Turkey’s central bank cuts rates to boost weary economy

ISTANBUL: Turkey’s central bank cut its policy rate by 325 basis points to 16.5 percent on Thursday, delivering its second aggressive policy easing in less than two months as it seeks to boost a recession-hit economy and forget last year’s currency crisis.

The bank cited a recent decline in inflation and a global shift to easier monetary policy as it lowered its benchmark one-week repo rate from 19.75 percent, marking its latest step away from the emergency settings adopted last year.

The policy rate stood at 24 percent as recently as July, when the bank slashed interest rates by 425 points in its first policy change since the depths of the crisis, which tipped the largest economy in the Middle East into recession.

“At this point the current monetary policy stance, to a large part, is considered to be consistent with the projected disinflation path,” the bank said in a statement.

The “inflation outlook continued to improve” and in August “displayed a significant fall,” it added.

The Turkish lira lost some 30 percent of its value against the dollar last year and inflation soared to a 15-year high above 25 percent. Inflation has since eased to 15 percent and is expected to fall briefly to single digits in October thanks to the “base effect” measurement against last year’s spike.

The drop in inflation and a shift among the world’s major central banks to more accommodation has stemmed further losses in the lira and paved the way for rate cuts, set to continue until the year’s end.

The lira firmed to 5.6825 against the dollar after the announcement from 5.75 beforehand, and was up about 1 percent on the day.

According to a Reuters poll on Tuesday, economists expected the bank to lower rates by a median of 250 basis points. However before the decision, swap-market traders were expecting a cut of between 300 and 400 points.

The central bank’s governor, Murat Uysal, apponted in early July after his predecessor did not follow policy instructions, has said policy will aim to deliver a “reasonable” real interest rate.

Turkey’s President Recep Tayyip Erdogan is a self-described “enemy” of high interest rates and has said they, along with inflation, would fall to single digits soon.

On Thursday, the central bank said a “cautious” policy stance was necessary to keep the “disinflation process on track.” It added that inflation will likely slide “slightly below” its year-end forecast of 13.9 percent, which it made in July.

Ankara has attempted to boost lending by state banks to reinvigorate an economy that entered a recession last year and experienced contractions in the first two quarters of this year.</s>Eurozone industrial production rose more than in expected in December, while gross domestic product growth for the fourth quarter was in line with expectations, according to data released by Eurostat on Wednesday. Industrial production was up 0.4% on the month in December, beating expectations for a 0.2% jump but down from a 1.3% increase in November. The production of durable goods rose 2.7%, while the production of intermediate goods and energy was up 1.4% and 1.3%, respectively, and ...</s>BRUSSELS (dpa-AFX) - The euro area economy grew at a slightly slower pace in the fourth quarter, flash estimate published by Eurostat, showed Wednesday. 



Gross domestic product climbed 0.6 percent sequentially, following third quarter's 0.7 percent expansion. The rate came in line with the preliminary flash estimate published on January 30. 



On a yearly basis, GDP growth eased slightly to 2.7 percent from 2.8 percent in the preceding period. The annual rate also matched previous estimate. 



Over the whole year 2017, GDP grew 2.5 percent. 



In a separate communique, Eurostat said industrial production rose 0.4 percent in December from November, when it climbed 1.3 percent. 



Production of durable consumer goods increased 2.7 percent, and output of intermediate goods and energy rose 1.4 percent and 1.3 percent, respectively. 



Non-durable consumer goods output gained moderately by 0.7 percent, while capital goods output slid 1.1 percent. 



On a yearly basis, growth in industrial output accelerated to 5.2 percent from 3.7 percent in the previous month.



Copyright RTT News/dpa-AFX</s>TOKYO (dpa-AFX) - Japan's industrial production grew more than initially estimated in December, latest figures from the Ministry of Economy, Trade and Industry showed Thursday.



Industrial production advanced a seasonally adjusted 2.9 percent month-over-month in December, faster than the 2.7 percent rise reported earlier. 



In November, production had grown at a stable rate of 0.5 percent.



Shipments also increased 2.9 percent over the month, revised up from a 2.7 percent gain estimated initially.



At the same time, inventories dropped 0.3 percent, just below the 0.4 percent fall seen in the flash data.



On a yearly basis, industrial production growth eased to 2.1 percent in December from 3.0 percent in November. 



Data also showed that capacity utilization rose 2.8 percent monthly in December after remaining flat in the preceding month.



Copyright RTT News/dpa-AFX</s>Gold supply plateaued last year. Global mine output rose just a paltry 5.7 tons in 2017, according to data compiled by the World Gold Council. That represented the smallest increase since 2008.

