetary Fund chief Christine Lagarde warned Greece it would get no leeway on a huge debt payment as EU ministers warned they were looking at a "plan B" for a possible default. Eurozone finance ministers holding a crisis meeting in Luxembourg pressed Athens to finally present a credible reform plan and end the five-month standoff between Greece's anti-austerity government and its creditors. But with Athens owing a 1.6-billion- Greece's creditors are withholding the last 7.2 billion euros of its bailout until Athens caves in, but leftist Prime Minister Alexis Tsipras has refused to make changes to pensions and VAT rates. Europe's most powerful leader, German Chancellor Angela Merkel, weighed in on the issue earlier today when she told German lawmakers in the Bundestag she was "still confident" that a deal was possible. But the mood was darker in an overcast Luxembourg, where ministers were openly broaching scenarios such as a Greek exit from the euro if it defaults on its debts. "The next step to make the deal credible, also financially sustainable, will have to come from the Greek side," the Dutch Eurogroup chief Jeroen Dijsselbloem told reporters. He added that he did "not have a lot of hope" that the Greeks would present a new plan today. No deal at the Eurogroup meeting means the issue will likely go to the wire at an EU leaders' summit in Brussels on June 25 and 26. ✍ China China's outbound direct investment soared in the first five months to 278.4 billion yuan (USD 44.84 billion), official data showed, closing a gap with foreign direct investment inflows as local firms flock overseas for growth opportunities. The 47.4 percent jump in outbound investment, made by non-financial firms, built on the 36.1 percent rise in the first four months. In the first five months of the year, FDI grew 10.5 percent from a year earlier to 331.0 billion yuan, marking a slight slowdown from 11.1 percent growth in January-April, the Commerce Ministry said on Thursday. The government has been encouraging firms to invest abroad to slow down the rapid build-up of foreign exchange reserves and help local firms become more competitive internationally. Analysts expect outbound investment will soon match and overtake the weakening investment inflows, reflecting a cooling economy which in turn seems to have prompted a large jump in outbound flows as businesses looked for growth elsewhere. "The outbound investment is quickening. It's very likely to surpass foreign direct investment this year," said Han Xiushen, a researcher at the commerce ministry's think-tank. ✍ BULLION ✍ Gold One day after surging more than $25 an ounce, gold futures were relatively flat on Friday amid a stronger dollar and ongoing concerns of a Greek default on its sovereign debt.On the Comex division of the New York Mercantile Exchange, gold for August delivery lost 0.10 or 0.01% to $1,201.90 a troy ounce. Gold futures traded in a tight range of 1,198.10 and 1,203.90, ending the week up more than 1.7%. Gold finished with its best five-day period since the week ending on May 15 when it surged more than 3%. The precious metal then fell by more than 1.2% for three consecutive weeks before rallying to close last week up 0.95%.Gold likely gained support at 1,184.00, the low from June 1 and was met with resistance at 1,208.90, the high from May 25.One day after high-level talks in Luxembourg broke-off without a deal in the five-month long Greek debt negotiations, the European Central Bank reportedly increased the cap on its Emergency Liquidity Assistance fund for banks in Greece by €3.3 billion. It came days after depositors took out a reported €2.0 billion from Greek banks in a 72-hour period, underscoring their lack of trust in the teetering economy.Greece is running out of time before it owes the International Monetary Fund a bundled loan payment of €1.5 billion on June 30. At the same time, the remaining €7.2 billion of a €240 billion stimulus package from its international creditors is set to expire at the month. On Monday, all 27 members of the European Union are scheduled to be present at an emergency summit in what could be Greece's final opportunity to avoid a default. During an appearance in St. Petersburg, Greece prime minister Alexis Tsipras indicated that he will be "working for success" at Monday's summit, while adding that "those who invest in crisis and terror scenarios will be proven wrong."Meanwhile, a spokesperson for Germany chancellor Angela Merkel said it isn't too late for Greece to complete a deal as long as it agrees to the reforms required. Gold is considered a safe haven for investors in periods of severe economic instability. It could also be an alternative for European investors concerned with the value of equities and government bonds if Greece leaves the euro zone. Elsewhere, Federal Reserve Bank of San Francisco president John Williams reiterated on Friday that an interest rate hike could be appropriate in 2015, while adding that waiting too long for lift-off poses added risk. The remarks were the first public comments by a Fed governor since the Federal Open Market Committee opted not to issue any definitive wording on the timing of a rate hike on Wednesday.The U.S Dollar Index ,which measures the strength of the dollar versus a basket of six other major currencies, reached a session-high of 94.70 in U.S. morning trading before falling slightly back to 94.39, up 0.20%. Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates. For Quick Trial – 08962000225 Or mail us here: info@ways2capital.com or visit http://www.ways2capital.com/ Contact 0731-6554125 Toll Free – 1800-3010-2007 For Reports And Tracksheets - http://www.ways2capital.com/ End
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