Pros Say: No Return of the Commodity Supercycle
Oil prices were steady Tuesday, following a 7 percent rally the previous day, on further economic fears as Japan slipped into a deeper recession. GDP data showed the country's economy contracted at an even faster pace than originally estimated during the third quarter. CNBC's experts weigh in on the economic woes.
Return of the Commodity Supercycle?
Mark Matthews, chief Asia strategist at Merrill Lynch believes that commodity prices will not continue to tank as he thinks they have overshot to the downside. But it will not be the return of the commodity super-cycle, he tells CNBC.
OPEC May Slash Output by 3 Million Barrels
OPEC may cut oil output by as much as 3 million barrels a day, says John Licata, chief investment strategist at Blue Phoenix, ahead of the oil cartel's meeting on December 17.
Strong Consolidation from Oil Industry Coming?
2009 is going to be the year of M&A for the oil industry, according to Neil McMahon, senior research analyst at Sanford Bernstein.
A supercycle is possible, but not in the near term. McMahon sees oil regaining an upward momentum towards the end of 2009/beginning of 2010.
Integrated oil companies have outperformed the market both in Europe and the U.S. "quite significantly", especially Exxon Mobil and BP, McMahon told CNBC.
Worst Recession Since the 1970s
This may be the worst recession since 1970s as we have not seen this kind of economic conditions in the G7 since that time, says Callum Henderson, head of FX strategy at Standard Chartered Bank.
Japan's Economy Seen Contracting in 2009
Japan's GDP growth may contract by 0.7% in 2009, predicts Simon Wong, regional economist at Standard Chartered Bank. He gives his take on the health of the Japanese economy.
Expect the Yen to Weaken Soon
The yen could weaken next week as Euan McCreadie, senior corporate dealer at OzForex expects Japan's tankan report to be fairly negative.
BoJ May Cut Rates by 20 bps in 2009
Following Japan's worse-than-expected fall in third-quarter GDP, the BoJ may be forced to make a 20 basis point rate cut by March 2009, says Junko Nishioka, economist at RBS Securities in Japan.
Fiscal Packages Are a Zero-Sum Game
Fiscal packages don't work, they are a zero-sum game at best, says Roger Nightingale, strategist at Pointon York. He tells CNBC these plans will do more harm than good for the economy.
Implications of Obama's Push to Go Green
Obama's green push would disadvantage U.S. industries which are big energy users, such as steel, manufacturing and auto makers, says Alan Oxley, chairman of Australian Apec Study Centre at Monash University.
China Likely to Do More to Boost Growth
China is likely to announce additional policies to promote economic growth to safeguard employment growth, says Ha Jiming, chief economist from China International Capital Corp. He tells CNBC the possible measures that may be adopted.
Significant Yuan Depreciation Unlikely
China is unlikely to allow a large yuan depreciation as this will fuel protectionism from its trade partners, which could cause big capital outflows, Ha Jiming, chief economist from China International Capital Corp said.