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☆ German economy enters recession as first-quarter GDP data is revised lower
▼ + stars: | 2023-05-25 | by ( Silvia Amaro | ) www.cnbc.com time to read: +2 min

The German economy entered a technical recession in the first quarter of this year, as households tightened spending. Data from the German statistics office on Thursday showed a downward revision to GDP (gross domestic product) from zero to -0.3% for the first three months of the year. The European Central Bank is expected to raise rates again at its next meeting on June 15. German Central Bank Governor Joachim Nagel said earlier this week that the ECB has "several" more rate increases ahead. He is one of the most hawkish members of the central bank.

"Inflation expectations are still very high," Campos Neto told a seminar hosted by newspaper Folha de S.Paulo on Monday, highlighting elevated long-term forecasts as particularly problematic. "Long-term forecasts remained little changed," the central bank chief said. "And we have a problem that are long-term inflation expectations persistently stuck around 4%". In the minutes of its May meeting, the central bank expressed concerns about inflation expectations, saying it continued "to assess that de-anchored expectations raise the cost of bringing inflation back to the target". Campos Neto acknowledged that headline inflation has been slowing down in Brazil, but noted that the core index remains "high" and "well above target".

☆ France summons brother, assistant of Lebanon central bank boss in fraud probe
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +2 min

Central bank chief Riad Salameh, his brother Raja Salameh, and his assistant Marianne Hoayek are being investigated in Lebanon, France and other countries for allegedly taking hundreds of millions in funds from the central bank. France has set a hearing in Paris for his brother Raja on May 31 and for Hoayek on June 13, a source close to the matter told Reuters. A Lebanese judicial source confirmed to Reuters that Lebanon's judiciary had received the summons and was working to deliver them. France last week issued an arrest warrant for Salameh, 72, after he failed to attend his own hearing in Paris. The Salameh brothers and Hoayek have already been charged in two separate cases in Lebanon related to embezzlement and other financial crimes.

☆ 'We are not decoupling': G-7 leaders agree on approach to 'de-risk' from China
▼ + stars: | 2023-05-22 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Chinese President Xi Jinping and hands with then U.S Vice President Joe Biden inside the Great Hall of the People on December 4, 2013 in Beijing, China. Leaders of the Group of Seven agreed there's a need to de-risk, not decouple from China, and acknowledged challenges posed by the mainland's practices which "distort the global economy." "We are not decoupling or turning inwards," the G-7 said in a joint statement released over the weekend as leaders met in Hiroshima, Japan. Leaders added, "We will seek to address the challenges posed by China's non-market policies and practices, which distort the global economy. Reiterating the stance, President Joe Biden said at a press conference on Sunday: "We're not looking to decouple from China, we're looking to de-risk and diversify our relationship with China.

☆ Brazil's finance minister signals potential change to inflation target timeline
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +1 min

BRASILIA, May 18 (Reuters) - Brazil's Finance Minister Fernando Haddad on Thursday suggested that the country's new government is looking at adjusting the timeline for achieving its inflation target. Haddad reiterated he favors "a continuous inflation target" rather than a calendar year-based target, saying Brazil and Turkey were the only two countries to use the latter. President Luiz Inacio Lula da Silva has advocated for higher inflation targets and a less stringent monetary policy. The central bank has cautioned that discussions about higher targets might have contributed to an increase in inflation expectations, helping keep interest rates high. The National Monetary Council, which comprises the finance minister, the planning minister and the central bank governor, is scheduled to convene in June to discuss inflation targets.

