Download April 2015, Edition 2, Volume 7

In-The-News
April 2015
South Africa
Edition 2, Volume 7
South Africa Facts
South Africa: An Economy under Threat?
The South Africa economy grew only grew 1.5% in 2014, which is
its slowest it’s grown since 2009. The major reasons why are due to
the reoccurring mining labor strikes and numerous electrical
blackouts the country has recently been experiencing.
http://www.aljazeera.com/programmes/countingthecost/2015/03/southafrica-economy-threat-150307081926174.html
South African central bank comments on rates
There has been a moderately declining trend in terms of economic
activity in 2015. The South African central bank estimates growth
at just 2.2%. The central bank also expects the Rand to continue to
be volatile. Growth in the country has largely been restricted by
the electricity supply in South Africa.
http://www.reuters.com/article/2015/03/26/safrica-rates-highlightsidUSL6N0WS44420150326
South African Rand

South Africa – A BRICS member
-The Republic of South Africa (RSA),
is the 25th-largest country in the
world by land area, and with close
to 53 million people, is the world's
25th-most populous nation. It is a
multiethnic society encompassing a
wide variety of cultures, languages,
and religions. Its pluralistic makeup
is reflected in the country’s recognition of 11 official languages, which is
among the highest number of any
country in the world.
-South Africa’s economy is the second-largest in Africa and the 34thlargest in the world. It is ranked as
an upper-middle income economy
by the World Bank, and is considered to be a newly industrialized
country.
Did you know?
-The first heart transplant was performed by Dr. Christian Bernard in
Cape Town in 1967.
-More people are living with aids in
South Africa than anywhere else in
the world; more than 5 million (10%)
are infected and the life expectancy
has dropped to under 50 years of
age.
-The numbers 46664 carries a huge
significance in South Africa. They
were former-president Nelson Mandela’s prison numbers and represent
many of his beliefs/causes.
-The South African musical horn,
called the vuvuzela, which became
famous during the 2010 World Cup,
is so popular that there is an app to
play the sound on an iPhone.
China
Turkey
China’s February Exports Rise 48.9%
Turkish government pledges stronger fiscal discipline
China's exports have risen substantially in February. The
Turkey’s Prime Minister Davutoglu met with his Cabinet minis-
increase can be largely attributed to the improving econ-
ters, banking regulators, and Central Bank Governor Basci to
omy of the U.S. which is the destination of many export-
discuss the economy and make plans to implement strict fiscal
ed products. Another potential cause of the high number
discipline. During the meeting they established that the econ-
is the lunar New Year holiday. However it is still be-
omy’s foundation is strong and the decline in oil prices is caus-
lieved that March will show an improvement. This in-
ing more positive results of inflation and the current account
creased export surplus is causing concerns to the de-
deficit. The government is working on a plan that will support
creasing value of the Yuan.
industrial production, employment, and the capital structure of
companies. They have also set goals to increase Turkey’s GDP
http://www.bloomberg.com/news/articles/2015-03-08/china-
to $1.3 trillion by 2018 from $820 billion in 2013.
exports-surge-48-3-beating-economists-estimates
http://www.turkishweekly.net/news/181543/turkish-govermentpledges-stronger-fiscal-discipline.html
India
“India to outpace China in growth rate in 2015-2016,
ADB says”
According to the Asian Development Bank, India is on track
to surpass China’s growth rate during the 2015-16 period.
