IMF warns on crisis responses, US proposes $10 per barrel tax on oil and the first Zika case in Europe

The global economy’s system for coping with financial shocks needs to be overhauled to prepare for looming crises in emerging economies, the head of the International Monetary Fund has warned.

Christine Lagarde called on policymakers to bolster existing mechanisms such as swap lines between central banks to access to credit lines from multilateral lenders, to prepare for crises in commodity-exporting emerging economies now coming under severe stress. Recent IMF reforms have given the fund greater resources to respond to economic emergencies but there are still holes in the system leading to distortions in the global economy, she said. (FT)

In the news

Over a barrel

The White House is proposing a bold $10 per barrel tax on oil, sparking a backlash from an energy industry already under the pressure of low prices. Although the Republican-led Congress will ensure it is never enacted, the move is likely to force the Democratic candidates for president to sharpen their positions on energy. (FT)

First Zika case in Europe

Spain on Thursday became the first European country to confirm the Zika virus in a pregnant woman, a milestone in the alarmingly rapid spread of the disease across the globe. (FT)

Sarko plots Le Comeback

Nicolas Sarkozy has vowed to slash taxes and pare back public spending if he is elected French president in 2017, as the former leader begins his campaign for nomination. (FT)

Hello, I’m Johnnycashi

A new species of black tarantula that lives near Folsom Prison, California, has been named after Johnny Cash. (BBC)

Credit Suisse stock plunges

Shares in the Swiss lender tumbled to a 24-year low on Thursday as it reported its first full-year loss since 2008. It has vowed to take more drastic action on slashing costs. (FT)

Vice squad

Although no evidence has been produced that money was changing hands, Thai police swooped on elderly expatriate members of a longstanding card club this week, arresting more than 30, in what appears to have been a zealous application of the country’s strict gambling laws. (FT)

Shell profits dive

Royal Dutch Shell suffered an 80 per cent slide in profits last year with the Anglo-Dutch company becoming the latest of the US and European majors to detail the effects of the crude price collapse on earnings. (FT)

Test your knowledge with the week in news quiz. By how much has the price of a Valeant drug risen over the past year?

It’s a big day for

US economists

The US jobs market has shone even as concerns about emerging markets including China cloud the global economy, commodity prices slide and financial markets shake. However, the US non-farm payroll release for January is expected to show some soften, although the unemployment rate is expected to stay at 5 per cent. (FT)

Food for thought

Anti-ageing remedy

Removing tired-out cells can extend the lifespan of an animal, say researchers at the Mayo Clinic, whose study found that mice lived about 25 per cent longer if such cells were cleared out. The results outline a possible new tactic for treating diseases and potentially extending human life. (MIT Tech Review)

Angry Americans

US citizens are usually regarded as being pretty upbeat but polls ahead of the presidential election show voters are angry. What is fuelling the frustration? (BBC)

Chart of doom

What do you get if you combine the jobless rate with inflation rates? An index of the most miserable economies in the world. Best not to read if you are in Venezuela or Argentina. (Bloomberg)

Misfired bullet?

The Bank of Japan adopted a negative interest rate policy for the first time last week, a move governor Haruhiko Kuroda termed “the most powerful monetary policy framework in history.” But the overall impression of investors is that it has done little or nothing. (NAR)

From boom to bailout

Cheaper crude means many developing countries will take longer to catch up with advanced economies. In the worst cases, some states that depend on oil exports may require an international bailout, a sharp turnround in their fortunes. (FT)

Video of the day

John Authers reports on how a surprisingly high US jobless claims number helped push down the US dollar and drove a rally in gold. (FT)