Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-59855 Sun, 22 May 2016 21:21:08 GMT Petroyuan is Here; Will It Take Over? http://implode-explode.com/viewnews/2016-05-22_PetroyuanisHereWillItTakeOver.html The Russian-Chinese energy alliance is proposed to go longer. Moscow and Beijing have made their interchanges of petroleum a channel of transition towards a multipolar monetary system, that is to say, a system that is no longer based on the dollar alone, but takes into account various currencies and above all, that reflects the correlation of forces in the current world order. The economic sanctions imposed by Washington and Brussels drove the Russians to eliminate the dollar and the euro from their commercial and financial transactions, since otherwise, they would be too exposed to suffer sabotage in the moment of realizing buying and selling operations with their principal trading partners.

For this reason, from mid-2015, the hydrocarbons that China buys from Russia are paid in yuans, not in dollars, information that has been confirmed by high executives of Gazprom Neft, the petroleum branch of Gazprom [5]. This has lead to the use of the "people's currency" (‘renminbi') in the world oil market and at the same time allows Russia to neutralize the economic offensive launched by the United States and the European Union. The underpinnings of a new financial order supported by the petroyuan is emerging: the Chinese money is preparing to become the axis of commercial exchanges of the Asian-Pacific region with the principal petroleum powers.

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iehi-feed-59841 Fri, 20 May 2016 21:26:53 GMT Business Loan Delinquencies Spread From Energy; Spike to Lehman Level http://implode-explode.com/viewnews/2016-05-20_BusinessLoanDelinquenciesSpreadFromEnergySpiketoLehmanLevel.html iehi-feed-59829 Thu, 19 May 2016 23:06:42 GMT Why Venezuela Could Be on the Brink of Collapse http://implode-explode.com/viewnews/2016-05-19_WhyVenezuelaCouldBeontheBrinkofCollapse.html iehi-feed-59828 Thu, 19 May 2016 17:34:59 GMT Greek Pipeline Breakthrough To Challenge Russian Gas Dominance In Europe http://implode-explode.com/viewnews/2016-05-19_GreekPipelineBreakthroughToChallengeRussianGasDominanceInEurope.html The Trans-Adriatic Pipeline (TAP) will connect the Caspian Sea to European markets, providing Europe with another large source of natural gas that will help the continent diversify away from Russia... The pipeline projects are part of what is often referred to as the "Southern Corridor" for European gas. For years Europe has pressed for a gas pipeline through the southern corridor that would offer it an alternative to Russian gas.

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And back when Nabucco was in vogue, Russia pushed hard for its own route through Southern Europe. The so-called South Stream Pipeline would have sent Russian gas beneath the Black Sea to Bulgaria. European regulators worked hard to derail that pipeline on anti-competition grounds.

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From the perspective of the U.S. government, TAP will reduce Europe's dependence on and vulnerability to Russia; in essence, it is a major geopolitical victory. U.S. Secretary of State John Kerry, in a congratulatory letter to Greece's Prime Minister, said that TAP is a "prime example of infrastructure that enhances European energy security."

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iehi-feed-59823 Thu, 19 May 2016 03:17:53 GMT Abenomics has over-promised and under-delivered http://implode-explode.com/viewnews/2016-05-18_Abenomicshasoverpromisedandunderdelivered.html iehi-feed-59805 Tue, 17 May 2016 00:38:09 GMT ‘Brexit' Vote Worries European Up-and-Comers Lured to Britain http://implode-explode.com/viewnews/2016-05-16_BrexitVoteWorriesEuropeanUpandComersLuredtoBritain.html If Britain votes out, three-quarters of citizens from other European Union countries who are working in the country would not meet current visa requirements for overseas workers, according to a report by the Migration Observatory at Oxford University. The impact would be greatest for workers in agriculture and the hospitality industry, it said.

There are concerns that London in particular would suffer if the flow of skilled immigrants fell. About a million European Union citizens from other countries work in London, a city of more than 8.5 million people.

Young Europeans interviewed for this article said they were worried that they may no longer be able to live and work in Britain. Entrepreneurs, many of whom flocked to London because of the relative ease of creating start-ups, said they were concerned that they may have to put their business plans on hold.

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Rose Carey, the head of immigration at Charles Russell Speechlys, a global law firm based in London, said she had seen an "unprecedented amount" of applications for British citizenship in the last few months... She said she did not expect the government to just kick out all the European nationals living here, but to "put in place transitional arrangements to protect the people who are already here."