India’s recent ambition to improve the countries business climate is showing signs of economic improvement. According
to the ADB, China is projected to continue a moderate deceleration during 2015-16 due to a government reform agenda,
A truck driver walks past a shipping container being moved at
along with investment in fixed assets slowing down.
the Yangshan Deep Water Port, part of China (Shanghai) Pilot
http://timesofindia.indiatimes.com/business/india-business/India-to-
Free Trade Zone's Yangshan free trade port area, in Shanghai,
outpace-China-in-growth-rate-in-2015-16-ADB-
China. Photographer: Tomohiro Ohsumi/Bloomberg
says/articleshow/46678443.cms
To Boost China Sales, Amazon Tries Alibaba
Partnership
Indian Rupee Posts Longest Run of Gains since 2011
on Fed View
Amazon now officially has its own store on Alibaba's
India’s Rupee is experiencing the longest upward streak India
website, which controls 90% of the market in China
since June 2011. Based on U.S. speculation, the Federal Re-
along with JD.com. This deal took two years for Ama-
serve will refrain from tightening policies until the second half
zon to negotiate, but now they have a niche in e-
of the year, which will reduce the risk of emerging market
commerce in China that they did not have before and
outflows. The Rupee has risen 1.3% this year, securing its po-
have exposure to 334 million active buyers.
sition as the best performance in Asia.
http://www.bloomberg.com/news/articles/2015-03-24/indian-rupee-
http://www.forbes.com/sites/ywang/2015/03/05/toboost-china-sales-amazon-tries-alibaba-partnership/
set-for-longest-run-of-gains-since-2011-on-fed-view
Chile
Chile Economic Outlook
Chile's economy was suffering in 2014 due to a lack of in-
South Korea
Samsung Electronics, China Trade Deal Give Boost
to South Korea’s Yuan Hub Ambitions
vestments and weaker private consumption. They witnessed
Samsung Electronics will help South Korea become a global
the weakest growth rate since 2009. However, since January,
hub for the offshore yuan business by preparing to start
the indicators have a positive outlook for Chile's economy.
trading Chinese currency directly with South Korean won.
There has been an increase on the output of copper which is
South Korea will be the third country in the world to begin
one of Chile's biggest economic factor.
direct trading of yuan for local currency in an attempt to
http://www.focus-economics.com/countries/chile
grab a larger share of the expanding business opportunities
Japan
involving the yuan outside of China.
Japan’s economy emerges from recession, but growth
weaker than forecast
Japan’s economy has rebounded from a recession in the final
quarter of 2014. The economy grew by .6% in the last quarter
making the total growth for 2014 zero percent. The economy’s
growth in the final quarter was lower than the .9% estimated
http://www.nytimes.com/reuters/2015/02/24/technology/24reuter
s-samsung-elec-yuan.html?_r=0
Brazil
Brazil raises benchmark interest to 12.75%, highest
level since 2009
previously by economists. Their explanations for this lower
Brazil’s central bank’s interest rate was raised to 12.75% on
than expected growth is weak investment and low domestic
March 4 – the highest since 2009. This was done to combat the
consumption due to recent tax hikes.
increasing inflation rates in Brazil as economic growth slows
http://www.japantimes.co.jp/news/2015/02/16/business/economy-
and politics are unsteady. Economists are predicting that the
business/japans-economy-emerges-from-recession-growth-weaker-
interest rate will increase again. Brazil is increasing rates
than-forecast/#.VOU3nfnF-Vo
while other BRICS nations are loosening monetary policy to
Russia
increase economic growth.
Russian ruble hits all-time 2015 high
interest-to-12.75-highest-level-since-2009
http://en.mercopress.com/2015/03/05/brazil-raises-benchmark-
The Russian Ruble has hit a record high for 2015. This increase is mainly from a minimal increase in oil prices of 1.07%
and tax season. Companies are likely converting foreign cur-
Consumer Confidence in Brazil Falls to Historic Lows
rency in the Ruble in order to pay corporate tax. The ruble
Consumer confidence in Brazil has recently reached its record
strengthened to 57 against the dollar and 62.24 against the
low. Along with the consumer confidence index falling, citi-
Euro. The Ruble was losing value in 2014 but is slowly gain-
zens who say that the economic situation is good fell from
ing ground in 2015.
