Category: News Desk

IMF Policy Change Applies Pressure to Force Deal between Ukraine and Russia


The International Monetary Fund (IMF) flexed its considerable economic muscle this week to force a resolution in ongoing disputes between the Ukraine and Russia simply by changing its lending policies. Per the IMF, Ukraine will have to negotiate in “good faith” with Russia to resolve a dispute over a $3 billion bond due this month. Otherwise, the IMF will not allow a loan from the International Monetary Fund to the Ukraine.

U.S. Unemployment Claims Rise


After recent confidence on the labor market from the Federal Reserve and Department of Labor, new data shows unemployment may have started an upswing.

The Department of Labor reported that weekly initial unemployment claims rose to 282,000 in the week ending December 5, an increase of 4.4 percent from the previous week. That drove the four-week moving average for initial unemployment claims above 270,000, above expectations from most economists.

Puerto Rico Governor Petitions Congress for Bankruptcy


Governor Alejandro Garcia Padilla begged the U.S. congress to pass a law allowing the territory to file bankruptcy, according to AFP. Puerto Rico owes more than $70 billion to creditors, and the governor maintains that bankruptcy will prove necessary to restructure bonds and avert political instability.

The governor urges Congress to permit the Caribbean island to file bankruptcy by the end of December, but President Obama and members of Congress remain resistant to the idea. The government concedes that Puerto Rico is in for another lost decade if the status quo continues.

China Speeds Up Investment Pact Negotiations in EU to Compete with US


China has been in negotiations with the European Union for some time regarding an investment pact. However, those negotiations have accelerated of late, and it appears this traces back to the government’s desire to counter American influence in this region, and to block many more favorable investment treaties for the United States. To that end, the once intractable China has now signaled a desire to make compromises to facilitate a final investment pact early next year.

Outstanding Mortgage Debt Rises for First Time Since 2009


Total mortgage debt owned by Americans rose for the first time this year after falling every year since 2009.

A new study by the Federal Reserve Bank of New York shows that real household mortgage debt outstanding rose from $8.66 trillion to $8.67 trillion from 2014 to 2015. Since this data ends in the second quarter of 2015, some analysts believe that outstanding mortgage debt will continuing to rise, and may see a strong increase in 2016 as more home-buying activity spurs the broader market.

Ghana Economy Set to Improve Next Year


Ghana’s economy will expand in 2016 due to increased oil revenues and budget planning, according to Reuters. The West African country will abide by a budget deficit goal set by the International Monetary Fund, and the upcoming 2016 elections will fall under a strict budget regimen. President John Mahama agreed to lower election spending in return for a loan of $1 billion from the IMF. The organization set a deficit goal of 5.3 percent GDP for 2016.

East Asians Getting Old before They Can Get Rich, World Bank Warns


China and other East Asian, middle-income countries face an interesting new quandary: they are getting old before they are getting rich. As a result, according to the World Bank, these nations must ask themselves how to overhaul their health care and pension systems to compensate.

Positive Manufacturing Forecast despite Slump


Although manufacturing activity contracted in November, experts see growth in the sector in 2016 as the U.S. economy improves.

The Institute for Supply Management announced Tuesday that it expects manufacturing to grow at a higher rate in 2016 than what we saw in 2015. Throughout the year, the ISM expects manufacturing revenue to rise by 4.1 percent, bolstered by stronger demand from consumers.

Venezuelan Socialists Voted Out during Mid-Term Elections


According to Venezuela’s National Election Council, the center-right Democratic Unity Roundtable gained 99 seats in the National Assembly, ending decades of socialist rule, according to BBC News. The opposition would ultimately need 116 seats in office to pass laws and call a referendum on President Nicolas Maduro’s political future. The president’s term limit ends in April 2019.

Greek Prime Minister: IMF Not Constructive in Greek Financial Crisis


Greek Prime Minister Alexis Tsipras has condemned the International Monetary Fund’s (IMF) recent behavior in dealing with the European Nation’s lingering financial woes. Tsipras accused the IMF of inconsistency with regard to whether it wanted to stay with a bailout program, and described its conduct as nonconstructive.