DIRS.INFO The most relevant business & tech news

☆ World Bank's Banga says geopolitics pose biggest, but not the only, risk to world economy
▼ + stars: | 2023-10-24 | by ( Jorgelina Do Rosario | Thomson Reuters | Jorgelina Do Rosario Is Emerging Markets Correspondent At Reuters Based In London | ) www.reuters.com time to read: +1 min

LONDON, Oct 24 (Reuters) - Geopolitical tensions heightened by the Middle East conflict pose the biggest threat to the world economy right now but other risks are also at play, World Bank President Ajay Banga said on Tuesday. So yes, that is right there lurking in the shadows," Banga said, referring to a rise in the benchmark for borrowing costs around the world which further threaten an economic slowdown. Banga said that while everything in the developed world looks better than had been expected some time ago, "I think that we're at a very dangerous juncture." He said private sector investment is needed in developing economies but political risks in some of these countries remain a barrier. There is not enough money in government coffers or even in the multilateral development banks, we need to involve the private sector with their capital," he said.

Persons: Ajay Banga, Banga, Jorgelina, Karin Strohecker, Mike Harrison, Susan Fenton Organizations: World, Treasury, Future Investment Initiative, Thomson Locations: Riyadh, Israel, Gaza, Rosario

☆ ANALYST VIEW Argentina vote headed for runoff between ruling Peronist and radical Milei
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +2 min

[1/2] Argentina's presidential candidate Sergio Massa addresses supporters as he reacts to the results of the presidential election, in Buenos Aires, Argentina October 22, 2023. REUTERS/Mariana Nedelcu Acquire Licensing RightsLONDON, Oct 23 (Reuters) - A stronger-than-expected showing by Argentina's ruling Peronist coalition at a general election on Sunday has set the stage for a run-off vote on Nov. 19 between Economy Minister Sergio Massa and far-right radical Javier Milei. First, any announcements by the two candidates advancing to the second round. MARIANO MACHADO, PRINCIPAL AMERICAS ANALYST, VERISK MAPLECROFT, MALAGA"It is true that in the first round, societal mood shied away from radical change; but in the second round, pro-change voters may shift to Milei to oust Kirchnerism from power." The combination of a libertarian candidate pushing for dollarisation, with minister Massa hiking the money-printing machine to produce a political miracle for ‘candidate’ Massa could finally push macroeconomic variables off the cliff’s edge."

Persons: Sergio Massa, Mariana Nedelcu, Argentina's, Javier Milei, SERGIO ARMELLA, GOLDMAN SACHS, Massa, Milei, DIEGO W, PEREIRA, Patricia, Bullrich’s, Juan, MARIANO MACHADO, VERISK, Kirchnerism, ’ Massa, Karin Strohecker, Kirsten Donovan, Bernadette Baum Organizations: REUTERS, Peronist, JPMORGAN, NEW, Thomson Locations: Buenos Aires, Argentina, AMERICAS, VERISK MAPLECROFT, MALAGA, Rosario

Investors arrive to the election looking at an economy in recession as a crippling drought hit the key agricultural sector. The gap to the official rate is above 150%. On the line is the survival of the country's $43 billion program with the International Monetary Fund and the possibility that Argentina defaults on its debt for a 10th time. "Dollarization would not cure the main issue in Argentina, which is a really large fiscal problem." "Debt does not need to be an immediate priority," said Khan, who doesn't expect dollarization to top the near-term list either.

Persons: Patricia Bullrich, Martin Cossarini, Javier Milei, Sergio Massa, Alejandro di Bernardo, Bernardo, Milei, Massa, Gabriel Rubinstein, Elijah Oliveros, Rosen, Zulfi Ali, Shamaila Khan, Khan, Hans Humes, Humes, Rodrigo Campos, Karin Strohecker, Susan Fenton Organizations: el Cambio, REUTERS, NEW, International Monetary Fund, Jupiter Asset, Bullrich, WE, JPMorgan, China, Institute of International Finance, IMF, America, PGIM, Oxford Economics, Reuters, Emerging Markets, Asia Pacific, UBS Asset Management, Massa, Greylock Capital Management, Thomson Locations: Buenos Aires, Argentina, Washington

A construction site of residential buildings by Chinese developer Country Garden is pictured in Tianjin, China August 18, 2023. REUTERS/Tingshu Wang/File Photo Acquire Licensing RightsSYDNEY/LONDON, Oct 19 (Reuters) - A major group of Country Garden (2007.HK) offshore bondholders has appointed PJT Partners (PJT.N) as financial advisors to lead discussions with the troubled Chinese property developer, according to two sources with knowledge of the matter. Bondholders have been seeking urgent talks with the company since it missed a $15 million coupon repayment on Wednesday, putting it at risk of default. Country Garden did not immediately respond to a request to comment made outside of business hours. Reporting Scott Murdoch in Sydney and Anousha Sakoui in London, editing by Karin StroheckerOur Standards: The Thomson Reuters Trust Principles.

Persons: Tingshu Wang, PJT, Scott Murdoch, Anousha, Karin Strohecker Organizations: REUTERS, Rights, PJT Partners, Thomson Locations: Tianjin, China, LONDON, HK, Sydney, London

☆ Analysis: EUphoria! Poland election surprise spurs investor hope
▼ + stars: | 2023-10-16 | by ( Marc Jones | ) www.reuters.com time to read: +4 min

Donald Tusk, leader of the largest opposition grouping Civic Coalition (KO), delivers a speech after the exit poll results are announced in Warsaw, Poland, October 15, 2023. As Europe’s sixth-largest economy, a revitalised pro-EU attitude in Poland would be particularly welcome. The 66-year old Tusk and his pro-EU coalition allies may still have to wait weeks or even months though before getting a turn at forming a government. Duda has referred the issue at the heart of that row to a constitutional tribunal in Poland. The central bank though has slashed interest rates at its last two meetings as the election campaign burst into life.

