Category: News Desk

Federal Reserve Stays Dovish on U.S. Strength as Bundesbank Warns of QE Failure


Interest rates may not rise in 2015 as the Federal Reserve indicates it will be more patient before making its first rate hike since the global financial crisis of 2008.

The Federal Open Market Committee said in a statement Wednesday that it “can be patient in beginning to normalize the stance of monetary policy,” a signal that many analysts had been expecting that falling oil costs caused inflation to become a minor concern for the policymakers. 

Coastal Bangladesh – Agriculture and Ship Salvaging


One of the most promising economies in the world today, Bangladesh has a host of positive statistics and numbers including:

* In 2014, gross income per capita reached $1,190

* Bangladesh ranks number 140 out of 177 countries for development and it is moving higher

* The rate of population growth is currently at 1.39% a year

Russia Interest Rate Hike, Falling Oil, Bring U.S. Equity Uncertainty


U.S. stocks saw an unusual day of price swings Tuesday as investors mulled the significance of an interest rate hike in Russia and falling oil prices.

U.S. equities fell, rose, and fell again on Tuesday as traders assessed the significance of a falling Russian ruble, which fell over 6% Tuesday morning. The Russian currency saw so much increased volatility that some retail brokers halted trading of the ruble against the U.S. dollar, as fears of illiquidity mounted. Brokerage FXCM was one of the firms to suspend USD/RUB trading.

October UK Trade Deficit reaches a 7 Month Low


In a positive turn of events for the recovering UK economy, the trade deficit fell to a 7-month low at the end of October. The goods deficit decreased from £2.8bn in September to £2bn in September, while exports rose £200mln to £24.3bln in October. The increase in exports and the decrease in oil imports were major factors.

U.S. Industrial Production Surges amid Cheap Energy


Industrial production surged to its highest level since 2010 in November after three solid months of gains.  Industrial production rose 5.2% year-over-year in November and manufacturing rose 4.8% year-over-year, signaling continued confidence in the economy from the industrial sector.

Russia Raises Interest Rates to Fight Burgeoning Inflation


Reeling under unforgiving inflation forced Russia to increase the country’s key interest rate to 10.5%, which is one percentage point higher than the current interest rate. This is the second time in the last couple of months that Russia’s Central Bank has had to take such a measure.  Note that just six weeks back, interest rates increased from 8% to 9.5%, shocking consumers.

American Consumer Sentiment Rises Despite Net Worth Pinch


American consumers are the most confident in their purchasing power since January 2007, thanks to falling oil prices and an improving domestic job market.

On a backdrop of falling bond yields, deflationary risks, and falling stock prices, American consumers are feeling decidedly upbeat. The Thomson Reuters and University of Michigan preliminary December Consumer Sentiment index rose to 93.8, up 5.6% from the prior month and above economists’ expectations. Falling gasoline prices and unemployment claims, which are at their lowest since 2000, are helping Americans spend more.

Global Markets React in the Wake of China’s Rate Cut


In a move that has taken the world economy by surprise, China has cut its interest rates, something that has not happened since November of 2012.  In an announcement made by the People’s Bank of China, the one-year deposit rates are now lower by 25 basis points (bp) and the one-year benchmark rates of lending are lower by 40 bp.

The Week in Review: Equity Volatility, Falling Oil, GDP Revisions


Globally, stocks slid while American stocks oscillated between gains and losses as investors assessed the impact that cheap oil will have on global markets.

U.S. GDP Upgraded on Falling Oil, Rising Dollar


Stronger demand for services could drive the United States GDP growth rate higher, causing many investment banks to turn bullish just as U.S. stocks see a wide selloff.

Service industry revenue rose 5% year-over-year in the third quarter of 2014, far above analysts’ expectations. Economists are attributing the surprise surge to greater discretionary purchasing power amongst American consumers as oil prices fall. The news caused analysts at JP Morgan to upgrade GDP expectations from 4.3% to 4.4%, while Barclays raised their expectation from 4.1% to 4.2%.