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Colorado Drillers Fuel Record Oil Output in Rush to Finish Wells

Booming oil production in Colorado is fueling record output in the Niobrara basin that spans four states. The number of drilled-but-uncompleted wells in the shale play plunged in June as producers — spared of the same pipeline constraints that have dogged other parts of the nation — ramped up activity. The tally of so-called DUCs dropped by 42 from May, falling for the fifth straight month, according to the Energy Information Administration’s Drilling Productivity Report. While the DUC count includes both oil and gas walls, the drop is a testament ...

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European Union: 2018 country-specific recommendations on economic, employment and fiscal policies

The Council concluded this year’s ‘European Semester’ exercise, the annual monitoring process aimed at ensuring economic convergence and stability in the EU. The Council issued its 2018 recommendations and opinions to member states’ on their economic, employment and fiscal policies. The recommendations had been endorsed by the European Council in June. The overall objective of this year’s recommendations is to encourage member states to use the current favourable economic momentum to further strengthen the resilience of their economies. The European Semester involves simultaneous monitoring of the member states’ economic, employment ...

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Citi Says Trump ‘Brutal’ on Trade But Sees Deals by Midterms

After U.S. moves on global trade policy that have shredded decades of trust, watch out for deals to be struck before the midterm elections in November, Citigroup Inc. said, flagging a potential rebound in commodity prices toward the year-end that’s aided by still-robust fundamentals. “U.S. trade actions have been brutal and unilateral and have punctured the trust built up over decades of good-faith agreements,” the bank said in a quarterly commodities outlook, describing President Donald Trump’s policies as neo-mercantilist. “Our base case is for negotiations to continue and for trade ...

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Hong Kong should be worried about the US-China trade war. Here’s why

When journalists pressed Hong Kong’s trade and finance secretaries last week on how Hong Kong will be affected by the onset of the trade war between the United States and China, both ducked. They were right to do so – the trade war has only just been launched, few of the tariffs are yet in place and precise impacts are unclear. We do not know exactly what the retaliations will be, nor the counter retaliations. Nor how long they will fight. For economies like ours, caught in the crossfire, estimating ...

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China Hears Rumbles of Company Discontent in Rare Open Session

The ink had barely dried on the first joint statement between China and the European Union in three years before the complaints began. Following a rare decision to allow reporters inside a session with business leaders in Beijing on Monday, Chinese Premier Li Keqiang heard unfiltered comments from senior EU officials about the everyday reality for Europeans of conducting commerce in China. EU Trade Commissioner Cecilia Malmstrom, who is responsible for negotiations to resolve a dispute with the U.S. over metal tariffs, pointed to a decline in EU investments in ...

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China’s Cooling Economy Spells Trouble Ahead for Global Growth

Confirmation that China’s economy is slowing amid an escalating trade war is a worrying omen for global growth. Data released since Friday has affirmed what’s been expected for some time: That an ongoing campaign to curtail credit is putting the brakes on the world’s second-largest economy. Given that China generates as much as a third of global growth, that’s adding to signs that the best world expansion in years is plateauing. The International Monetary Fund, which has repeatedly warned that the trade spat between the U.S. and China will reverberate ...

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U.S. launches five WTO challenges to retaliatory tariffs

The United States launched five separate World Trade Organization dispute actions challenging retaliatory tariffs imposed by China, the European Union, Canada, Mexico and Turkey following U.S. duties on steel and aluminium. U.S. Trade Representative Robert Lighthizer said in a statement that the retaliatory tariffs on up to a combined $28.5 billion (21.54 billion pounds) worth of U.S. exports are illegal under WTO rules. “These tariffs appear to breach each WTO member’s commitments under the WTO Agreement,” Lighthizer said. “The United States will take all necessary actions to protect our interests, ...