☆ BoC's Macklem says it's far too early to think about interest rate cuts
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +1 min

SAO PAULO, May 19 (Reuters) - Bank of Canada Governor Tiff Macklem reiterated on Friday it is far too early to be thinking about interest rate cuts, adding that he expects the consumer price index to decline to around 3% this summer and back to the bank's 2% inflation target around the end of 2024. Macklem told a seminar hosted by Brazil's central bank that the Canadian monetary authority has been using a pause in interest rate increases to assess whether policy has been tightened enough to get inflation back to 2%. Canada last hiked rates in January, holding its benchmark rate at 4.5% since then, despite saying it would be ready to hike again if inflation risks remain significantly above target. "So far, Canadians are proving resilient," the central bank governor said, pointing out that delinquencies on mortgages remain low. Reporting by Gabriel Araujo; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Lebanon’s central bank boss urged to resign after French arrest warrant
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +2 min

Summary Lebanon's deputy PM says Salameh should quitCentral bank head under investigation for fraudFrench prosecutors issue arrest warrantBEIRUT, May 18 (Reuters) - Lebanese Deputy Prime Minister Saadeh al-Shami called on Thursday for Central Bank Governor Riad Salameh to resign following France’s issuing of an arrest warrant against him as part of a fraud investigation. He plans to appeal against the French warrant, which he told Al-Hadath violated principles of a Lebanese-French agreement without giving more details. A Lebanese judge overseeing a local case against Salameh has rejected his lawyers' defence arguments, clearing the way for a June 15 hearing, a senior judicial source told Reuters. The judicial source told Reuters a new hearing date for Raja Salameh had also been set for June 15. French prosecutors' warrant for Riad Salameh, issued on Tuesday, was the first from any of the foreign probes into him.

Geoff Gottlieb, the IMF's Senior Regional Representative for Central, Eastern and South-Eastern Europe, warned of the potential for fiscal policy to fuel inflation and so force monetary policy to remain tighter for longer. "We think Polish fiscal policy can do more to help reduce inflation," he said in an interview. "A new fiscal impetus would likely add to inflationary pressures and could also necessitate additional monetary policy tightening." "Our recommendation is for the (Monetary Policy Council) to resume monetary policy tightening if key indicators - core inflation momentum, wage growth, and the economy - fail to slow as projected," he said, urging the MPC to make clear that talk of cuts was premature. The European Commission projects Poland's average inflation rate at 6% next year, the highest in the European Union, retreating from nearly twice that level expected this year.

☆ 'Foreign investors are back': Japan stocks surge to their highest since 1990
▼ + stars: | 2023-05-17 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

The firm noted that foreign investors bought a net 2.1 trillion yen ($15.4 billion) worth of Japanese stocks in April – adding that Japan's corporate sector remains the largest net buyer of Japanese stocks, with a volume of 1.1 trillion yen year-to-date. Central bank focusSociete Generale strategists added that their overweight position on Japanese equities remains unchanged. The Japanese yen traded at slightly weaker levels to 136.43 against the greenback on Wednesday. "Keep an overweight position on Japan equities, unhedged, and biased to banks, financials, and value," they wrote. "Specifically, we note the solid fundamentals compared with stocks on overseas markets, and we also think that expectations for structural changes/reforms could push Japanese equities up even further," wrote Japan equity strategist Kazunori Tatebe.

☆ IMF official says Sri Lanka reforms critical, evaluating progress
▼ + stars: | 2023-05-15 | by ( Uditha Jayasinghe | ) www.reuters.com time to read: +2 min

COLOMBO, May 15 (Reuters) - The International Monetary Fund (IMF) mission in Sri Lanka will evaluate progress made on reforms so far and complete an exercise to improve governance in key areas of the economy, an IMF official said on Monday. An IMF team is in Colombo until May 23 as part of regular consultations ahead of the first review mission later this year. "It is now essential to continue the reform momentum," said Krishna Srinivasan, Director of Asia Pacific Department at IMF. Sri Lanka, with the help of a $2.9 billion bailout from the global lender, is trying to recover from its worst financial crisis since gaining independence in 1948 and turn around its battered economy. Peter Breuer, IMF Senior Mission Chief for Sri Lanka, Asia and Pacific Department said the lender will be looking at whether the government's macro framework is still appropriate or whether it requires revisions.

