It may have taken 24 rounds of negotiations, but Chinese officials announced on Wednesday that a US-China bilateral investment treaty (BIT) is close to being signed. According to the Chinese Minister of Commerce, Chen Deming, many of the key stumbling blocks that have held up the deal may have been resolved. Chen’s statements came in an interview with China’s state-run Xinhua News Agency.
Disappointing manufacturing figures and weak retail sales data confirms that America’s economy is struggling, despite cheering from the Federal Reserve. Manufacturing rose slightly in March, but at a slower pace than in recent months. In addition, slower still since the financial crisis in 2009, according to a new study by Markit Economics.
According to the Markit Flash Purchasing Managers Index, which rose slightly to 51.3 in February, manufacturing activity is “well below the post-crisis average” of 54.1.
The government issued a nationwide audit that rooted out so-called “ghost worker” positions from the public sector, according to Reuters. The audit is in response to a wage system, which allows workers to register fake accounts to receive double or triple pay. President John Magufuli has pledged to reduce corruption throughout the government.
The Organization for Economic Cooperation and Development (OECD) has issued a dire warning to Poland and the European Union. According to the OECD, Poland risks breaching the EU’s fiscal deficit rules next year. The warning comes as the new populist government increases public spending to pay for social programs such as childcare, while simultaneously making politically popular (but financially ill-advised) tax cuts.
American home sales have collapsed despite low interest rates and the expectation of more expensive mortgages just around the corner. Existing home sales fell 7.1% in February, significantly below expectations. In total, a seasonally adjusted annual rate of 5.08 million home sales were seen in February, representing a modest 2.2% year-over-year increase from the same time a year ago.
Romanian officials condemned the European Union’s decision to uphold an Italian E. coli alert over Romanian sheep cheese, according to The New Zealand Herald. Instead, Romanian health officials stated that an alert should have been tailored to cow-based cheese that was made in Romania, dispelling broader claims made by Italian authorities. Romania relies heavily on sheep cheese exports, and roughly 20 tons of cheese had been removed from shelves because of the mistake.
On Monday, China agreed to Nepal’s proposal to build a strategic rail link between the two nations through Tibet. The new line will reduce Nepal’s dependence on India for shipping. The agreement was proposed and brokered by Nepal’s Prime Minister, K P Oli.
A perfect storm of rising oil prices and limited corporate profits is leading to higher inflation expectations for 2016. Oil prices have rebounded from their 2016 lows, rising to $38.95 a barrel on Monday morning trading. With higher oil, gas prices have already risen in the U.S., and higher prices are expected. Gas price averages have increased from their recent lows to top $2.00 per gallon, according to Gasbuddy.com, a gas price tracking company.
In February, incumbent President Mahamadou Issoufou failed to reach the necessary threshold for the second-round ballot process, leading to a runoff that took place on Sunday, according to the Associated Press. Officials flew primary opponent Hama Amadou to France to receive medical treatment.
On February 5, 2016, cyber-robbers made off with $81 million dollars (US) after successfully executing a series of transactions that traveled through the New York Federal Reserve Bank and moved money to accounts in Sri Lanka and the Philippines.