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Southeast Asia’s Growth Could Be the Trade War’s Next Casualty

For Southeast Asia’s biggest economies, 2018 wasn’t supposed to be like this. If a widening trade war wasn’t enough to contend with, a global wave of policy tightening, strong oil prices and domestic politics are also weighing on growth prospects for the region. Policy makers are rewriting economic strategies as volatility surges, in some cases putting greater emphasis on currency stability or even structural changes. “With trade war risks now materializing, this suggests stronger headwinds for exports,” said Tamara Henderson, an economist at Bloomberg Economics in Singapore. “Investment, already buffeted ...

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China Cozies Up to EU as Trade Spat With U.S. Escalates

China courted the European Union as an ally in its trade conflict with the U.S., offering to improve access for foreign companies and work with the EU on reforming the World Trade Organization. At an annual summit on Monday, China gave EU leaders much of what they were looking for. Both sides committed to setting up a working group to look at a WTO revamp, made headway in reaching an investment treaty and pledged to cooperate on enforcing the Paris accord on climate change. Chinese Premier Li Keqiang along with ...

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China GDP growth slows to low end of Beijing’s ‘comfort zone’ and Trump may drag it down further

China’s economy has clung to the lower end of its growth range of the last three years, slowing to 6.7 per cent for the second quarter as exporters brace for bruises from US tariffs. The rate was down from the 6.8 per cent in the first three months of the year and at the lower end of 6.7-6.9 per cent range posted every quarter since the end of June 2015, according to data released by the National Bureau of Statistics (NBS) on Monday. But the rate is still within Beijing’s ...

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Trade War Imperils World Growth as IMF Sees ‘Complacent’ Markets

Escalating trade tensions are threatening to derail a global upswing that’s already losing momentum amid weaker-than-expected growth in Europe and Japan as financial markets seem complacent to the mounting risks, the International Monetary Fund warned. The IMF kept is global forecast unchanged Monday in the latest update to its Global Economic Outlook. The world economy will grow 3.9 percent this year and next, said the Washington-based fund. The pace this year would be the fastest since 2011. But cracks are forming in the growth picture. The global expansion is becoming ...

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China Shifts Gears to Support Economic Growth Amid Trade Conflict With U.S.

Fall-offs in factory output and investment in buildings, machinery and such are weighing on China’s growth, complicating Beijing’s task in managing the world’s second-largest economy amid a trade conflict with the U.S. The Chinese economy clocked a 6.7% expansion rate in the second quarter from a year earlier, down slightly from 6.8% in the January-March period, the statistics bureau reported Monday. While that rate is within Chinese leaders’ comfort zone, some economists said more troubling are the drop-offs in business activity and domestic demand. Industrial output rose 6% in June ...

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EU pushes China on trade, saying it could open up if it wanted

China could open its economy if it wished, European Commission President Jean-Claude Juncker said on Monday, with the European Union calling on countries to avoid a trade war even as pressure mounts on Beijing over its industrial policies. Playing host to Juncker and European Council President Donald Tusk, Chinese Premier Li Keqiang stressed the need to uphold free trade and multilateralism as the United States and China become increasingly mired in a trade dispute, with no sign of negotiations on the horizon. U.S. President Donald Trump has warned he may ...

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IMF warns U.S. vulnerable in escalating trade fight

The International Monetary Fund warned on Monday that escalating and sustained trade conflicts are increasingly likely, threatening to derail economic recovery and depress medium-term growth prospects. The IMF, in an update to its World Economic Outlook growth forecasts, said that the United States, as the focus of retaliatory tariffs from trading partners, was especially vulnerable to a slowdown in its exports. An escalation of tariffs to levels threatened by the United States, China and other countries would not only have a direct effect on demand, but would heighten uncertainty and ...

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U.S. Import Prices Fell in June

Prices for goods imported into the U.S. decreased in June, the Labor Department said Friday. Here are the report’s key takeaways: –Import prices dropped 0.4% in June from the previous month. The monthly fall comes after a sharp rise in May. Unlike other price measures produced by the government, import prices are not seasonally adjusted. June’s monthly decline fell short of the flat reading forecast by economists surveyed by The Wall Street Journal. –Oil prices helped pull down overall import prices. The cost of petroleum imports fell 0.8% on the ...

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