Richest 1 per cent hold 48 per cent of global wealth report finds...

The wealth of the richest 80 people in the world doubled in cash terms between 2009 and last year, while the wealth of those in the bottom half fell in that time. In 2010, for example, it took 388 billionaires to equal the wealth of the bottom half of the world’s population; now it’s just 80 billionaires.

Business leaders and politicians land in the posh Alpine town of Davos, Switzerland, this week where global inequality and what to do about it will dominate discussions.

They meet as a new Oxfam report says that the richest 80 people in the world now have the same amount of wealth as the bottom 3.5 billion of the global population.

It’s not the only study flagging the dangers of the growing wealth gap; global organizations such as the International Monetary Fund and the Organization for Economic Co-operation and Development have repeatedly warned that inequality threatens not just the poor, but social cohesion and economic growth as a whole.

“The scale of global inequality is quite simply staggering,” Winnie Byanyima, executive director of Oxfam International, said in a statement. “Despite the issue shooting up the global agenda, the gap between the richest and the rest is widening fast.”

In the United States, President Barack Obama will give his annual State of the Union address on Tuesday January 20 2015 (tonight), where he is expected to address inequality – specifically wealth inequality – proposing a plan to raise $320-billion (U.S.) in the next decade by hiking capital-gains tax for wealthy Americans and closing loopholes to help finance tax cuts for the middle class.

The proposals have little chance of passing, given the Republican party’s control of Congress.

Source: The Globe

Consumer sentiment at its highest level in more than a decade,

SAMANTHA SUNNE

NEW YORK — Reuters

Brent crude spiked above $50 (U.S.) on Wednesday, boosted by the response to a bullish report on consumer sentiment, before paring gains on a strengthening dollar and broader global economic woes.

The University of Michigan released a report showing consumer sentiment at its highest level in more than a decade, thanks to low gasoline prices and job gains.

 While the report was definitely bullish, it was not enough to balance out the rest of the world’s diminishing demand, said energy economist James Williams at WTRG Economics.

“It doesn’t fix anything in Europe,” he said. “The world isn’t getting better.”

In China, the second-largest oil consumer, there were signs of weakness as the central bank announced new support measures after data showed a drop in bank lending and foreign investment growth falling to a two-year low.

The U.S. dollar index rose 0.54 per cent, which may have caused crude to fall back to early-morning levels, Williams said.

Brent crude futures for March rose 84 cents to $49.11 by 12:00 p.m. ET. WTI was trading up $1.24 at $47.49 a barrel.

Bob Yawger, director of energy futures at Mizuho Securities USA, partly attributed the gains to rising RBOB gasoline futures, which were up 2 per cent. “You see gas leading the crude oil to the upside,” he said.

The market was also responding positively to a report from the International Energy Agency (IEA), which said there were signs lower prices had begun to curb production in some areas, including North America.

“How low the market’s floor will be is anybody’s guess. But the sell-off is having an impact,” the IEA said in its monthly report on Friday. “A price recovery – barring any major disruption – may not be imminent, but signs are mounting that the tide will turn.

“A rebalancing may begin to occur in the second half of the year,” the agency added.

Analysts said Brent, which traded steadily above $48 before the IEA’s announcement, also had strong technical support.