Category: News Desk

Brexit Aftermath: Markets, Politicians Respond


In the wake of last week’s surprise vote for Britain to leave the European Union (EU), markets, analysts, and politicians are springing to respond.

The British pound lost over 7% of its value almost instantly against the U.S. dollar, bringing the currency to its lowest point since 1985. The decline has significantly hurt British purchasing power for imported goods and services, but has also made British companies more competitive internationally; the economic impact of the change in currency remains uncertain.

French Labor Unrest Results in Numerous Arrests


French police arrested around 100 people shortly before Thursday’s labor reform protest march, according to BBC. Many French citizens remain upset over President Francois Hollande’s intention to loosen certain labor laws, such as allowing employers to fire employees when necessary, leeway in lowering wages and increasing the number of hours worked per week.

Hollande got into an office on a promise of instituting socialist policies, but later implemented pro-market measures meant to boost economic growth.

World Bank Will Help Mexicans Achieve Greater Financial Inclusion


In Mexico, less than half the population has a bank account (just 44%). In fact, 2.6% of the billion individuals around the world without bank accounts live in Mexico. Much of the population lacks any meaningful inclusion in the larger economy and is left out of the regulated financial system.

The World Bank fears this may be a huge drag on economic development for this Latin American nation, thus it has urged Mexico to reach for greater economic inclusion for its population.

Iran May Reach Oil Deal with Kurdistan


Iran and the Kurdistan Regional Government (KRG) are on the verge of solidifying a deal exporting up to 250,000 a day of oil to Tehran, according to Al Jazeera. KRG is an autonomous region of Iraq, and Iranian authorities stressed that the deal will not go through without approval from Baghdad. Turkey is a major recipient of KRG oil, but has made no comment about KRG-Iranian talks.

Economic Treaty: Russia and Japan May Formally End World War II Hostilities


It is a little known fact to many that Japan and Russia never formally entered into a peace treaty following World War II. The dispute has continued these many decades because the two countries still dispute the proper ownership of a chain of islands still held by Russia off Hokkaido.

U.S. Housing Data Disappoints


A number of studies point to growing weakness in America’s housing market.  Existing home sales grew just 1.8% in May, shy of analyst estimates. Just 5.53 million existing homes were sold in May, up slightly from April but below consensus estimates of 5.57 million units. On a year-over-year basis, existing home sales rose 4.5%.

Federal Reserve Asserts Negative Rate Authority


Negative interest rates may be coming to America.  A reality in Japan for years and a growing trend throughout Europe, negative interest rates on government bonds have wreaked havoc on financial markets and standard economic models of bond prices and monetary theory.

Negative interest rate policies, or NIRP, are intentional moves by Central Bankers to cause buyers of bonds to actually pay debtors for the privilege of lending them money.

Refugees Demand Compensation in Zambia after Xenophobic Attacks


Refugees are lobbying the Zambian government for speedy compensation after suffering attacks at the hands of xenophobic mobs, according to Anadolu Agency. Xenophobia is on the rise in Zambia due to a stagnant economy and ritualized killings, and many suspect that foreigners are behind the murders. Zambia has accepted an influx of refugees from neighboring countries undergoing political and economic turmoil.

IMF Praises Jamaica’s Recovery; Says Bold Reforms Still Needed


Jamaica suffered through decades of stagnant growth and growing debt. That said, Jamaica has finally found its way to economic growth and stability, and has made great progress according to a recent report by the International Monetary Fund (IMF).

Violence Erupts in Central African Republic (CAR): Aid Workers Attacked


Two people were killed in a hail of gunfire on Monday as religious conflicts between Christians and Muslims reached a boiling point, according to Reuters. The perpetrators came from Seleka, a Muslim rebel group that staged a coup in 2013 and persecuted the Christian population. President Faustin-Archange Touadera campaigned on a promise of fostering peace between Christians and Muslims, but has been unsuccessful thus far.