News Desk

Davos Speakers Defend China, China Vows to Defend Stock Investors

Date: 22 January 2016

China served as a major topic of discussion and a primary source of concern at the World Economic Forum. However, several speakers went to great lengths to defend Asia’s largest economy and to point out that it is still moving toward strong growth and a “manageable” economic transition.

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China Likely to Seek Sanctions after Victory over the EU at WTO

Date: 22 January 2016

For years, the European Union (EU) has imposed tariffs on Chinese-made screws, nuts, and bolts made of either iron or steel. However, on Monday, China won an appeal in a seven-year legal battle before the World Trade Organization, which found that those tariffs are illegal. Although China has never before sought sanctions from the WTO, many believe the length of this battle may cause the trade giant to make a claim for compensation.

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Argentina Slowly Integrates Back Into World Community

Date: 22 January 2016

At the World Economic Forum, Argentine President Mauricio Macrimade positive headway with U.S. and European leaders, according to the Associated Press. Investors and the world community praise his reform approaches, such as slashing export taxes and lifting restrictions off the peso. The center-right president replaced leftist leader Christina Fernandez de Kirchner in December.

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Asia Crisis Deepens: Japan Enters Bear Market, China Yuan Threatened

Date: 21 January 2016

Japanese stocks officially entered a bear market on Wednesday and continue to see pressure, despite quantitative easing measures that propped up stocks in years past. The Japanese Topix index fell 3.7 percent in a day and lost over 20 percent of its value from its peak last summer. The Nikkei 225 fell a similar amount by the close, leading to an almost 14 percent year-to-date loss.

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Haze Deeply Cut Into Indonesian GDP, Says World Bank

Date: 21 January 2016

While forest fires may represent a common sight around the world, as is the damage they wreak, few regions have suffered more economic harm, as a percentage of GDP, than Indonesia did in 2015. Last year, Indonesia's fires cost the economy at least $16 billion. That amounts to 1.9 percent of Indonesia's gross domestic product (GDP), according to the World Bank.

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Indian Finance Minister Predicts Positive Annual Growth

Date: 21 January 2016

According to finance minister Arun Jaitley, India's economy may grow as much as 9.0 percent annually, but only under the right economic conditions, according to CNN Money. The South Asian country achieved significant growth in 2015, but it was held back due to such factors as a decline in the steel industry and a heavy monsoon season. India remains the fastest growing major market in the world, outgrowing China.

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U.S. Retail Sales, Economic Confidence Strengthen

Date: 20 January 2016

Retail sales enjoyed strong end-of-year gains, with e-commerce growing at a rapid rate. In total, retail sales in brick and mortar stores rose 3.1 percent year-over-year in December, according to a new study by the National Retail Federation.

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IMF Says Russia Will Remain in Recession until at Least 2017

Date: 20 January 2016

When oil prices began to decline in 2016, Russia's oil-dependent economy began to slump. Unfortunately, that slump does not appear to be righting itself very quickly, and may even deepen with the introduction of long embargoed Iranian oil to the market this year. As a result, the International Monetary Fund (IMF) has again slashed its forecast for Russia, downgrading it into an ongoing recession through the end of 2016 and beyond.

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Puerto Rico Presses for Debt Relief as Economy Unravels

Date: 20 January 2016

Secretary of the Treasury Jacob Lew will meet with Puerto Rican officials on Wednesday to address the island's mounting debt crisis. Puerto Rico has defaulted twice on its payments and it suffers with a high public debt of $72 billion, and the secretary hopes that the U.S. Congress will act by March of this year. The commonwealth's deficit expects to stretch from $14 billion to $16 billion in the coming five years.

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Houston Prepares for Economic Crisis

Date: 19 January 2016

Slowing home sales, falling property values, and growing unemployment are ringing alarm bells in oil-dependent Houston. Last week, the Houston Association of Realtors released a report showing that home sales are falling. In total, single-family home sales fell 2.4 percent on a year-over-year basis in 2014.

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Prefer Your Economy in the Shadows? Try Turkey, Mexico, or Estonia

Date: 19 January 2016

The Organization for Economic Cooperation and Development (OECD) recently released a study on the "unregistered economies" of its various member states. According to the study, the nation with the largest portion of its economy in the unregistered territory was Turkey, followed closely by Estonia and Mexico.

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Iranian Sanctions Lifted, Reform Unlikely

Date: 19 January 2016

The world community lifted Iranian sanctions upon discovery that Iran has abided by the terms of the nuclear deal, according to Business Insider. However, President Hassan Rouhani faces a tough road ahead with regard to economic reform, due to opposition from hardliners and Ayatollah Ali Khamenei. The Iranian economy suffers from declined living standards, rampant inflation and widespread youth unemployment.

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