Category: News Desk

Could interest rates rise in the wake of a proposed Federal Reserve rule?


The Federal Reserve announced a proposed change to its forward guidance that could cause bond rates to rise in the United States sooner than expected.

Boston Federal Reserve President Eric Rosengren said that the Federal Reserve may choose to cease forward guidance on monetary policy for market participants, which would allow the central bank to raise the Federal Funds Rate from its historic low of 0.25%. That rate has remained unchanged since it was lowered after the global financial crisis in 2008-2009.

The rest of Europe shouldn’t look to Germany as an economic savior


As France continues to stagnate economically because of socialism and high taxes, and Italy falls back into an increasingly worrying recession, the international community is often looking to Germany as a savior for the Euro. With Portugal and Greece struggling to stay on their feet, it’s common to hear economists preaching about how the south of Europe could learn a lot on public debt and governance from their German neighbors.

Optimistic outlook for small business and a sharp rise in job openings


Job openings rose 22% year over year in July, according to a new report by the Bureau of Labor Statistics. A total of 4.7 million job openings were posted in July, compared to 3.8 million in July 2013 and 4.7 million in June.

The number of job openings has risen sharply in 2014 after slumping slightly in February on cold weather, a sign that businesses are investing more heavily for growing demand in the U.S. economy. Private industry jobs grew 22% year over year to 4.2 million, while government job openings rose 26% in the same period to 485,000.

Israel’s economic growth could be facing an abrupt end


For over a decade, Israel’s economy has managed to withstand the global financial crisis that has brought other countries to their knees, whilst weathering various military conflicts at the same time. Despite all of the factors that could have brought Israel down, the economic growth hasn’t struggled much, nor has the flow of foreign investment. However, that could be about to change. Experts suggest that the strength of Israel’s economic run, led by former finance minister Yuval Steinitz, could be facing an abrupt end, as the era of sustainably heavy growth steadily falls into history.

Interest rates in the U.S. likely to rise while money supply growth in China slows


Globally equities have fallen amidst fears that European quantitative easing will not be enough to counteract rising interest rates for U.S. Treasuries and falling money supply growth in China.

Potential new risks for New Zealand’s economy


In previous reports, New Zealand’s economy has largely been considered one of the safest economies after emerging from the Global financial crisis largely unscathed. However, economists are now beginning to suggest that the growth boom could be wearing off and state that New Zealand’s economy could be on the rocks, once temporary growth factors disappear. This could cause a significant slowdown for this island nation.

The surprising risks to European markets from Scottish independence


The British pound saw the heaviest losses in a year as all European equity indices fell as the looming vote for Scottish independence uncovers a hidden counter-trend to European unionization.

Zimbabwe’s economy threatened by plunging foreign investment


Foreign investment generated in Zimbabwe has fallen by more than fifty percent over the first six months of this year, according to the chief of the country’s central bank, John Mangudya. In comparison to the $165 million figure that was received throughout the same period in 2013, Zimbabwe only managed to gain $67m in investment this year. The policy considered by the government to return economic control to black Zimbabweans has been met by a degree of misunderstanding by foreign investors, according to Mangudya.

The Week in Review: Moderate Growth says the Fed, Disinflation in Europe


The Federal Reserve said that the U.S. economy did not see a significant change in its rate of growth in August, as the twelve regional Federal Reserve Districts all reported business ongoing but steady optimism about the rate of economic growth in their regions. The comments came in the Federal Reserve’s Beige Book report, released this Wednesday.

The South African economy narrowly avoids falling into a recession


The economy of South Africa has recently escaped recession within the second quarter of this year, although figures still show economic growth within the region to be relatively weak. Crippled, in particular, by the strike action that took place within the platinum sector for the initial half of 2014, real domestic product (GDP) has managed to grow by an increase of 0.6% on a seasonally adjusted, annualized, and quarter-on-quarter basis within the second quarter.