MarketLine Blog

Posts written by Mohammed Iqbal

New potential OPEC-Russia deal to cut oil production levels: Other producers likely to boost supply in case of such a deal

MarketLine

The steep decline in the price of crude oil that began in the latter half of 2014 and reached its lowest point in early 2016 caused great disruption in countries for which oil exports constitute a major portion of total exports. Countries in this group include the OPEC nations as well as other major non-OPEC oil producers like Russia, Brazil and Canada. In December 2016, a Saudi led OPEC effort was finally able to come to an agreement with Russia and several other oil producers in the region such as… Read more

Car manufacturing sector booming in the UK: Weaker pound boosts exports, yet Brexit worries persist

MarketLine

2017 has been a good year for the UK car manufacturing sector as far as production levels are concerned, with the country manufacturing cars in March 2017 at a level last seen in the year 2000. Manufacturing levels have been boosted by a strong rise in exports of cars, which has come about due to the weak pound, low crude oil prices and rising demand for British cars in the Asia-Pacific region, as well as in the United States. However all of this has been happening among the backdrop of… Read more

Alitalia staff vote down latest cost cutting plan: Financial difficulties making the future of the company look increasingly uncertain

MarketLine

Alitalia has for many years now been a company incurring consecutive losses year after year. Historically the Italian government has stepped in during times of extreme financial difficulties to bail out the country’s flag carrier. However in 2014 it agreed to sell a 49% stake in the company to UAE based Etihad Airways, which subsequently invested significant resources into Alitalia in order to turn it into a profit making company. Disappointing results nevertheless have continued and Etihad’s attempts to get the company to reduce costs by lowering wages and reducing… Read more

Iranian aviation industry will witness strong growth post removal of sanctions: Threat of renewed sanctions under Trump presidency nevertheless persist.

MarketLine

After decades of sanctions, the US government under Obama announced in early 2016 that it was lifting sanctions on Iran, due to the latter’s compliance with the IAEA over its nuclear programme. One of the strongest beneficiaries of this removal of US led western sanctions on Iran seems to be the Iranian aviation industry, which in recent months has concluded billion dollar deals with major aircraft producers such as Boeing and Airbus, for the purchase of hundreds of planes. The deal with Boeing alone is said to go as far… Read more

Australia’s mining sector returning to strong growth: Increasing commodity prices and stabilizing export markets boost the sector

MarketLine

The Australian mining sector is said to have witnessed a boom from 2003 onwards, as demand from China, Japan and other major Asian markets surged as a consequence of strong growth. Simultaneously this strong demand boosted commodity prices, resulting in large profits for the Australian mining sector. However as growth in the Australian mining sector’s largest export market China has decelerated in recent years and fears of stronger decreases in the future emerged, the Australian mining sector has taken a hit. Another major export market Japan too suffered financial instability… Read more

House prices in Sweden witness steep growth: Strong demand will continue pushing prices up even further

MarketLine

The Swedish housing market has witnessed a steep increase in prices in recent years, and this is the consequence of the supply of new houses not meeting the present and increasing demand for accommodation. A major reason for the increase in demand for buying property is that renting property has become increasingly difficult due to scarcity, especially for younger adults entering the property market for the first time. With record low interest rates currently being offered by banks, many Swedes have therefore taken on mortgages in order to purchase properties,… Read more