The International Monetary Fund has been in talks with the Ukraine regarding a $17.5 billion bailout. That bailout was in jeopardy due to rampant corruption among those in Ukraine’s capital of Kiev. This week, after sharp warnings from the IMF, the Ukraine has vowed to pursue reforms aimed at cleaning up its corruption problems.
President Muhammadu Buhari has approved a measure that consolidates state bank accounts under the central bank, according to Reuters. The move not only reduces the amount of borrowing, but also hampers graft and corruption by allowing the government to keep a watchful eye on the treasury. Nigeria is an oil-producing nation that has suffered immensely due to lower oil prices, forcing the government to make reforms.
William White is a senior adviser to the Organization for Economic Cooperation and Development (OECD), and heads the OECD’s Economic and Development Review Committee. He is making waves with a recent, fairly scathing, critique of various nations’ central banks. According to White, Central banks’ excessively liberal monetary policies are putting the global economy at risk, and he wants things to change.
More job openings are being posted as companies look for new workers, yet job growth in the private sector remains weak and wholesale goods sales begin to decline. The Department of Labor saw 5.6 million job openings in the month of December, versus expectations of 5.4 and 5.3 in November. The 4.9% rise month over month in job openings is above the historic growth rate, while the total number of job openings remains far above the post-recession average.
Equity markets struggled Monday amidst two reports pointing to a sluggish and weakening job market in America. U.S. nonfarm payrolls rose by just 151,000 versus expectations of 190,000 in January, according to a report by the Bureau of Labor Statistics (BLS). The weakness was broad based and was reflected in weak labor force participation, which remained little changed at 62.7%, according to data compiled by the BLS.
Recent data reveals that Malaysian exports for December grew slower than analyst predicted they would due to weaker commodity demand on the world market, according to Reuters. Natural gas output dropped as well, but experts believe government policy and higher domestic demand could compensate for lacking exports. The government also adjusted its budget late last month in recognition of lower oil prices.
Japan and Iran have entered into a bilateral investment treaty and an agreement for a $10 billion debt guarantee for Iran. The move could create an enormous inflow of Japanese investment in the Middle Eastern nation. The Japanese Ministry of Economy, Trade, and Industry and Japan’s Minister for Foreign Affairs, Fumio Kishida, approved the agreement.
These officials welcomed the signing of the investment treaty, and feel the $10 billion debt guarantee will allow Japanese companies to invest without significant risk.
President Barack Obama announced a plan to implement a fee oil companies would pay to fund investments in alternative energies. The plan would impose a $10 fee on every barrel of oil paid by oil companies, which would be “gradually phased in over five years,” according to the White House.
The Mongolian government approved a deal with Canada-based Centerra Gold Inc. to mine gold reserves in the Gatsurt Gold region, according to Reuters. The deal stipulates that Centerra hold 66% equity in the region, while the government retains 34% equity. Mongolia aims to bring in additional revenue this year after suffering a meager growth rate of around 3.0% in 2015.
A dispute before the World Trade Organization (WTO) has surprised many; India has appealed a ruling by the WTO and now seeks a compromise in a dispute regarding domestic content requirements for the nation’s solar panel programs. The dispute has caused a number of companies in India’s renewable energy industry to halt expansion until a resolution can be reached.
