New Zealand's central bank maintains target interest rate 0.25%, 16 more U.S. energy companies file for bankruptcy protection

In Daily Market Review, English
August 13, 2020

New Zealand’s central bank maintains target interest rate 0.25%
The Bank of New Zealand announced after the interest rate meeting to maintain the benchmark interest rate unchanged at 0.25%, in line with market expectations. However, at the same time, the scale of the Large Scale Asset Purchase Program (LSAP) has been expanded from 60 billion to 100 billion New Zealand dollars. The central bank statement stated that the impact of the new crown virus epidemic on the global economy will continue, and the global and local economic outlook remains highly uncertain. Local social restrictions have also been re-implemented. The uncertainty will undermine household and corporate spending intentions, leaving basic economic forecasts with downside risks.

16 more U.S. energy companies file for bankruptcy protection
The latest report issued by a major US law firm showed that 16 more local energy companies filed for bankruptcy protection in July. Since the oil price plummeted in March this year, more than 50 local oil and gas companies have filed for bankruptcy protection. Among them, about 29 companies are engaged in shale oil exploration and exploitation. The data shows that the current oil price of about US$40 is still lower than the level of profitability of most shale oil producers also further explains why the oil consortium is willing to relax production cuts at the oil price level of US$40.

 

—————————————————————

Z. com Bullion is an affiliate of GMO Financial Holdings, Inc., a Japanese listed group. The risk of loss in leveraged foreign exchange trading & margin trading can be substantial. Visit the company website to read full risk warning. https://bullion.z.com/en/about/legal/risk/

場外式黃金/白銀交易的風險:
Service relating to Over-the-counter (OTC) Gold Bullion/Silver trading is provided by MOL. OTC Gold/Silver Bullion trading carries a high degree of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. OTC Gold/Silver Bullion is not regulated by the Securities and Futures Commission (""SFC"") and therefore trading OTC Gold/Silver Bullion will not be subject to rules or regulations promulgated by the SFC. Before deciding to trade OTC Gold/Silver Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain losses in excess of your deposited fund or even more in extreme circumstances and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading OTC Gold/Silver Bullion, and seek advice from an independent financial advisor if you require.