Each week QFINANCE will endeavor to bring you some of the biggest news stories from the past five days in finance and business, as well as some of the most fascinating websites and links that have crossed our path. We hope you'll enjoy reading, we hope you'll have a great weekend and we hope that you'll come back each Friday to brush up on your finance and business knowledge.
Monday June 6
Dominique Strauss-Kahn pleads not guilty to the charges against him, which state that on May 14 he tried to rape a maid in his suite at Manhattan’s Sofitel Hotel. He could end up in prison for a maximum of 25 years from seven criminal charges, which he pleaded not guilty to. Strauss-Kahn’s next court date was set for July 18.
Read about Dominique Strauss-Kahn in more depth here.
Tuesday June 7
A report published by the International Energy Agency (IEA) stated that demand for gas could be greater than that for coal by 2030, and five years later the demand for oil. The IEA claimed that this was down to the uncertain future of nuclear energy, as well as the ample supplies of gas and the robust emerging markets. The report suggested that the most likely leaders within this powerful growth would be China and the US, with China promoting cleaner forms of fuel in the coming years and claims that 60% of the US’s coal power plants are to be retired in the next twenty years. The IEA commented that this could be a “golden age of gas”.
Read about the demand for oil in more depth here.
Wednesday June 8
After Iran rallied five member countries to block Saudi Arabia’s bid to increase production quotas of oil, Opec defied commonly-held expectations that it would increase output, sending Brent crude up by more than $2. The coalition, marshaled by Iran, defeated a plan by Opec to add one and a half million barrels per day to the club’s output, taking action at a meeting of oil ministers in Vienna. The Opec secretary-general, Abdalla El-Badri, denied that this would cause a crisis on the oil market, saying “We have enough stocks, we have enough supply in the market. There is no shortage.”
Read about Opec, Saudi Arabia and Iran in more depth here.
Thursday June 9
After days of debates between officials from the governing socialist party and parliamentary deputies, Greece finally agreed to a four-year austerity plan that will be voted through parliament this month. The move comes with the imminent arrival of the country’s second economic bail-out in 13 months by the IMF and the EU. The session of the country’s political council claimed to have taken eight hours. Details of the measures are yet to be announced, something which has added to anxiety regarding the Panhellenic Socialist Movement’s commitment to transparency.
Read about the Greek austerity plan in more depth here.
Friday June 10
After many months of deliberation, the EU Parliament has voted to put a Tobin, or so-called ‘Robin Hood’ tax, on all financial transactions that pass through the City in an attempt to boost Brussels’ budget by five per cent. This move has sparked condemnation from industry groups, including the Association for Financial Markets in Europe (AFME), whose chief executive, Simon Lewis, claims that it is coming round at the same time as several other “significant new taxes or levies already being introduced by individual member states”. The tax, which aims to raise an additional €200bn (or £172bn) for EU parliamentary spending from 2014, would levy a 0.05 per cent free on the total value of “every type of financial transaction” going through any institution in Europe. Although the tax still requires member states’ consent through the European Council to become law, this vote shows the support for the tax and that there will no doubt now be pressure on the European Commission to look at ways of imposing the tax. There are claims that some of the revenue created by the tax will be put into combating poverty and climate change.
Read about the Tobin tax in more depth here.
Tags: "golden age of gas" , Abdalla El-Badri , AFME , Association for Financial Markets in Europe , bail out , Brent crude , Brussels , business and finance news , business news , China , demand for oil , Dominique Strauss-Kahn , EU , European Council , European Union , finance and business news , finance news , Greece , IEA , IMF , International Energy Agency , International Monetary Fund , Iran , not guilty , OPEC , Panhellenic Socialist Movement , pleads not guilty , Robin Hood tax , Saudi Arabia , Simon Lewis , Sofitel , Strauss-Kahn , Tobin , Tobin tax , US