5.8% to 4.5%, and those who believe it is bad rose from 71.6%
http://rt.com/business/243993-ruble-highest-2015-dollar/
to 77.6%. Economic factors such as inflation and the labor
US freeze $640 mil in sanctioned Russian bank assets
market are contributing to the fall in confidence, but political
As part of escalating sanctions against Russia over its policy
corruption and turbulence as well as the water and energy
in Ukraine, the United States has frozen accounts of three
shortage are contributing, too.
Russian banks. The sanctions total $640 million. The busi-
http://riotimesonline.com/brazil-news/rio-politics/consumer-
nesses and individuals who have fallen under US sanctions
confidence-in-brazil-falls-to-historic-levels/
have been negatively affected and, as a result, Russian parliament is considering a bill that would compensate Russian
companies and individuals affected by Russian sanctions .
http://rt.com/business/238297-russian-banks-frozen-assets/
Saudi Arabia
Argentina
Saudi Arabia becomes world’s biggest defense im-
Outrage as Argentina tells Britain to slash its armed
forces
Britain has been increasing its military power in the Falkland
Islands, saying that they are doing so because Argentina
poses a real threat to them. The Argentine government says
that Britain’s claims are “absolutely unjustifiable,” and Argentina doesn’t pose any real threat to the Falkland Islands at
this time. This move on Britain’s part has also promoted Argentina to call upon Britain to restart negotiations over the
future of the Islands.
http://www.express.co.uk/news/world/566399/Falklands-FalklandIslands-Argentina-defence-threat-military-UK-Britain-Michael-
porter
Saudi Arabia has surpassed India to become the world’s
largest arms importer. Saudi Arabia spent $6.5 billion last
year while India only imported $5.8 billion. Saudi Arabia
and the United Arab Emirates have imported a combined
$8.7 billion. Some believe the reason for the increase in arms
could be the looming threat of Iran with their nuclear weapons and the threat of ISIS.
http://www.dailystar.com.lb/Business/Regional/2015/Mar09/290041-saudi-arabia-becomes-worlds-biggest-defenseimporter.ashx
Fallon
Philippines
Indonesia
Aquino to businessmen: 'You ain’t seen nothing yet'
“Investors agonize over Indonesia's floundering anti-
The president of the Philippines, Benigno Aquino III spoke to
graft drive”
over 500 business leaders, investors, and policy makers at the
Euromoney Investment Forum that the economy in the Philip-
This article exposes the declining drive of Indonesia’s Cor-
pines is progressing and will continue to grow in the future.
ruption Eradication Commission (KPK) to eliminate the
He told them of the many achievements thus far for the econo-
widespread corruption throughout the government and
my and then spoke about his plans for growth. He said that
business sector of the country. It also touches on outside in-
with the help of ASEAN trade partners and believing in the
vestor worries and their inability to wait any longer as In-
Filipino people, investors should have trust in the economy of
donesia tries to rid its country of corruption.
the Philippines.
http://www.businessinsider.com/r-investors-agonize-overindonesias-floundering-anti-graft-drive-2015-3
http://www.rappler.com/business/economy-watch/87802-aquino-pheconomic-growth
Nigeria
Nigeria's Buhari wins historic election landslide
Muhammadu Buhari became the first Nigerian to oust a president through the ballot box, putting him in charge of Africa's
biggest economy and one of its most turbulent democracies. Despite some technical glitches and the killing of more than a dozen voters by Boko Haram gunmen, the election has been the
Indonesia's President Joko Widodo leads a
cabinet meeting at the Presidential Palace in
JakartaRead
http://www.businessinsider.com/rGeneseoinvestors-agonize-over-indonesiasInternational Business Club
floundering-anti-graft-drive-2015Editors: Brigid Lonergan & Leah Swarthout
Contact: [email protected]
3#ixzz3XUA9V3Un
smoothest and most orderly in Nigeria's history. A peaceful
transition of power in Africa’s most populous nation sends a
strong democratic message across the African continent where
presidents cling to power for decades.
https://ca.finance.yahoo.com/news/nigeria-oppositions-buhari-aheadvote-count-resumes-091209603.html