Category: News Desk

Optimism Builds on Greece Deal as Oil Falls


Stocks surged in Europe and the United States as rumors floated about an announcement, maybe tomorrow, regarding an agreement over Greece’s debt.

Equities rose as rumors surfaced that the European Commission will announce a compromise between the European Central Bank, the German Bundesbank, and the Greek government. The EC denied the rumors, acknowledging that “intense contacts” continue between the EC President Jean-Claude Juncker and Greek representatives.

Colombia Faces Economic Slowdown


The Colombian economy may slow in 2015, top banking officials have stated. In a statement released by the chair of the Banking Association of Colombia (BAC), Mr. Santiago Castro mentioned that Colombia’s economic slowdown would be quite strong. However, it would fall short of a recession. Castro released this statement at the 27thCongress of Treasury, in Cartagena.

Oil Woes Rise and Growing Russia Uncertainty


Oil prices may fall again by over 50% even as rising geopolitical tensions threaten energy supply chains in Europe.  A report by Citigroup suggests that oil can fall to as little as $20 per barrel as a result of historically unprecedented supply storages, a situation exacerbated by record production in Brazil and Russia as the countries seek to make up for falling prices with higher volumes.

Argentina’s Double Default


Argentina’s economy contracted more than was forecast in the third quarter of 2014, as the South-American nation defaulted on its debt for the second time in thirteen years. As a result, the government was pushed to reduce imports, amid an already worrisome shortage of US dollars.

Gross domestic product shrunk by 0.8% that quarter, according to the agency for national statistics, and the median estimate of nine economists surveyed by Bloomberg was for a decline of 0.6%.

The Week Ahead: U.S. Labor Data, European Production


After the Federal Reserve releases its labor market conditions index today at 10am EST, a number of key economic indicators will be released that will measure economic developments in the United States and in Europe.

European lawmakers have recently disagreed on how the European Central Bank should move forward, in light of disinflationary trends that have caused both negative bond yields and deflation throughout central and northern Europe.

The Pendulum Swings Towards a Mid-Year Rate Hike


The US employment report was nothing shy of spectacular.  Job growth was better than anticipated. Back months had higher revisions. Earnings growth recouped the December fluke. The participation rate jumped. It is true that the unemployment rate and the underemployed edged higher. Yet, on balance, those who doubted a mid-year Fed hike have to reconsider.

Socialism Experiment Proving a Bitter Pill for French Economy


Thomas Piketty is a known name to anybody who finds the ideas of socialism palatable. In his work titled ‘Capital in the 21st century’, the proponent of Marxist ideas claimed to have worked out an effective wealth generation model. In essence, the book talked about the imposition of 70% wealth tax upon people in ‘rich’ bracket of a country, with proceeds going towards funding opportunity and wealth creation for the poor.

The Week in Review: Trade Deficit Climbs, Employment Gains


The U.S. has a larger trade deficit with the rest of the world, but employment gains indicate strength in services is supporting the broader economy.

The Bureau of Economic Analysis announced Thursday that the United States has a trade deficit of $46.6 billion as of December 2014, up 17% from the prior month.

Factors that could Improve Michigan’s Economy


Statistics suggest that Michigan’s economy is improving. This year could bring more success as the unemployment rate falls, auto sales increase, and cheap gasoline puts extra cash in everyone’s pockets. Thank goodness for oil shale and fracking!

Employment, Services Rise with Higher Mortgage Applications


Three separate reports indicate that U.S. income and spending in the consumer services and financial sector are on the rise, helping job growth and business income.

The Institute for Supply Management reported Wednesday that the non-manufacturing sector rose more than expected, with activity as measured by the Non-Manufacturing index up to 56.7 in January, 0.2 points higher than December’s reading and slightly above forecasts.