Newmont Mining Corporations has declared that it would buy its smaller rival Goldcorp in a deal worth of $10 billion. This deal would make Newmont world’s largest gold producer at the time when easy-to-find reserves are decreasing.

The deal is the second in the last 12 months. Another high profile merger happened in last September when Barrick Gold Corp agreed to buy Randgold Resources Ltd. It implies how the industry is aiming to cut the costs and increase scale.

After the merger, the company will be known as Newmont Goldcorp. And, owing to the anticipated size, it will overtake the current leader Barrick Gold Corp in total production. It will possess mines in America, Australia, and Ghana.

Newmont Mining Corp, Colorado-based company, will also sell assets worth of $1 billion to $1.5 billion over the next few years as a part of the deal, and the same had happened in the last year’s merger between the when Barrick Gold Corp agreed to buy Randgold Resources Ltd.

After the completion of the deal, the company hopes to produce 6-7 million ounces of gold annually for the next ten years whereas Barrick has expected of providing 4.5 million to 5 million annually.

Newmont Chief Executive officer Gary Goldberg will lead the new company. And he is scheduled to retire by the end of 2019. And, the reign will be overtaken by the existing Chief Operating Officer Tom Palmer.

Newmont has declared of offering 0.3280 of its share plus $0.02 for each share of Goldcorp. And, it would be translated to a share price of $11.46 per share in the market for Newmont Mining Corp. It would be gaining a premium of 18 percent as per the data with New York Stock Exchange.

The deal is scheduled to end by the end of the second quarter, and it will save $100 million for the company.

Vancouver-based Goldcorp’s U.S.-listed shares inflated about 13 percent before the bell on Monday. Newmont Mining’s shares were down by 3 percent prior to the merger.

After a deadlock between Trump’s administration and the Congress, the budget could not be passed. And it has been more than 22 days that the United States is facing the longest shutdown of the past few years.

And now as per a study by S&P Global Ratings, if the shutdown doesn’t end in two weeks, the cost of the shutdown is likely to surpass the cost of the proposed border wall for which the shutdown has happened in the first place.

As per the report, around $6 billion will be the cost of the shutdown to the American economy and the proposed expenditure of the Border wall by Trump is $5.7 billion. And as per the latest data, by the end of the last week, US has lost around $4 billion.

Beth Ann Bovino, S&P’s chief U.S. economist said they have estimated that the shutdown is going to shave $1.2 billion each week in this quarter from the real GDP. Though it seems very little owing to the large American economy, it will have major impacts on the workers whose dependence on the paycheck is tremendous.

The firm said that they had come up with this figure of the loss due to the shutdown including lost productivity by furloughed workers and a decrease in sales for contractors to the government.

It should be reported here that the shutdown has entered into the 23^rd day on Monday and it has been the longest period of shutdown. President Trump’s demand for money for the U.S.-Mexico border wall could not be fulfilled by the Congress; hence the whole budget got stopped. Trump has also threatened the House to veto any legislation passed by the Democrats in the House for temporary Government reopening.

Consumer Spending-

As the economic shutdown enters into a record-breaking number of days, the retail stores like Best Buy and Bed Bath & Beyond have started to feel the slump in sales.

According to Wells Fargo retail analysts, with more than 800000 federal workers not being paid for the work they have been doing, the economic effect of the shutdown will at least be $2 billion per week.

The retailers who deal with discretionary products will be affected the most. And some retailers like Ulta Beauty and Dick’s Sporting Goods have started to see changes in demand as they operate in the area where Government employees can be found predominantly.

Retailers dealing with household necessities are safe for now. But, if the shutdown persists for more number of days, it may affect the stores like Walmart and Kroger. But, the retailers dealing with staple products like groceries and auto parts are least likely to be affected.

Also, the effect of shutdown can be seen on restaurant chains and hotels. The leisure activities are down specifically in Washington, D.C., Maryland and Virginia.

GDP-

The shutdown of 2013 which lasted for 16 long days ultimately shaved off 0.4 percent of GDP of the fourth quarter. The payments to the government workers and house sale will also be affected as the delay will be happening in passing federal loans.

J.P. Morgan has already cut their first-quarter growth prediction by 2 percent because of the shutdown. Bank of America Merrill Lynch has downgraded 0.1 percent bringing the forecast to 2.8 percent for the first quarter.

As per the experts, if the shutdown ends before the end of this quarter, the economy is likely to be revived once the workers and contractors get their pay. Though the government workers are likely to be paid after the shutdown, their disposal cash at hand will be higher ultimately reviving the economy, the value lost to the contractors and the other related businesses cannot be revived.

After being infamous for facing the ire of the United States, North Korea seems to have changed its way. Though, not on its security front, it is now aiming to bring about economic development. The recent meeting between the North Korean leader Kim Jong Un and Chinese President Xi Jinping happened in Beijing. The meeting had multiple agendas like economic ties, nuclear talks and a possible second summit between the U.S. President Trump and Kim.