The 2008 dip in gold production was something of an anomaly. The 2% decline in production that year was primarily a result of the financial crisis. Last year’s drop in production in the midst of a what has been touted as a strengthening global economic recovery and rising gold prices raises eyebrows.

Mine production in 2016 was also roughly equal to 2015. In other words, we’re seeing a trend of plateauing production levels.

More significantly, Chinese mine production dropped by a record 9% in 2017. The only other time output has fallen in China was 1980. The country accounts for 15% of the world’s total gold production.

Much of China’s gold stays in the country to feed the world’s largest gold market. Even as production dropped off, gold consumption in China grew9.41% in 2017, according to information released by the China Gold Association. As a result, Chinese gold companies are seeking out overseas acquisitions. For example, according to the Financial Times, Shandong Gold agreed to buy 50% of Barrick Gold’s Veladero mine in Argentina for $960 million last year.

According to the FT, tighter government regulation led to the closure of many smaller mines in China. The government has also upped resources taxes, further squeezing production.

But the production drop in China is part of a broader worldwide trend. As we reported last month, South Africa could run out of gold within four decades. Analysts say that at current production levels, South Africa has only 39 years of accessible gold reserves remaining. This could be another sign the world is approaching, or has reached, “peak gold.”

Peak gold is the point where the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s. During the Denver Gold Forum last September, the World Gold Council chairman said he thinks the world may have already reached that point.

Randall Oliphant anticipated last year’s dropoff in production, saying last fall that in the near-term, production is likely to plateau at best, before slowly declining as demand rises, especially given global political risks and robust purchases by consumers in India and China

In 2016, Mining.com analyzed the data and concluded there are no more easy gold discoveries. In fact, the number of major gold discoveries is shrinking.

Others have talked about Peak Gold over the last several years. In September 2014, Chuck Jeannes announced that he believed the world will reach “peak gold” either in 2015 or 2016. Last April, Goldman Sachs analysts predicted gold production would peak in 2015, saying there are “only 20 years of known mineable reserves of gold and diamonds.”

Of course, technology advances and new discoveries make predicting peak gold an imprecise science, but plateauing production numbers do lend some credibility to those predicting declining output in the future.

When we look at the future of gold, it’s easy to get caught up in the latest geopolitical turmoil or the most recent policy pronouncement by the Federal Reserve. Of course, these events in the news cycle are important. But investors should never lose sight of the most basic fundamentals – supply and demand. The gold industry may well be entering a long-term — and possibly irreversible — period of less available gold. As mining companies find it more difficult to pull gold out of the earth, it will mean less gold for refiners to produce for the consumer market. Remember, gold gets its value from its scarcity.</s>BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Euro area continued its expansion at the end of 2017, as previously estimated, taking the full-year growth to a decade-high.



Gross domestic product climbed 0.6 percent sequentially, following third quarter's 0.7 percent expansion. The rate came in line with the preliminary flash estimate published on January 30. 



On a yearly basis, GDP growth eased slightly to 2.7 percent from 2.8 percent in the preceding period. The annual rate also matched the previous estimate. No breakdown of data is currently available from the statistical office. 



For the whole year 2017, GDP grew 2.5 percent, the fastest in a decade. 



Largely driven by foreign demand, Germany's GDP grew 0.6 percent sequentially in the fourth quarter, but slightly slower than the 0.7 percent expansion seen in the third quarter. 



Despite a slowdown in Germany, it was the major factor for euro area growth. Spain also expanded strongly, by 0.7 percent, but slower than the preceding three month's 0.8 percent expansion. 



On the other hand, France, Dutch and Portugal posted faster growth. France's growth improved to 0.6 percent on foreign demand. 



Dutch GDP growth doubled to 0.8 percent from 0.4 percent. Portugal's growth came in at 0.7 percent, up from 0.5 percent a quarter ago. 



Italy's logged a weaker growth of 0.3 percent following third quarter's 0.4 percent expansion. 



Citing stronger cyclical momentum in Europe and better-than-expected pick-up in global economic activity and trade, the EU had raised its growth projection for the euro area to 2.3 percent in 2018 from 2.1 percent. 



Likewise, the forecast for next year was upgraded to 2 percent from 1.9 percent. 



In a separate release, Eurostat said industrial production grew for the third consecutive month in December. Industrial production rose 0.4 percent from November, when it climbed 1.3 percent. 



An acceleration in industrial production growth was not enough to prevent a slight slowdown in eurozone GDP growth in the fourth quarter, Stephen Brown, an economist at Capital Economics, said. Nevertheless, the economic outlook is bright.



