Import prices drop
Import prices decrease by 2.8% from December, which is the largest fall since last 2008 according to Wall Street News. The prices dropped 8% since last January with the slump of oil price. The oil price tumbled about 40% comparing price in January last year. In addition to the oil price, the strength of dollar is another reason why people. Export prices decrease by 2% since last month which is also the biggest drop since 2011. One benefit is that companies importing materials from other countries can lower their cost while export companies are facing challenges with decrease in demand.
E.ON signs to import natural gas from US
E.ON, one of the largest energy companies, signs contracts with Gulf South Pipeline, a Texas-based company to import natural gas. E.ON signs contract with Mitsui O.S.K lines to ship about 800,000 tons of natural gas from US to Germany. The actions will help Germany to diversify its natural gas portfolio and reduce its on Russia by natural gas.
Global business optimism turns down
According to the Global Business Outlook Survey by Markit, a leading global diversified provider of financial information services, the number of companies expecting higher performance exceeded expecting lower performance by 28%, while the number was 39% six months ago. The business confidence decreased because investors fear increasing interest rate from countries like UK and US, and the dynamic economic situation in euro zone, pointed by Markit’s report.
Expedia and Orbitz agree to merge
Expedia and Orbitz Worldwide announced to merge on Thursday. The background is that online booking agencies now generate less revenues since most airline companies have their own booking systems and the commission paid by hotels have reduced from 21% to 16%. The deal will help Expedia to become the industry leader as well as Priceline Group.