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That the referendum is taking place at all has deeply offended many Londoners from other European countries, who are not allowed to vote and feel they have contributed a great deal to the life of a deeply international city.

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iehi-feed-59800 Mon, 16 May 2016 13:51:21 GMT Goldman Surprised by Sudden Oil-Market Turn as Glut Vanishes http://implode-explode.com/viewnews/2016-05-16_GoldmanSurprisedbySuddenOilMarketTurnasGlutVanishes.html The unexpected outages caused by everything from wildfires in Canada to pipeline attacks in Nigeria will keep production below demand through the second half of this year, according to Goldman. Still, the return of some output and higher-than-expected volumes from the U.S., the North Sea, Iraq and Iran mean the shortfall will be 400,000 barrels a day rather than the 900,000 previously predicted, it said. A return to surplus production is seen in early 2017.

"The physical rebalancing of the oil market has finally started," Goldman said. The bank raised its U.S. crude price forecast for the second half of 2016 to $50 a barrel from $45 estimated in March. It cut its forecast for the first quarter of 2017 to $45 from $55, but sees oil at $60 by the end of that year. The bank expects global demand to grow by 1.4 million barrels a day in 2016, versus 1.2 million predicted previously.

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Goldman's expectation for a return to a production surplus in 2017 reflects the view that low-cost suppliers such as Saudi Arabia, Kuwait, the United Arab Emirates and Russia will continue to drive output growth, the bank said.

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iehi-feed-59794 Sun, 15 May 2016 13:59:30 GMT Moody's downgrades Saudi Arabia credit rating over oil price slump http://implode-explode.com/viewnews/2016-05-15_MoodysdowngradesSaudiArabiacreditratingoveroilpriceslump.html iehi-feed-59782 Sat, 14 May 2016 14:17:46 GMT U.S. energy bankruptcy wave surges despite recovering oil prices http://implode-explode.com/viewnews/2016-05-14_USenergybankruptcywavesurgesdespiterecoveringoilprices.html iehi-feed-59759 Fri, 13 May 2016 01:10:46 GMT Venezuela Boils Over With Shortages, Desperation Crimes http://implode-explode.com/viewnews/2016-05-12_VenezuelaBoilsOverWithShortagesDesperationCrimes.html iehi-feed-59729 Sun, 08 May 2016 21:20:20 GMT Saudi shake-up rolls on with big reshuffle of economic posts http://implode-explode.com/viewnews/2016-05-08_Saudishakeuprollsonwithbigreshuffleofeconomicposts.html Saudi Arabia's King Salman on Saturday replaced his veteran oil minister and restructured some big ministries in a major reshuffle apparently intended to support a wide-ranging economic reform programme unveiled last week.

The most eye-catching move was the creation of a new Energy, Industry and Natural Resources Ministry under Khaled al-Falih, chairman of the state oil company Aramco. He replaces the 80-year-old oil minister Ali al-Naimi, in charge of energy policy at the world's biggest oil exporter since 1995.

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iehi-feed-59702 Thu, 05 May 2016 00:53:13 GMT Wells Fargo problem loans jump 62 percent, driven by energy http://implode-explode.com/viewnews/2016-05-04_WellsFargoproblemloansjump62percentdrivenbyenergy.html iehi-feed-59679 Mon, 02 May 2016 14:42:00 GMT Venezuela is Collapsing http://implode-explode.com/viewnews/2016-05-02_VenezuelaisCollapsing.html Venezuela, a country of 30 million that despite holding the world's largest oil reserves has descended into a dystopia where food, medicine, water and electric power are critically scarce. Riots and looting broke out in several blacked-out cities last week, forcing the deployment of troops. A nation that 35 years ago was the richest in Latin America is now appealing to its neighbors for humanitarian deliveries to prevent epidemics and hunger.

The regime that fostered this nightmare, headed by Hugo Chávez until his death in 2013, is on the way out: It cannot survive the economic crisis and mass discontent it has created. The question is whether the change will come relatively peacefully or through an upheaval that could turn Venezuela into a failed state and destabilize much of the region around it.

Remarkably, most of the Western hemisphere is studiously ignoring this meltdown. The Obama administration and Washington's Latin America watchers are obsessed with the president's pet project, the opening to Cuba. As it happens, the Castros turned Venezuela into a satellite state, seeding its security forces and intelligence services with agents. Yet now that it is decreasingly able to supply discounted oil to its revolutionary mentor, Venezuela appears to have become an afterthought even in Havana.