Copyright RTT News/dpa-AFX</s>BRUSSELS (dpa-AFX) - Hungary's industrial production growth improved as initially estimated in December, latest figures from the Hungarian Central Statistical Office showed Tuesday.



The volume of industrial production climbed a working-day-adjusted 4.5 percent year-over-year in December, faster than the 3.6 percent rise in November.



That was in line with the flash data published on February 7.



Without adjustment, the volume of industrial production dropped 0.5 percent in December from a year ago.



On a monthly basis, industrial production rebounded 1.2 percent in December, after a 2.1 percent fall in the prior month. The preliminary estimate was confirmed.



Copyright RTT News/dpa-AFX</s>BRUSSELS (dpa-AFX) - At 5.00 am ET Wednesday, Eurostat is slated to release euro area GDP and industrial production data. GDP is seen expanding 0.6 percent, in line with flash estimate.



Ahead of the data, the euro traded mixed against its major rivals. While the euro rose against the pound and the franc, it held steady against the yen. Against the greenback, it dropped.



The euro was worth 1.2355 against the greenback, 132.80 against the yen, 1.1550 against the franc and 0.8907 against the pound as of 4:55 am ET.



Copyright RTT News/dpa-AFX</s>While all sacks are created equal in a game book or on a stat sheet, not all of them really are when you look at why and how each one happened. Throughout the offseason I plan on looking at each of 56 sacks the Pittsburgh Steelers defense registered during the 2017 regular season and attempt to contextualize each of them. This process should help identify which defensive players are earning their sacks more than others.

We’ll continue on with this series of posts by looking at and contextualizing the one sack that Steelers safety Sean Davis registered during the 2017 season.

Sack #1 – Week 17 vs. Browns – 1Q – 3-16-CLV 16 – (9:21) (Shotgun) D.Kizer sacked at CLV 4 for -12 yards (S.Davis) – TIME 5.30 seconds

Davis’ lone sack of the 2017 season came in week 17 against the Cleveland Browns and was essentially a coverage-related one. On this 3rd and very long play in the first quarter, Davis initially starts the play off by covering the tight end on his side. Once the tight end doesn’t release initially and the Steelers front begins to pressure Browns rookie quarterback DeShone Kizer, Davis easily has access around the edge and successfully completes the sack. Initially a three-vertical play with all three running past the chains, Kizer doesn’t have an open man to throw to until his tight end releases. He should have dumped the football off to the tight end to his right.

Summary: There’s not really a lot to summarize when it comes to Davis as a pass rusher as it’s not something he does a whole lot of during the season. With that said, Davis has missed a few sacks so far during his young career due to his failure to keep his body under control and ultimately wrap up quarterbacks. This trait coincides with his propensity to miss tackles in the second and third levels of the field. Davis must become a better all-around tackle starting in 2018.

Contextualizing The Steelers 2017 Sack Production: OLB Bud Dupree

 Contextualizing The Steelers 2017 Sack Production: OLB Anthony Chickillo

 Contextualizing The Steelers 2017 Sack Production: OLB James Harrison

 Contextualizing The Steelers 2017 Sack Production: DE Tyson Alualu

 Contextualizing The Steelers 2017 Sack Production: DE L.T. Walton

 Contextualizing The Steelers 2017 Sack Production: DE Stephon Tuitt

 Contextualizing The Steelers 2017 Sack Production: NT Javon Hargrave

 Contextualizing The Steelers 2017 Sack Production: OLB T.J. Watt

 Contextualizing The Steelers 2017 Sack Production: ILB L.J. Fort

 Contextualizing The Steelers 2017 Sack Production: CB Mike Hilton

 Contextualizing The Steelers 2017 Sack Production: ILB Sean Spence

 Contextualizing The Steelers 2017 Sack Production: CB Joe Haden

 Contextualizing The Steelers 2017 Sack Production: ILB Vince Williams</s>BRUSSELS (dpa-AFX) - At 5.00 am ET Wednesday, Eurostat has released euro area GDP and industrial production data. After these data, the euro changed little against its major rivals. 



The euro was worth 1.2353 against the greenback, 132.75 against the yen, 1.1547 against the franc and 0.8902 against the pound around 5:02 am ET.



Copyright RTT News/dpa-AFX
Eurozone GDP rises by 2.5% in 2017, a pace not seen since 2007, and industrial production is up 5.2% year-on-year. The production of durable consumer goods is up 7.4% and capital goods, indicating investments, are up 7.6%.