This is your World Wrap for October 27th, 2008.
We’re tracking coverage of world economies from CNBC Europe, ABC News, France 24 and the BBC.
CNBC Europe is following developments from Friday’s OPEC summit in Vienna.
The coalition of oil exporting countries agreed to address dramatic drops in oil prices. Their solution - cut production by 1.5 million barrels a day.
OPEC leaders talked about how their move relates to the global economic crisis.
Anchor 1: “There’s a lot of questions about where the fair price of oil is where the marginal cost of oil should be? For you sir, where do you need oil prices to be in order to make money out of it?”
Anchor 2: “I think we’re not in the position now to say what is the best price. Today what is our concern is how to balance the demand and supply. This is the most important. We produce for somebody to buy. And this is now the market is situation because we know the world is facing the worst economic crisis that I’ve seen in my life. So we have to cope with this changing in the world and see how the cohesion between the demand and the supply and the economic crisis.” (www.cnbc.com)
OPEC’s move came right before global stocks plummeted again on Monday.
Fear of a global recession, along with falling share prices, has put a strain on many national currencies.
ABC News in Australia reports on reasons behind the fallout of Asian markets and the Aussie dollar.
Anchor 1: “Experts like Hans C say there is a simple reason. “
Anchor 2: “If the world is going to slow down then the demand for commodity slows. So commodity prices are softening and I think that’s what’s driving that currency lower.”
Anchor1: “And while the Aussie dollar heads south so to do global stock markets. In Australia the all ordinaries index shed another 1.5 percent to its lowest close in four years while Japan’s Nikkei hit a 26-year low.”
Anchor 3: “Well its very much a contagion at the moment. The uncertainty, the fear, the selling, its just going from one country to another and there’s no signs that its stopping anytime soon.” (www.abc.net.au/news)
France 24 looked at those other countries, including the Ukraine and Hungary.
The two will become the first European nations to receive loans from the International Monetary Fund to prevent an economic collapse.
Anchor 1: “The list of countries hoping for the IMF’s help gets longer and longer. Bellerose, Pakistan, Argentina. More requests, sometimes exceeding 10 billion dollars.”
“Foreign investment has dried up, and the IMF’s money is now a last resort for countries that want to save themselves from economic disaster.” (www.france24.com)
And the BBC analyzes data that hints at recession in the UK.
British Prime Minister Gordon Brown talked about a global financial recession.
“We’re fighting this recession but we need other countries to work with us. And that’s what I’m also spending my time making sure other counties take the action that we’re taking to stop this becoming worse.” (www.bbc.co.uk)
And that was your World Wrap for Monday October 27th, 2008.
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