But, there was one topic which was officially not on the agenda. But, it was considered and thought upon. It was the idea of North Korea joining China’s ambitious continent-spanning Belt and Road Initiative, a project aiming to link more than 60 countries in Asia, Europe, Africa, and the Middle East through overland and maritime routes.

After the nuclear threats, the isolation by major countries and the United Nations has been weakening the nation gradually. North Korea is now investment-hungry. And, as per experts, it is the major reason Kim has been engaging with global leaders over the past few years.

North Korea’s other Goals

As the country has been trying very hard to secure nuclear power for prospective alleged threats from the neighbors, North Korea should now move forward to have other goals as well. It has a bad economic condition, so an economic goal for the nation is the need of the hour.

Seoul based online newspaper agency NK News published last month that North Korea is in need of $7.7 million investment. And the information is on North Kore’s foreign trade ministry’s website. And, for this to be happening North Korea would definitely need the help from its rich neighbors.

Among all its neighbors, China seems the brightest for North Korea. The geography, political ideology and the history they share are quite comforting for North Korea. And, China has been the largest trading partner for the economically isolated country for last few years.

Dane Chamorro, a senior partner in the Asia Pacific division of Control Risks, a consulting firm specializing in politics, said North Korea would love to be a part of the mighty Belt and road initiative. It is only waiting for an invitation. Once it is in the group, it can utilize investments and funding to upgrade railway links, ports, and other infrastructures.

Beijing also is not immune to this idea. It has always been prompt in adding more number of partners to this multi-country project. It should be reported here that China has invited North Korea to be a part of the Belt and Road Initiative summit in 2017. But, as of now, nothing has been confirmed about the partnership.

Mintaro Oba, a former U.S. State Department official who specialized in the Koreas in the Obama administration, said having North Korea in the group will be more trouble than the economic worth. So, it is evident China will take much time to consider this.

Having countries like North Korea in a group only will give the group a bad name. It will further cement the doubts and skepticisms of the United States and India that Belt and Road initiative is only to increase the dependence of other member nations on China and with so much of skepticism, it is unlikely to flourish.

As of now, the Chinese leader has decided to go slow with North Korea. Both of these countries will have to wait and watch the global changes in the geopolitical arena. Then only China can decide whether the two countries’ relationship can go more than just security to an economic partnership.

If denuclearisation happens soon in North Korea, it is more likely that China will help the country to be able to stand on its own. China would definitely like North Korea to learn from its history. The economic type and model of economic form in China can be implemented in North Korea; if that happens, China would be the first in Asia to help the country in economic development.

And another factor in this would be South Korea. South Korea is a significant partner in BRI, and if North Korea is taken aboard, South Korea will also have to decide how much the government wants to connect the New Northern Policy with the BRI.

After the unexpected departure news of the World Bank President, the race is on to fill the post. Former UN Ambassador Nikki Haley and the daughter and advisor of President Trump, Ivanka Trump is among the contenders.

Kim surprisingly announced his departure from the World Bank after cutting short his second term. His second term was scheduled to end after three years. And, Nikki Haley stepped down of the post of Ambassador last month. Along with Ivanka and Nikki, the other names that are being floated are treasury undersecretary for international affairs David Malpass and Mark Green, head of the US Agency for International Development.

It should be reported here that Ivanka Trump had worked as the driving force behind the $1 billion Saudi Arabia supported fund to promote entrepreneurship by women. The Treasury Department denied making any comments when asked about the list of potential candidates. The department said it has got multiple recommendations for filling the post, and they are initiating an internal review process for choosing a nominee for the United States. It also added that it was looking forward to working with the Governors to select the new chief.

The World Bank was founded after World War II. And, since its inception, by convention, the United States has been choosing its chiefs. But, recently the times have changed. Kim was the first chief to face resistance in the form of competition in 2012. A nominee of the United States no longer enjoys absolute access to the post. However, the Bank’s board had assured to have an open, merit-based and transparent selection procedure for selection of the chief and it would not exclude any candidates for not being American.

The World Bank Board has said that it would start accepting nominations for the replacement of Kim by the next month and the name of the next chief would be finalized by April. It also added that the next president of the elite institution should have a proven track record of leadership and experience in managing large organizations with international exposure.

The outgoing president of the World Bank has declared that he would work with the private sector to bridge the gap in funding meant for infrastructure development for the developing and underdeveloped nations. It should be noted here that there was information about a scuffle between the Trump administration and Kim, but the information was never officially verified. So, ultimately Kim’s departure has given President Trump an opportunity to post the person of his choice.

The World Bank Group consists of five organizations which provide funds on loan to developing nations for infrastructure development. It has currently 189 member countries. Along with the World Bank, International Monetary Fund (IMF) also works on that front. And like the World Bank, IMF has been having its chiefs from European origin from the starting.