May 16 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. If the April snapshots of retail sales, urban investment and industrial production come in weaker than expected - and consensus forecasts are for solid rebounds from the month before - the China bears and doomsters will be in the ascendancy. Broader market sentiment may be reasonably well supported after Wall Street eked out modest gains on Monday despite alarming slump in a key index of U.S. factory activity and another day of deadlock in the U.S. debt ceiling negotiations. Here are three key developments that could provide more direction to markets on Tuesday:- Australia consumer sentiment (May)- China investment, retail sales, industrial output (April)- Euro zone GDP (Q1, flash estimate)By Jamie McGeever; Editing by Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ North Korean hackers stole $721 million in cryptocurrency from Japan - Nikkei
▼ + stars: | 2023-05-15 | by ( ) www.reuters.com time to read: +1 min

TOKYO, May 15 (Reuters) - Hacker groups affiliated with North Korea have stolen $721 million worth of cryptocurrency assets from Japan since 2017, the Nikkei business daily reported on Monday, citing a study by U.K. blockchain analysis provider Elliptic. The amount is equal to 30% of the total of such losses globally, the Nikkei reported. The report comes after Group of Seven finance ministers and central bank governors said in a statement on Saturday that they support measures to counter growing threats from illicit activities by state actors, such as the theft of crypto-assets. According to Elliptic, which conducted the analysis on behalf of the Japanese newspaper, North Korea has stolen a total of $2.3 billion in cryptocurrency from businesses between 2017 and 2022. Reporting by Satoshi Sugiyama, editing by Ed OsmondOur Standards: The Thomson Reuters Trust Principles.

"I am moving freely around my forces, I am present in Bahri, I am present in Omdurman, I am present in Khartoum, I am present in Sharq al-Nil," Hemedti said. "They are spreading rumours that Mohamed Hamdan has been killed, and these are all lies that show that they are being defeated ... 'FALLING APART'Residents report a rise in looting and lawlessness after police vanished from the streets at the outset of the conflict. On Monday an employee of Sharq el-Nil hospital said the southern part of the facility had been hit by an air strike. On Sunday Burhan froze the bank accounts of the RSF and affiliated firms, and replaced the central bank governor.

☆ G-7 central banks see need to weigh effects of past rate hikes, BOJ's Ueda says
▼ + stars: | 2023-05-13 | by ( ) www.cnbc.com time to read: +1 min

Governor of the Bank of Japan Kazuo Ueda speaks during the presidency press conference at the G7 Finance Ministers and Central Bank Governors' Meeting in Niigata on May 13, 2023. Many central bank governors from the Group of Seven (G-7) rich nations appeared to feel the impact of past interest rate hikes has yet to show fully as they look to guide future monetary policy, Bank of Japan Governor Kazuo Ueda said on Saturday. "Many said they wanted to guide monetary policy, taking that point in mind," he added. "I told the G7 meeting that Japan is maintaining ultra-loose monetary policy to sustainably and stably achieve the BOJ's 2% inflation target," he said. Ueda and Finance Minister Shunichi Suzuki spoke at the news conference as Japan is the chair of this year's G7 finance leaders' gathering in Niigata, which concluded on Saturday.

☆ G-7 finance chiefs warn of global uncertainty as US debt crisis looms
▼ + stars: | 2023-05-13 | by ( ) www.cnbc.com time to read: +2 min

Janet Yellen, US Treasury secretary, right, and Jeremy Hunt, UK finance minister, left, during a bilateral meeting on the sidelines of the Group of Seven (G-7) finance ministers and central bank governors meeting in Niigata, Japan, on Saturday, May 13, 2023. Finance leaders of the Group of Seven (G-7) rich nations warned of heightening global economic uncertainty on Saturday as they wrapped up a three-day meeting overshadowed by a U.S. debt ceiling stalemate and fallout from Russia's invasion of Ukraine. G-7 central bank chiefs also vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook." Japanese Finance Minister Shunichi Suzuki told a press conference after chairing the meeting that the debt ceiling showdown was discussed at Thursday's dinner session on the global economy.

