Category: News Desk

Housing Market Weakness Stings Growth Optimism


Just as the U.S. Government and Federal Reserve are getting more optimistic about America’s growth prospects, new data shows the housing market may be topping out.

Pending home sales fell a shocking 3.7% in May, versus a 1.1% expectation and a sharp reversal from April’s 3.9% jump. The new study by the National Association of Realtors (NAR) saw pending home sales fall on a year-over-year basis for the first time since 2014, as tapped-out Americans struggle against persistent home price growth.

China and US May Be Heading Toward WTO Case over Steel Dumping and Tariffs


China and the United States are set to square off in a suit before the World Trade Organization (WTO) regarding a brewing dispute over steel imports. China, along with several other countries, has been exporting large quantities of corrosion-resistant steel to the United States at rates domestic producers cannot match. As a result, the US has raised tariffs and may take anti-dumping measures. Meanwhile, China has threatened suit if the US does this.

Libyan Prime Minister Calls for Unity against ISIS


Prime Minister-designate Fayez Al Sarraj has called on Libyan armies throughout the land to join the central state and combat Islamic State’s presence, according to Gulf News. ISIS entered Libya in 2011 after NATO-backed rebels ousted and murdered former leader Muammar Gaddafi. Libya’s economy has since collapsed as various factions compete for power.

U.S. Economic Growth Improves Despite Plummeting Corporate Profits


Corporations are making less money than they used to, but America’s economic growth gained a bit of ground earlier in the year.  Corporate profits fell 4.3% on a year-over-year basis in the first quarter, according to a new study by the Bureau of Economic Analysis (BEA). Meanwhile, taxes on corporate income rose by $4.4 billion, as a shift towards higher tax industries caused government inlays to improve.

Britain Loses AAA Rating


The United Kingdom (UK) joins the United States in losing its AAA credit rating from S&P.

The credit agency announced its downgrade of the UK on Monday, shortly after Moody’s cut the outlook on Britain’s economy. “In our opinion, this outcome is a seminal event, and will lead to a less predictable, stable, and effective policy framework in the U.K.,” the ratings agency said in a press release.

Ghana to Continue IMF Austerity Program


Ghana was drowning in debt just a few years ago. It still struggles with significant levels of existing debt, but has finally started to turn the corner thanks to an International Monetary Fund (IMF) austerity program. Ghana entered into a three-year program under the guidance of the IMF aimed at getting its economy back under control, and has announced that, despite early success, it will not quit its current program.

Brexit Vote and Domestic Hurdles Hamper South Korean Economy


South Korean officials contend that the Brexit vote will have a slight impact on the economy, according to The Hankyoreh. The government is also concerned about the U.S. Federal Reserve’s potential interest rate hike and troubles within the shipbuilding industry. The South Korean economy is also plagued by low exports, a weak job market/ and corruption.

American Economic Indicators Flash Red


A number of economic indicators released recently point to a weakening American economy.  Americans are buying fewer services, manufacturing activity is down, and America’s trade deficit—along with the rest of the world—is growing.

In June, services demand fell, according to a new study by Markit Economics. The Markit flash services Purchasing Managers Index (PMI) saw a slight increase to 51.3, which Markit calls a “subdued” increase from the prior month’s 51.2 reading.

IMF Praises Central Banks’ Responses to Brexit


There is no doubt that the United Kingdom’s (UK) exit from the European Union (EU) will have long-term economic consequences for the entire world. Friday’s response to the news that Britain voted to exit the EU (also known as “Brexit”), however, created an enormous market response.

Nigerian Militants Grow Bold as Oil Pipeline Damage Continues


Militant group Niger Delta Avengers have called for a referendum on the dissolution of Nigeria, according to ABC News. Niger Delta Avengers comprise of militants that attack oil pipelines to counter pollution and supposed exploitation on that part of the government and international oil companies. President Muhammadu Buhari has not responded to the referendum demand thus far.