Category: News Desk

Kenya and China Sign $5bn Infrastructure & Energy Deals


Kenya and China on Monday signed deals worth $5 billion to construct a new railway line and fund an energy project, with Kenyan President Uhuru Kenyatta calling the deals a “massive boost” to the East African nation.

The money would be spent on energy projects, a standard gauge railway linking the port of Mombasa to border town of Malaba, meant to provide faster access from Kenya’s port to markets in the region, the presidency’s media service said in a statement on Monday.

India’s Economic Troubles “Overplayed”, Says World Bank Chief Economist


The gloom and doom surrounding India’s economic crisis has been “overplayed”, said chief economist at the World Bank Kaushik Basu on Monday, dismissing rumours that that India will need to seek a line of credit from the International Monetary Fund to help fix the economy.

Fed Calls On US Banks To Improve Capital Buffers


The Federal Reserve warned on Monday that some of the country’s largest banks still fall short in areas critical to risk management and capital planning, raising speculation that banks could be pushed to increase their capital or curtail dividends and share buybacks to satisfy regulators.

JPMorgan Hit By Bribery Probe Over China Hiring Practices


JPMorgan Chase is being investigated by U.S. authorities over claims that the investment bank hired children of influential Chinese officials to secure business advantages in the Mainland, the New York Times reported on Saturday.

Citing a confidential United States government document, the Times said a bribery investigation had been opened to study the allegations.

Key Economic News To Watch This Week: August 19


This week: The United Kingdom releases a new estimate of second quarter GDP results; The U.S. and South Korea hold joint military drills intended to help “ensure stability and security on the peninsula and reaffirm the U.S. commitment to the north-east Asia region”; Kenya President Uhuru Kenyatta begins a six-day visit to China.

Monday, August 19

China ‘Faked’ More Than $1 Trillion In Economic Data: Study


China’s actual GDP size could be $1 trillion less than what the government claims it to be, said a professor from the HSBC Business School at Peking University this week, arguing that the government had deliberately manipulated housing price data between 2000 and 2011 in order to produce lower inflation results.

Asia Struggling To End Poverty Despite Rapid Economic Growth: Study


More than 660 million people in Asia still live in extreme poverty despite the region’s recent economic gains, revealed a new study by the Asian Development Bank (ADB) on Thursday, highlighting the need for Asian states to make growth more inclusive.

Where iPhone Is Made: A Surprising Report on How Much of Apple's Smartphone is US-manufactured

Infographic: Is American Manufacturing Dying Or Specialising?


70 million iPhones were sold in 2011 and not one of them was made in the USA. Why does Apple prefer to keep their production offshore? Contrary to popular belief, the top reason for outsourcing is the productivity gains achieved, followed by cost savings. Did you know that it only takes 15 days to hire 8, 700 engineers in China to manage 200,000 factory workers, while in the U.S. the process could go for as long as nine months?

Russia To Shut Schools Amid Slump In Birthrate


Russia plans to close more than 700 schools this year because of a slump in the number of school-going children, according to a Wednesday report by the AFP, as the country, sometimes known as the Dying Bear, struggles to a halt a steep decline in population since the collapse of communism.

Eurozone Close To End Of 18-Month Double-Dip Recession


Official figures from Brussels are expected to show on Wednesday a return to modest growth in the second quarter, ending a recession that has gripped the eurozone since late 2011.

On Wednesday, official data is expected to show that economic growth among the 17 countries that use the euro climbed 0.2 percent in the quarter.