☆ Yellen expects US regulators to be open to mergers among midsize banks
▼ + stars: | 2023-05-13 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

... Read moreNIIGATA, Japan, May 13 (Reuters) - The current banking environment and pressures on earnings of some U.S. regional banks may lead to some concentration in the sector, and regulators will likely be open to such mergers, Treasury Secretary Janet Yellen said on Saturday. Yellen told Reuters she was not seeing evidence of pressure on smaller community banks, which had a large percentage of insured deposits. She expressed confidence that nearly all banks had access to sufficient liquidity to guard against unexpected deposit outflows from uninsured depositors. However, she said a certain degree of consolidation in the regional and midsize banking sector could occur. Yellen noted that pressure on a bank's stock could unsettle uninsured depositors.

☆ G7 central banks see need to weigh effects of past rate hikes -BOJ's Ueda
▼ + stars: | 2023-05-13 | by ( Leika Kihara | ) www.reuters.com time to read: +1 min

NIIGATA, Japan, May 13 (Reuters) - Many central bank governors from the Group of Seven (G7) rich nations appeared to feel the impact of past interest rate hikes has yet to show fully as they look to guide future monetary policy, Bank of Japan Governor Kazuo Ueda said on Saturday. "Participants seemed to share the understanding that the effect of past interest rate hikes has yet to fully show on their economies and inflation, and could begin to appear more ahead," Ueda told a news conference after the gathering. "Many said they wanted to guide monetary policy, taking that point in mind," he added. "I told the G7 meeting that Japan is maintaining ultra-loose monetary policy to sustainably and stably achieve the BOJ's 2% inflation target," he said. Ueda and Finance Minister Shunichi Suzuki spoke at the news conference as Japan is the chair of this year's G7 finance leaders' gathering in Niigata, which concluded on Saturday.

☆ Debt in advanced economies is piling on to global challenges, says World Bank president
▼ + stars: | 2023-05-12 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Developed economies across the world are facing a debt problem, and that's piling onto other headaches in the global economy as central banks continue to grapple with persistent inflation, according to World Bank President David Malpass. Speaking to CNBC's Martin Soong at the G-7 finance ministers and central bank governors' meeting in Japan, Malpass emphasized that record-high global debt levels need to be addressed for stability. "The debt-to-GDP ratios for the advanced economies are higher than ever before," he said, adding that developing countries are also facing a similar issue. The World Bank has emphasized the need for transparency in addressing rising debt in the face of a number of global economic issues, including stress in the banking sector and sticky inflation. The organization last month chaired the Global Sovereign Debt Roundtable in Washington D.C. and highlighted its call for information sharing to speed up the process of debt restructuring in the world.

☆ G7 to vow diversifying of supply chains, filling bank regulatory gaps -draft
▼ + stars: | 2023-05-12 | by ( ) www.reuters.com time to read: +4 min

In the draft communique, the G7 central banks said they remained "strongly committed" to achieving price stability and ensuring inflation expectations stayed well-anchored. "Diversification of supply chains can contribute to safeguarding energy security and help us to maintain macroeconomic stability," the draft communique said. But it said G7 countries will work to ensure foreign investment in critical infrastructure "does not undermine the economic sovereignty of host countries." On banking-system woes, the draft communique said the financial system was resilient due to regulatory reforms implemented after the 2008 global financial crisis. "We will address data, supervisory, and regulatory gaps in the banking system," the draft communique said.

☆ Yellen says it should be 'unthinkable' for the U.S. to default on its debt
▼ + stars: | 2023-05-11 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

Treasury Secretary Janet Yellen said the idea of U.S. lawmakers letting the nation default on its debt should be "unthinkable." Speaking to reporters ahead of the G-7 finance ministers and central bank governors meetings in Niigata, Japan, Yellen said she was aware of former President Donald Trump's suggestion for Republican lawmakers to let the nation default. "The notion of defaulting on our debt is something that would so badly undermine the U.S. and global economy that I think it should be regarded by everyone as unthinkable," she told reporters. When asked about steps the Biden administration could take in the wake of a default, Yellen emphasized that lawmakers must raise the debt ceiling. The U.S. Congress has raised or suspended the debt limit almost 80 times since 1960.

