U.S. consumer prices post biggest drop in six years

Reuters – U.S. consumer prices recorded their biggest decline in six years in December and underlying inflation pressures were benign, which could bolster the case for delaying the first interest rate increase from the Federal Reserve. The Labor Department said on Friday its Consumer Price Index fell 0.4 percent last month, the largest drop since …

World set to end year in brittle economic state

Reuters – The global economy is ending the year in a fragile state with factory activity shrinking in China, euro zone business growth remaining weak, and emerging market giant Russia in a spiraling currency crisis. “These are uncertain times again and there is a risk of another global downturn,” said Stephen Webster, chief European economist …

Saudi Arabia is playing chicken with its oil

By Mohamad Bazzi for REUTERS – In August 1973, Egyptian President Anwar Sadat paid a secret visit to the Saudi capital, Riyadh, to meet with King Faisal. Sadat was preparing for war with Israel, and he needed Saudi Arabia to use its most powerful weapon: oil. Until then, King Faisal had been reluctant for the …

GCC economies to remain resilient to lower oil prices

By Babu Das Augustine, for Gulf News- Gulf Cooperation Council (GCC) economies can withstand the pressures resulting from lower oil prices without having to make significant policy adjustments but, if needed, will likely adjust their fiscal policies accordingly, said analysts. “In general, we believe there is greater tolerance for fiscal deficits or weaker surpluses in …