Category: News Desk

India to Target Inflation


India’s economy has been growing steadily for quite a few years. Along with high growth comes inevitable inflation. In response, Indian policymakers have decided on a new strategy to target inflation as they gear up for even stronger growth in coming years.

The new policy, dated February 20, indicates that the government will target inflation growth to 4 percent, with room for variance of plus or minus 2 percent. The policy also directs the Reserve Bank of India (RBI) to bring inflation below 6 percent by January 2016. 

Japanese Economy Grew in the Fourth Quarter


Japan’s GDP grew by 2.2 percent in the fourth quarter of 2014 because of exports. Despite an expectation of 3.6 percent growth, many economists believe Japan’s dark days are passing.

This news gives Prime Minister Shinzo Abe enough wiggle room to implement more of his growth-based policies, otherwise known as “Abenomics.” Abenomics has “three arrows,” which are structural reforms, fiscal stimulus and easy money. His aim is to get Japan out of its two-decade economic slump, but there are some hurdles to overcome.

Russian Economy Presses on Despite Sanctions


Russia’s foreign debts are declining as the government relies on currency reserves to pay down state company debts to foreign creditors. Economic sanctions appear to have no major impact on the Russian economy, only affecting six percent of the business sector.

Are Credit Cards Slowly Dying?


For the last 50 years, few financial products have been more profitable for the issuing institutions than credit cards. Indeed, companies like American Express would routinely report double-digit growth year after year, an impressive feat given the sums to which that growth equates. While the industry would occasionally experience ebbs and flows, typically occasioned by shifts in the economy, overall growth consistently remained strong.

Economic Indicator Hits Lowest Level Since 2009


An indicator of business activity in fell to its lowest point since July 2009, with double-digit declines in production, new orders, and inventory backlogs.

The Institute for Supply Management’s Chicago Business Barometer fell 13.6 points in February, indicating a contraction of business activity in the region for the first time since 2013.

Low Inflation, Rising Jobless Claims Bring Deflation Fears to U.S.


A mixture of low and falling inflation combined with a rise in jobless claims may indicate the United States could follow the Eurozone down a deflationary path.

According to the Cleveland Federal Reserve, the median consumer price index rose just 0.2% in January, while the trimmed-mean CPI rose 0.1% for the same period.  A drop in motor fuel, which fell at a 91.5% annualized rate in January drove the low growth, followed by a 58.5% annualized fall in fuel oil.

Netherland’s Influence on European Natural Gas Prices


Natural gas prices in Europe continue to climb, as the continent’s largest producer, the Netherlands, announced a further reduction in their production cap for the first half of 2015. Sources from Groningen announced that the production from the gas field, the largest in Europe, would fall below a level announced at the end of last year.

This is the opposite of America, where supply is up and prices down because of innovation and creativity by the private sector via oil shale and fracking.

U.S. New Home Sales Fall, Weather Blamed


New home sales fell slightly in January, which economists are blaming on cold weather in the Northeast.

Approximately 481,000 new single-family home sales occurred in January on a seasonally adjusted annualized rate, according to a new report released by the Commerce Department. While the department revised upwards its previous estimate for December sales, a slowdown in January came despite falling interest rates and relative warmth in some parts of the country.

Nigeria’s Naira Breached 200 per Dollar


The Nigerian currency depreciated another 2.2%, pushing it to 202.50 per dollar, the most since 22 December. The recent postponement of the Nigerian Election only reinforces the likelihood of further devaluation of the West African currency.

Federal Reserve Signals Possible Rate Hike Delay, Bonds Stall


The Federal Reserve plans to keep interest rates at historic lows as labor participation and price inflation data remains weak.