Persons: Janet Yellen, Yellen, Donald Trump's, Biden Organizations: U.S, Congress Locations: Niigata, Japan, U.S, America

☆ Yellen, at G7, to underscore U.S. commitment to Ukraine for 'as long as it takes'
▼ + stars: | 2023-05-11 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

REUTERS/Issei KatoNIIGATA, Japan, May 11 (Reuters) - Treasury Secretary Janet Yellen on Thursday will underscore the United States' commitment to continue supporting Ukraine for as long as needed, while working with other rich nations to degrade Russia's ability to wage war against its neighbor. "I look forward to coordinating with other G7 members to support Ukraine and degrade Russia’s ability to wage war," she said in the remarks released by Treasury as the war approaches its 450th day. "Since Day One, our countries have stood united to support the Ukrainian people as they have mounted a fierce resistance," she said. Yellen also said caps on the price of Russian oil and oil products, discussed by G7 finance ministers for the first time just a year ago, were clearly working just a few months after its implementation in December and February, respectively. While the price cap coalition was moving to phase out all imports of Russian oil, officials were urging developing countries "to save on their oil costs by taking advantage of the price cap to negotiate steep bargains on Russian oil," she said.

She will warn about "the global impact of this standoff and highlight the need to avoid default," a senior Treasury official said. It will lead to a freeze in global financial markets," said Muehleisen, now a fellow with the Atlantic Council. G7 counterparts will question Yellen "about the financial stability risks in the U.S., the regional banks' exposure to commercial real estate. Real risks that are not manufactured for political posturing," said Stephanie Segal, a former U.S. Treasury official who is a senior fellow at the Center for Strategic and International Studies in Washington. The far more complicated "Pillar 1" plan to allow countries to tax global technology giants and other highly profitable corporations on their local sales is still under negotiation.

Violent clashes between supporters of Imran Khan and police broke out across the country after Pakistan's anti-corruption agency arrested the former prime minister on Tuesday. Pakistan's rupee has lost nearly 50% over the past 12 months. JPMorgan analyst Milo Gunasinghe said little relief from political uncertainty was in sight while the IMF programme remained stalled. "It is usually up to the country to present a credible plan of policies and financing that, in the face of political uncertainty, will credibly address the members’ balance of payment problems." The armed forces remain Pakistan's most powerful institution, having ruled directly for close to half the country's 75-year history through three coups.

☆ South African rand pauses after steep fall; focus on U.S. CPI
▼ + stars: | 2023-05-10 | by ( ) www.reuters.com time to read: +1 min

JOHANNESBURG, May 10 (Reuters) - The South African rand was little changed in early trade on Wednesday after a steep fall the previous day, with global market attention firmly pinned on U.S. inflation figures due later in the day. At 0545 GMT the rand traded at 18.6425 against the U.S. currency , not far from its previous close of 18.6375. The risk-sensitive rand lost more than 1.6% against the greenback on Tuesday, as caution built ahead of Wednesday's U.S. Consumer Price Inflation (CPI) print scheduled for 1230 GMT. Economists expect the headline CPI to hold steady at an annual 5% and core CPI to moderate very slightly to 5.5%, though anything stickier could confound bets interest rates will fall. Among local drivers, South Africa's central bank governor Lesetja Kganyago will from 0900 GMT deliver a lecture on the topic: "Challenges facing the global economy: A South African Perspective".

☆ Rio de Janeiro to host G20 summit in 2024
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +1 min

RIO DE JANEIRO, May 9 (Reuters) - The world' largest economies grouped in the G20 will hold their annual heads of state or government summit next year in Rio de Janeiro, state Governor Claudio Castro said. Brazil will take over the rotating presidency of the G20 from India on Dec. 1. It will be the largest event in Rio since the city hosted the Olympic Games in 2016 and the World Cup soccer final in 2014. The G20 represents around 85% of the global GDP, over 75% of global trade and about two-thirds of the world's population. The G20 was started two decades ago to include important emerging economies in discussions that had been confined to the Group of Seven industrialized economies.

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