Economy NewsRSS

India's demands block $1 trillion WTO deal on customs rules

WTO Director-General Azevedo gestures during a news conference on world trade in 2013 and prospect for 2014 in GenevaBy David Brunnstrom and Tom Miles NEW DELHI/GENEVA (Reuters) - The World Trade Organization failed on Thursday to reach a deal to standardise customs rules, which would have been the first global trade reform in two decades but was blocked by India's demands for concessions on agricultural stockpiling. "We have not been able to find a solution that would allow us to bridge that gap," WTO Director-General Roberto Azevedo told trade diplomats in Geneva just two hours before the final deadline for a deal. WTO ministers had already agreed the global reform of customs procedures known as "trade facilitation" last December, but it needed to be put into the WTO rule book by July 31. Most diplomats saw that as rubber-stamping a unique success in the WTO's 19 year history, which according to some estimates would add $1 trillion and 21 million jobs to the world economy, so they were shocked when India unveiled its veto.

07/31/2014 06:43 PM

Argentine default to hit Brazil factories, Uruguay resorts

A man walks by a graffiti that reads "No to the debt payment - Tax financial profit" in Buenos AiresBy Walter Brandimarte and Silvio Cascione RIO DE JANEIRO/BRASILIA (Reuters) - Argentina's debt default threatens to worsen trade tensions in South America, adding to the economic woes of Brazil in a tense election year and causing headaches in Uruguay as the Argentine economy looks likely to plunge deeper into recession. Brazilian exporters of goods ranging from shoes to cars and busses are reckoning on lower sales, while hotels and other tourist attractions in the hip Uruguayan beach resort of Punta del Este are bracing for a slow summer season after Argentina's refusal to pay holdout bondholders. The pain will be acute in the auto industry: Brazil, the region's biggest economy, sends about 90 percent of its car exports to Argentina, while Uruguay ships about 60 percent across the River Plate to its southwestern neighbor. "Even before a default, there was a visible fall in exports to Argentina," said Jose Augusto de Castro, president of the Brazilian Foreign Trade Association.

07/31/2014 06:26 PM

Argentine markets fall post-default, NY hearing on Friday

A woman walks past a graffiti in Buenos AiresBy Sarah Marsh and Richard Lough BUENOS AIRES (Reuters) - Argentina's bond and stock markets and peso currency dropped on Thursday after Latin America's No. 3 economy defaulted for the second time in 12 years after the failure of last-ditch talks with holdout creditors. The default came after Argentina did not strike a deal with lead holdout investors NML Capital Ltd, an affiliate of Elliott Management Corp and Aurelius Capital Management, in time for a midnight Wednesday EDT (0400 GMT) payment deadline. The government maintains that it has not defaulted because it deposited an interest payment on one of its bonds due 2033 that is governed by New York law. U.S. District Judge Thomas Griesa in Manhattan said in June when the payment was made that it was illegal because it violated his ruling.

07/31/2014 06:26 PM

Default fuels uncertainty, stock drop in Argentina

An office worker looks at a man sleeping inside the basket he uses to collect cardboard for recycling at the financial district in Buenos Aires, Argentina, Thursday, July 31, 2014. The collapse of talks with U.S. creditors sent Argentina into its second debt default in 13 years and raised questions about what comes next for financial markets and the South American nation's staggering economy. (AP Photo/Rodrigo Abd)BUENOS AIRES, Argentina (AP) — Stocks fell sharply in Argentina on Thursday as the country entered into economic uncertainty with its second default in 13 years, one forced upon it by New York hedge funds with the backing of U.S. courts.

07/31/2014 06:13 PM

S&P500 index posts worst fall since April; indexes down for July

A trader works on the floor of the New York Stock Exchange shortly after the market's opening in New YorkBy Caroline Valetkevitch NEW YORK (Reuters) - The U.S. S&P500 stock index posted its worst daily fall since April and its first monthly drop since January on Thursday, as economic data sparked concern the Federal Reserve could raise interest rates sooner than some have expected. Data showing that U.S. labor costs recorded their biggest gain in more than 5-1/2 years in the second quarter this year came a day after the Fed upgraded its assessment of the U.S. economy while reiterating it was in no hurry to raise rates.

07/31/2014 05:50 PM

Argentine economy minister Kicillof says country not in default
Argentine economy minister Axel Kicillof said on Thursday that the country was not in default and threatened court action if any bondholders demanded their money back. Latin America's No.3 economy failed to clinch a deal in last-minute talks with holdout creditors, leaving it unable to comply with debt payments that fell due on July 30. The government would not oppose an agreement between private parties, Kicillof said.
07/31/2014 04:44 PM

US stocks tumble 2% in broad sell-off

Traders work on the floor of the New York Stock Exchange on July 25, 2014US stocks Thursday plummeted about two percent in a broad sell-off attributed to a range of factors, including weak eurozone data, the Argentine debt default and disappointing US corporate earnings. The Dow Jones Industrial Average tumbled 317.06 points (1.88 percent) to 16,563.30, erasing all its gains thus since the end of 2013. The broad-based S&P 500 sank 39.40 (2.00 percent) to 1,930.67, a seven-week low, while the tech-rich Nasdaq Composite Index fell 93.13 (2.09 percent) to 4,369.77. Michael James of Wedbush Securities said a "terrible" report by the Institute of Supply Management on midwestern manufacturing revived concerns about the US economic recovery.

07/31/2014 04:27 PM

Italy admits it will not meet growth targets

Italy's Economy and Finance Minister Pier Carlo Padoan looks on during a press conference on July 31 2014, in RomeItaly's Prime Minister Matteo Renzi said on Thursday he expected the eurozone's third largest economy to miss its growth target this year -- a failure that will make it tough for the government to balance its budget. We're not in a position to be as virtuous as we imagined," he told members of his centre-left Democratic Party, two weeks after the Bank of Italy dramatically slashed its growth forecast. The admission did not stop the ambitious 39-year-old declaring that Italy -- which currently holds the presidency of the European Union -- will "lead the recovery" in Europe. The national statistics institute (ISTAT) agreed with the sombre assessment on Italy's growth.

07/31/2014 03:56 PM

EU formally adopts Russia sanctions

A statue of Lenin stands in front of a logo of Russia's SberBank on Lenin Square in Donetsk, east Ukraine, on June 21, 2014The European Union formally adopted broad economic sanctions against Russia on Thursday, hoping they will force Moscow to reverse course on the Ukraine crisis. The new measures, finally agreed earlier this week after months of hesitation, target Russia's banking, defence and energy sectors in view of its "actions destabilising the situation in eastern Ukraine," a statement said. A first step limits access by Russian state-owned banks to Europe's financial markets, chief among them London, which will increase their cost of doing business and hinder their contribution to the economy. Five banks were named, among them the largest in Russia: Sberbank, VTB, Gazprombank, VEB and Rosselkhozbank.

07/31/2014 03:31 PM

Argentine economy minister to hold news conference on debt crisis
BUENOS AIRES (Reuters) - Argentina's Economy Minister Axel Kicillof will hold a news conference at 4 p.m. (1900 GMT) on the country's debt crisis, the ministry said on Thursday. (Reporting by Alejandro Lifschitz; Writing by Sarah Marsh; Editing by James Dalgleish)
07/31/2014 03:03 PM

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