Category: News Desk

US Battles China over Free-Trade Rules in Push for Trans-Pacific Partnership


Representatives from 12 nations in the Americas and the Asia-Pacific region are meeting in Hawaii this week to finalize negotiations for the Trans-Pacific Partnership (TPP). If all goes to plan, they may reach a deal by Friday. Many consider the proposed treaty to be one of the most important free trade agreements since the United States, Canada, and Mexico entered into the North American Free Trade Agreement (NAFTA) in 1994.

British Economy Making Comeback but Challenges Loom


British GDP shot up 0.7 percent in the second quarter, improving upon 0.4-percent growth seen in the first quarter. Factory output faltered during the second quarter, and a stronger currency is hurting the export sector.

Data from the Office for National Statistics further showed that Britain is increasingly relying on domestic demand to sustain the economy. Analysts also expect domestic demand to remain strong, as wage increases allow more people to pour money into the economy. Inflation is also down, and more firms show a willingness to invest again.

China Stock Crash Instills Fear, Uncertainty


Chinese stocks posted their largest drop in eight years as the Shanghai Composite lost 8.5% in one day of trading.

As stocks fell in Shanghai, other Chinese stock indices also posted major losses, with the Shenzhen Composite losing over 7% and the Hang Seng losing 3.3% in Monday trading, reversing much of the recovery Chinese markets saw in early July.

IMF Warns that Indian Companies Most at Risk with a Strong Dollar


The International Monetary Fund (IMF) recently conducted stress tests to model what effect an appreciation in the value of the US dollar would have on economies around the world. In a somewhat surprising turn, those who fared worst in a world with a more valuable dollar were not exporters of goods to America or countries dependent on US goods, but rather, Indian businesses.

The reason, according to the report, was a possible worsening of borrowing costs and earnings. Troubling news for Indian businesses, as the dollar has been on a sustained track of appreciation.

Spain’s Black Market Economy Hampers Economic Recovery


Spain’s economic recovery started in 2013, after five years of economic stagnation, but analysts say that approximately 1.7 million people earn a living through jobs not taxed by the government. Even though Spain is in the midst of a recovery, the country still has the second highest unemployment rate in the European Union, with Greece coming in first. The unemployment rate went from 23.8 percent in the first quarter to 22.4 percent in the second quarter, according to The Economic Times.

Analysts Warn of Sluggish Recovery Progress for Brazilian Economy


According to experts, Brazil may take years to make a substantial economic recovery. Brazil’s currency fell to its lowest level in 12 years when compared to the dollar.

IMF Warns Japan about Spiraling Debt


Japan has one of the highest levels of debt of any nation in the world, and it is only growing. According to a recent report by the International Monetary Fund (IMF), Japan’s national debt will be three times the size of its economy by 2030 unless the government takes action now to control its spending.

Signs of Global Slowdown Persist


Signs of a global slowdown in economic activity persist as commodities prices fall, fears of debt defaults rise, and China shows weak manufacturing data.

South Korea Economy Slows amid Drought and MERS


South Korea quarterly growth slowed to its lowest level in over two years, partly due to MERS, otherwise known as Middle East Respiratory Syndrome, and a severe drought that affected the nation’s agriculture sector, according to the Associated Press. The virus has so far killed 36 people since May. Service spending and private consumption also fell, which are both attributed to the MERS crisis. Aside from Saudi Arabia, South Korea has suffered from the second largest MERS outbreak.

WTO Members Make $1 Trillion IT Deal


On Friday (July 24), representatives of the member nations of the World Trade Organization (WTO) met in Washington, D.C. to finalize the terms of a new trade agreement to cut tariffs on $1 trillion worth of information technology products. The deal should generate over $1 trillion in technology related trade.