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Most of all, however, Venezuelans hope for U.S. leadership in pushing Maduro to accept an election. Said Vecchio: "The moment has arrived when you can no longer ignore this. Because what happens in Venezuela is going to affect the whole region.''

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iehi-feed-59659 Fri, 29 Apr 2016 03:23:49 GMT Exxon Mobil Loses 'AAA' Rating It Held Since Depression http://implode-explode.com/viewnews/2016-04-28_ExxonMobilLosesAAARatingItHeldSinceDepression.html iehi-feed-59623 Sun, 24 Apr 2016 00:32:14 GMT Greece's debt crisis looks familiar, but consequences may be worse http://implode-explode.com/viewnews/2016-04-23_Greecesdebtcrisislooksfamiliarbutconsequencesmaybeworse.html In fact, last summer's deal was less a cure-all for Greece's economic woes than a collective kicking of the can down the road. It avoided default by loaning Athens €13bn very quickly in exchange for a narrowly focused set of pension and tax reforms.

Even then, much of the heavy lifting was put off until the new programme's first quarterly review -- including the politically combustible issue of debt relief. As if to underline how ephemeral the deal was, the International Monetary Fund made clear it was not participating and would put off any decision on whether to join until it was certain Mr Tsipras, who had become the first leader of a developed country to default on an IMF payment, would live up to his commitments.

That first quarterly review has now stretched into two additional quarters, and the three-dimensional stand-off between Athens, Berlin and the IMF has only deepened.

While the IMF has demanded a restructuring of Greece's debts, Germany has suddenly decided that no debt relief is needed at all. Still, it has insisted the IMF participate anyway.

Meanwhile, the IMF has decided the agreement reached in July was badly constructed and should have lower budget surplus targets.

As for Mr Tsipras, he has returned to an angry, defensive crouch, railing against outside forces.

There is little political capacity in Athens to push through additional reforms or spending cuts even if Mr Tsipras wanted to.

"Europe's politicians have been distracted with other challenges and markets have become complacent about the inherent risks in Greece's new bailout," said Mujtaba Rahman, head of European analysis at the Eurasia Group risk consultancy. "But if Berlin doesn't revise its approach, this is going to blow up in everyone's faces."

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iehi-feed-59621 Sat, 23 Apr 2016 17:27:29 GMT Oil Megaprojects Dreamed Up a Decade Ago Still Coming Online, Limiting Production Decline http://implode-explode.com/viewnews/2016-04-23_OilMegaprojectsDreamedUpaDecadeAgoStillComingOnlineLimitingProdu.html iehi-feed-59617 Sat, 23 Apr 2016 17:01:24 GMT US-Saudi: Yesteryear days are gone forever http://implode-explode.com/viewnews/2016-04-23_USSaudiYesteryeardaysaregoneforever.html iehi-feed-59594 Wed, 20 Apr 2016 15:55:10 GMT Saudi $10 Billion Financial District Is Missing One Thing: Banks http://implode-explode.com/viewnews/2016-04-20_Saudi10BillionFinancialDistrictIsMissingOneThingBanks.html Not a single financial institution has agreed to take space in the 73 buildings the state is constructing at the King Abdullah Financial District, according to Waleed Aleisa, chief executive officer and project manager of the district at developer Al Ra'idah... "Saudi banks want to own their own buildings and want to pay as little as possible," Aliesa said in an interview. "They don't appreciate the brand as much as we see in the West, where banks will pay a premium to be in financial hubs."

As Saudi Arabia prepares for a post-oil future by boosting other industries, its plan to strengthen Riyadh's position as a financial center is plagued with delays, cost overruns and a failure to understand the needs of local banks, according to Aliesa. Attracting financial clients now will be challenging given that the work, about 70 percent finished, has largely ground to a halt and the developer is considering replacing the main contractor.''

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iehi-feed-59586 Tue, 19 Apr 2016 16:59:10 GMT Is Dilma's Impeachment Actually a Coup? http://implode-explode.com/viewnews/2016-04-19_IsDilmasImpeachmentActuallyaCoup.html iehi-feed-59584 Mon, 18 Apr 2016 19:59:46 GMT Forget Doha - Soaring oil demand in China to Rescue OPEC? http://implode-explode.com/viewnews/2016-04-18_ForgetDohaSoaringoildemandinChinatoRescueOPEC.html