• 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.

  • 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.