Economy

Saudi Arabia could be bankrupt by 2020 – IMF

Saudi Arabia Faisaliah Tower

The Middle East’s biggest economy, Saudi Arabia may run out of financial assets within the next five years if the government maintains its current policies, warns the International Monetary Fund. Saudi Arabia is expected to run a budget deficit of 21.6 percent in 2015 and 19.4 percent in 2016, according …

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China calls for new global currency to replace US dollar

Gold Chinese Dragon

China is calling for a global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week’s London summit on the financial crisis. The surprise proposal by Beijing’s central bank governor reflects unease about its vast holdings of U.S. government bonds and …

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Morgan Stanley’s profit plunges 42%

Morgan Stanley

Wall Street bank Morgan Stanley’s profit slumped for the second straight quarter as investors fled the bond, currency and commodity markets amid uncertainty about the timing of a U.S. interest rate hike and concerns about China’s cooling economy. Morgan Stanley, the last of the big U.S. banks to release third-quarter …

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Fast food giant McDonald’s is “facing its final days”

McDonald's closed down Ronald McDonald

An ill-thought scheme intended to retain the last of McDonald’s’ customers has blown up in franchise owners’ faces, showing how little can be done to save the fast food giant from imminent collapse. After seven straight quarters of declining sales, McDonald’s decided to implement an all day breakfast menu earlier …

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Wal-Mart profit forecast drops, stock has steepest decline in 25yrs

Walmart

WalMart has warned that higher wages as well as spending on e-commerce and lower prices would cut earnings per share as much as 12 per cent next fiscal year, sparking the steepest one-day decline in the company’s shares in 25 years. Wal-Mart faces tough competition on multiple fronts, from the …

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China now has the world’s largest middle class, overtaking the US

China middle class Chinese girls shopping

China has crossed another economic threshold. The country’s middle class reached 109 million this year, and overtook the US’s for the first time ever, according to a Credit Suisse report released Oct. 13. China’s middle class is growing much faster than the US’s. Since 2000, China added 43.4 million middle class adults, …

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Monsanto slashes 2,600 jobs, buys back $3b in shares

Hugh Grant Monsanto CEO

Monsanto, one of the world’s largest seed and agrichemical companies, said on Wednesday that it was slashing 2,600 jobs and restructuring operations to cut costs in a slumping commodity market. The company, which said it expected low prices for agricultural products to squeeze results well into 2016, also reported a …

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IMF downgrades global growth outlook, lowest since financial crisis

Lagarde IMF National Press Club economic growth

The International Monetary Fund (IMF) has downgraded its forecast for global economic growth for the fourth time this year, reducing the figure to 3.1 percent from the 3.3 percent estimate in July. Modest growth pickup could occur in advanced economies, along with the slowdown in emerging markets, according to IMF. …

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China launches yuan-based international payment system

Chinese yuan CIPS

China launched the first phase of its China International Payment System (CIPS) in Shanghai on Thursday, allowing cross-border transactions in the Chinese national currency, the yuan. CIPS’ first phase provides clearing and settlement services, according to the People’s Bank of China announcement. Its launch is said to remove hurdles to the yuan’s internationalization by reducing transaction costs and processing …

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Silver supply is struggling to keep up with demand

Silver 999

From Filip Karinja, for Birch Gold Group In the past few weeks and months, the price of silver has been hit relatively hard on the COMEX paper derivatives market. But oddly — or maybe not at all — the complete opposite is happening in the market for the metal in its …

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