Category: News Desk

Rwandan President Seeks Controversial Third Term


President Paul Kagame seeks a third term in office after parliament approved an amendment to the constitution, according to Al Jazeera. Kagame has built a reputation as a reformer, but critics cite his authoritarian style of governance and human rights abuses as reasons he should leave office.

According to voting results, over 98 percent of Rwandans approved a measure allowing Kagame to remain in power after his official term ends in 2017. The changes in the constitution would allow the president to remain in power until 2034.

2016 Starts with a Whimper


Economic data proved so weak at the beginning of 2016 that global markets fell and China halted stock trading.  In China, the Caixin Purchasing Managers Index (PMI), released by Markit Economics, fell to 48.2 in December, down from 48.6 and indicating the tenth month in a row of a contraction in activity.

Nigeria Seeks IMF Assistance as Economy Struggles


The sting of low oil prices has forced Nigerian president Mahammadu Buhari to seek help from the International Monetary Fund, according to Reuters. The president plans to boost spending to stimulate the economy, but Nigeria will need help from the organization to do so. The government plans to borrow up to 900 billion naira to satisfy the deficit, and authorities aim to double the deficit to 2.2 trillion naira in 2016.

India Seeks Leadership Role on Behalf of WTO Developing Nations


India felt snubbed following the World Trade Organization’s talks in Nairobi in December, and the resulting decision to table Doha, so the country’s leaders have become much more vocal about WTO affairs than usual. In fact, reports have now surfaced that India seeks to lead a contingent of WTO member states from the developing world intent on having a greater voice in the organization’s affairs.

Investor Worries Carry Over to the New Year


As trading begins in 2016, investors fret over the trends in oil and equities that dominated the last two years.  U.S. equities ended 2015 with a 2.15 percent loss, as measured by the S&P 500 excluding dividends.

Both large cap stocks and small cap stocks underperformed the broader market, with the Dow Jones Industrial Average ending down 3.43 percent and the Russell 2000 losing 6.57 percent in 2015.

2015 In Review: Collapsing Oil, Weakening Housing, Flat Equities


As 2015 winds to a close, economists examine the major trends in the American economy, noting a combination of deflationary effects that point to weak demand and possible volatility in the New Year.

The biggest story of 2015 was a continuation of the prior year’s biggest story: the falling price of oil. WTI futures fell to $35 at the end of December, recovering slightly but failing to breach $37 by the end of the year. Meanwhile, natural gas futures also fell to $2.22, reflecting a similar decline of over half its value from normal ranges seen in 2013 and 2014.

Argentinean President Seeks Transparent Government


The government issued a “national statistical emergency” as President Mauricio Macri seeks to reform how Argentina gathers statistics in pursuit of an accurate depiction of the economy, according to AFP.

Critics maintain that former President Cristina Kirchner’s cabinet failed to put forth honest numbers, forcing the National Statistics and Census Institute to withhold data pertaining to such matters as poverty and GDP. Argentina received a censure in 2013, by the International Monetary Fund for discrepancies in GDP numbers when compared to third-party data.

IMF Chief Warns That Global Growth May Disappoint in 2016


As most people look forward with hope to the potential of a new year, the International Monetary Fund’s (IMF) Managing Director, Christine Lagarde, warned of a disappointing global economic outlook. 

U.S. Government Agencies Create New Mortgage Derivatives


Two mortgage firms largely under government control create a new financial instrument similar to those that caused the global financial crisis of 2008.  Fannie Mae and Freddie Mac, two mortgage loan companies that provide government-guaranteed mortgages to American homebuyers, announced a new financial instrument that it hopes would offset risks in the financial market.

Both firms, which are government-sponsored enterprises, are producing two new derivative instruments based on collected mortgages that will theoretically reduce risk to American taxpayers.

Saudi Arabia Makes Energy Cuts in Preparation for Lower Oil Prices


The Saudi monarchy plans to overproduce oil to maintain market-share, but the state will have to make cuts to compensate for the supply glut, according to Arabian Business. The government will lower government projects to 840 billion riyals in 2016, a step back from the 975 billion riyals seen from 2015, and it will slash 15 percent of the 2015 GDP. Authorities will also increase prices for such necessities as fuel and water.