Category: News Desk

Insurance Companies Become More Receptive to Myanmar


Burmese leaders plan to foster a more open economy as insurance companies help the enclosed Southeast Asian country open up to foreign companies, according to the Chicago Tribune. Various Japanese insurance companies and the Financial Services Agency are lending a helping hand to the government, and officials have established a regulatory body that will manage the insurance industry. Currently, Myanmar has an insurance market worth $40 million.

Ukraine Passes Budget, Additional Bailout Funds Possible


Ukraine’s parliament has finally approved a new budget for 2016. The budget was a compromise designed to satisfy demands of the International Monetary Fund (IMF) if Ukraine wanted to receive $17.5 billion in bailout funds, the distribution of which had been delayed pending the adoption of a conforming budget. The bailout funds were intended to help Ukraine escape a devastating economic recession.

Rising Oil, Spending Bolster U.S. Stocks


After a sharp decline at the beginning of the week, stocks surged strongly as rising oil prices and higher consumer spending indicate improvements for parts of the U.S. economy.  Inventories of U.S. crude fell, according to the U.S. Energy Information Administration.

A new study shows that crude inventories fell by 5.9 million barrels in the week ending December 18th, which constituted a far greater move than analysts had expected, as many predicted total inventories to see a small rise from the prior week.

Oil Prices Spike

Cash-Strapped Brazil Taps into Sovereign Wealth Fund


The Brazilian government withdrew $255 million from its sovereign wealth fund to finance public accounts, according to Newsmax. The fund was created in 2008 out of the commodities boom, but harder times forced authorities to withdraw money in 2012 to meet budget obligations. The latest withdraw comprised a third of the fund’s overall worth.

IMF Wary of Iran’s Return to Global Markets and Effect on Oil Prices


The International Monetary Fund (IMF) has turned a critical eye to Iran’s return to the international markets following years of economic sanctions that had cut it off from much of the rest of the world. In particular, resurgence in Iranian oil exports in 2016 could have dire consequences for crude oil prices, which have already sunk in price over the last year. According to the IMF, the surge of Iranian oil supply on the market could push down prices by as much as $5 to $15 a barrel.

U.S. Economy Slows in Q3 despite Lower Energy Costs


Real GDP rose 2 percent in the third quarter, after rising 3.9 percent in the second quarter, a sharp deceleration that analysts expected despite lower energy costs that have failed to stimulate personal consumption. According to the Bureau of Economic Analysis, the growth in GDP was partly due to a better-than-expected environment for investment, as inventories fell less than feared.

North Korea Faces Tough Road in 2016


North Korea may contend with a serious famine in 2016 due to a prolonged drought that failed to yield substantial crop production, according to UPI. Analysts predict that the government will have to make cuts to its nuclear program to foster economic reforms or make concessions to the international community in return for assistance, but there is a chance that leader Kim Jong-un may ramp up nuclear capabilities as the economy falters.

World Bank Finally Acknowledges Development Projects Displacing Local Populations


The World Bank has come under fire recently for policies and practices that many consider shortsighted and insensitive to the less fortunate. A glaring example involves the World Bank’s failure to provide oversight of development projects that force people from their lands and/or harm their means of making a living. However, after years of delay, the World Bank has announced that it will take action to address these social issues. 

Decade Low Oil Pressures Growth, Credit Markets


Oil prices plummeted to their lowest point in 11 years, prompting fears that energy companies will prove unable to pay back loans, which could cause rippling financial weakness throughout the global economy.  Brent crude oil prices fell to $36.52 during Monday trading in European markets, while global supplies, especially in the United States, remain at record high levels.

Spanish Parliament in Disarray after Elections


Prime Minister Mariano Rajoy’s center-right Popular Party endured a heavy blow over the weekend, falling short of the seats needed to govern accordingly, but still maintaining a majority, notes USA Today. The ruling government will have to share power with opposition parties, but the process will remain contentious, as incumbent officials must govern alongside leftist parties. King Felipe VI will act as broker and nominate a prime minister for approval by parliament.