Category: News Desk

Higher Oil Prices, Higher Inflation Expected in U.S.


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.

Niger President Faces Runoff in Controversial Election


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.

World Bank: Help Bangladesh Recover Stolen Money, Pursue NY Fed


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.

Uzbekistan Enhances Trade Ties with Pakistan to Improve Economy


Uzbekistan may enhance bi-lateral trade with Pakistan as a safeguard against lower commodity prices and a downtrodden world economy. Uzbekistan is a relatively new nation, which gained independence in 1991 and remains a developing nation. The economy enjoyed 8.0% GDP growth in 2015.

Uzbekistan and Pakistan have shared low trade volume throughout the years, and it remains to be seen if increased trade will benefit both nations. Uzbekistan is a top cotton producer, achieving 7.0% growth for agricultural products in 2015.

World Bank: Suggestions for China’s Expanding High-Speed Rail Development


China has developed the largest high-speed rail network in the world, a feat for which it should be rightly proud. Unfortunately, cutting-edge transportation technology is expensive to deploy and maintain.

A nation with the world’s second largest economy and single largest population needs to build additional high-speed rail to support its burgeoning infrastructure. As a result, China has asked the World Bank for suggestions on how it can finance further development.

The Week in Review: Markets Rejoice on Fed Decision as Economy Woes Worsen


Stock markets in Asia and Europe joined America’s market in celebrating Janet Yellen’s admission that the global economy is not doing so well.

The Federal Reserve announced on Wednesday that the central bank would not raise rates more than twice in 2016, and that it would target a 0.9% Federal funds rate by the end of the year. That is down from previous guidance of 1.4%, as the Fed also downgraded its GDP growth expectations for 2016.

Argentina Government Nears Settlement Deal with Creditors


Argentina’s lower congressional house approved a bond settlement with creditors, and President Mauricio Macri expects to win support in the Senate, according to Reuters. The government would pay over $4.65 billion to a group of investors who are determined to see a return of their money.

The president has attempted to attract investors and spur the economy by working with creditors, but he faces an uphill battle as political opponents may stall some of his market-oriented policies. The proposed settlement derives from a $100-billion bond default in 2002.

New IMF Debt Rules Draw Praise, Criticism


Bankruptcy is the procedure in the United States (and many other nations) that allows a debtor who is no longer able to pay back a debt to come to some form of resolution with his or her creditors, typically allowing for a different repayment term or the discharge (or erasure) of some or all of the debt. In fact, every country has some similar process. When addressing international debts between nations, however, no such procedures exist.

U.S. Unemployment Levels Crater, But Income Growth, Demand Remain Elusive


Unemployment levels have fallen to less than 7% in all 50 states, but demand for goods and services remains weak as incomes refuse to grow.

A new report by the Bureau of Labor Statistics found that unemployment fell in 28 states from December to January 2016, while non-farm payroll employment rose in 30 states and Washington D.C. The improvements helped the U.S. headline unemployment rate, which fell 0.8% from a year ago to 4.9%.

Kenya Granted Standby Credit with IMF in Case of Economic Turbulence


Kenyan officials obtained a $1.5 billion credit line with the International Monetary Fund (IMF) as a safeguard against drastic economic downfall, according to Reuters. The International Monetary Fund notes that such factors as diminished security, inclement weather, and unfavorable international markets could destabilize Kenya’s stable economy. The Kenyan shilling gained steady ground in 2016, and the economy achieved solid expansion in 2015.