Markets Archives - Page 380 of 731

Zimbabwe Undergoes Cash Crunch as Economy Struggles

Central bank governor John Mangudya urged Zimbabweans to limit cash usage as the nation’s cash shortage grew worse this week, according to New Zimbabwe. Zimbabwe discarded its defunct currency in 2009 in response to hyperinflation, and additional provisions prevented the central bank from printing the Zimbabwe dollar.

Zimbabwe switched to the U.S. dollar as one of its main currencies, but the economy is running out of American dollars. In response to the cash crunch, the government has limited bank withdraws and shut down some ATMs.

GDP Outlook Slashed as Trade Deficit Widens, Job Openings Fall

The Federal Reserve has again cut its growth outlook for the American economy as multiple signs of weakness come from numerous independent reports. The Atlanta Federal Reserve’s GDPNow cut its outlook to 0.4% growth in the first quarter of 2016, the third cut that has seen growth expectations more than halve. That is far below economists’ consensus expectations of 1.9% growth, and is indicative of the GDPNow model’s reliance on real-time data and larger data sets.

Helpful Transport Projects Stuck in Australia’s Slow Lane

Governments should open up their transport project funding decisions to greater scrutiny, including tabling an independent cost-benefit analysis in Parliament, recommends a new report from think-tank the Grattan Institute.

The Complexities of Vietnam’s Reform Path

In late January 2016, the Vietnamese Communist Party (VCP) held its 12th National Congress to select leaders and set policy guidelines for the next five years. Although every VCP congress is a time of intense power struggles, the 12th Congress was especially partisan. Never before has politics in Vietnam been so reduced to the choice between two individuals.

Fed Hints at Higher Interest Rates Soon

The Federal Reserve is urging Americans to prepare for higher interest rates that will impact almost all debts, including student loans, mortgages, and credit cards. Despite interpretations of a dovish Janet Yellen after last week’s remarks that the Federal Reserve would remain patient and pace its interest rate hikes in accordance with data, a more recent speech from the Fed is chastising investors for not preparing themselves for higher interest rates.

The ‘Nine-Dash Line’ and…Fishing?

Western and Asian governments and commentators have pilloried the Chinese government for its inscrutability on the so-called ‘nine-dash line’ in the South China Sea. Because the nine-dash line allegedly lacks a basis in international law as reflected in the United Nations Convention on the Law of the Sea (UNCLOS), they have hectored China to clarify the line’s meaning and to derive all maritime claims from the textual provisions of the Convention.

U.S. Economy Surges on Higher Incomes, Manufacturing Data

Both incomes and manufacturing activity are growing in America, leading to hopes that the economic recovery is finally here. Wage growth surged in March as 215,000 new jobs were created in the month, according to the Bureau of Labor Statistics. While the unemployment rate unexpectedly rose to 5%, jobs were gained “in retail trade, construction, and health care.”

The increase in total jobs and a shift towards job growth in higher paid industries helped wages, which were up 2.3% on a year-over-year basis in March.

U.S. Home Prices Continue to Rise

American house prices are continuing to rise at a pace described by one economist as “unsustainable.” Two indices of home prices showed a sharp increase in prices throughout America, with gains beating inflation in just about every major metropolitan area in the country. According to the S&P Case-Shiller Home Price Index, home prices rose 5.1% in the 10-city composite, while the 20-city composite—, which covers a broader swathe of medium-sized cities—saw a 5.7% year-over-year gain.

IMF Suggests Ways for Australia to Make 80-Fold Return on Its Investment

The International Monetary Fund (IMF) has an enticing suggestion for Australia. If it wants a solid way to make an 80-fold return on its investment, it needs to invest $1 billion a year on tax breaks for corporate research and development (R&D). This suggestion was part of a study recently conducted by the IMF.

Should the JSE Be Worried about a New Rival?

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