Category: News Desk

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.

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.