Persons: Donald Tusk, Kacper, Poland's, Daniel Moreno, Mirabaud, PiS, Moreno, Hungary's Viktor Orban, Robert Fico, Tusk, Andrzej Duda, Duda, Viktor Szabo, Fitch, Szabo, Adam Glapinski, PiS ., Simon Quijano, Evans, Libby George, Karin Strohecker, Josie Kao Organizations: Civic Coalition, REUTERS, European Union, Law and Justice, European, EU, Brussels, PiS, Gemcorp, Ukraine, Reuters, Thomson Locations: Warsaw, Poland, Brussels, Europe, EU, Slovakia, Britain, London

[1/2] Shadow of the supporter is pictured during the election convention of Law and Justice (PiS) party, before Sunday's parliamentary elections, in Przysucha, Poland October 9, 2023. "It is the most important election we have this year in Europe," said Viktor Szabo, portfolio manager at asset manager abrdn, adding markets had not priced in scenarios such as a hung parliament or the possibility of an early election. Such a scenario would be a key positive for both the currency and Polish equities, said Anna Zadornova, an economist at UBS. "Ultimately there is a point where you need to yield to the economics and how things are going," said Kaan Nazli, a portfolio manager at Neuberger Berman. ($1 = 0.9461 euros)Reporting by Karin Strohecker and Marc Jones, editing by Alexander SmithOur Standards: The Thomson Reuters Trust Principles.

Persons: Kacper, Viktor Szabo, Szabo, PiS, Daniel Wood, William Blair, Anna Zadornova, Banks, Morgan, Goldman Sachs, Adam Glapinski, Kaan Nazli, Neuberger Berman, Karin Strohecker, Marc Jones, Alexander Smith Organizations: Law, Justice, REUTERS, LONDON, abrdn, European Union, JPMorgan, Reuters Graphics EU, EU, liberal Civic Coalition, UBS, Poland's, Copley Fund, Reuters, Thomson Locations: Przysucha, Poland, Europe, loggerheads, Brussels, Romania, Hungary

☆ Take Five: War and peace of mind
▼ + stars: | 2023-10-13 | by ( ) www.reuters.com time to read: +5 min

[1/2] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. U.S. retail sales increased more than expected in August as a surge in gasoline prices boosted receipts at service stations. Bar chart with data from LSEG I/B/E/S show the projected year-over-year growth in Q3 2023 earnings of S&P 500 industries. There have been reports the government is looking to increase its budget deficit to meet this year's 5% growth target. That said, inflation is still over three times the BoE's 2% target and growth isn't exactly stellar.

Persons: Brendan McDermid, Kevin Buckland, Lewis Krauskopf, Naomi Rovnick, Karin Strohecker, Amanda Cooper, Goldman Sachs, Johnson, Philip Morris, It's, Banks, Amundi, BoE, it's, Sumanta Sen, Prinz Magtulis, Vineet, Pasit, Jayaram, Mark Potter Organizations: New York Stock Exchange, REUTERS, Hamas, Bank of America, Johnson, Netflix, Philip Morris International, Investors, HK, Law, Justice, Reuters, The Bank of England, Thomson Locations: New York City, U.S, Israel, Palestinian, China, Britain, Tokyo, New York, London, LSEG, Beijing, Europe's, Brussels, Europe

"We would like to start as quickly as possible," he said of the buyback. Exceptional access would allow Kenya to ask for more than its limit of IMF funding. As of Oct. 5, the central bank said it had $6.9 billion in usable foreign exchange reserves, enough to cover around 3.7 months' worth of imports. The central bank held its main interest rate (KECBIR=ECI) at 10.5% on Oct. 3. Despite Kenya's debt pressures, the economy is set to grow 5.5% this year and around 6% in 2024, Thugge said, above the IMF forecasts for Sub-Saharan Africa of 3.3% and 4% respectively.

Persons: Kamau Thugge, Thugge, Rachel Savage, Jorgelina, Duncan Miriri, Karin Strohecker, Elisa Martinuzzi, Jan Harvey Organizations: Reuters, Trade, Development Bank, African Export, Import Bank, World Bank, International Monetary Fund, Thomson Locations: MARRAKECH, Morocco, Kenya, Marrakech, Saharan Africa, Rosario, Nairobi

☆ Israel raises $200 mln in bonds, debt insurance costs surge
▼ + stars: | 2023-10-12 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Nir Elias/Illustration Acquire Licensing RightsLONDON, Oct 12 (Reuters) - Israel has raised $200 million from diaspora bond sales since the war with Hamas began, Israel Bonds said in a statement. The group, the government's vehicle for diaspora bonds, said that U.S. state and local governments accounted for $150 million of the purchases. "The response across many U.S. states was immediate and demand exceeded the amount of Israel bonds that we were able to sell at that time," Dani Naveh, president at Israel Bonds, said in a statement. Israel Bonds said it had nearly reached its standard annual goal to raise $1 billion before the war began. As of Dec. 31, it had $5.4 billion worth of outstanding bonds, representing approximately 12% of Israel's external governmental debt.

Persons: Nir Elias, Israel Bonds, Dani Naveh, Libby George, Karin Strohecker, Emelia Organizations: REUTERS, Hamas, Israel, Palestinian, P Global Market Intelligence, Thomson Locations: Israel, U.S

☆ IMF says Sri Lanka debt talks ongoing, unaware of specific deals
▼ + stars: | 2023-10-11 | by ( Jorgelina Do Rosario | Thomson Reuters | Jorgelina Do Rosario Is Emerging Markets Correspondent At Reuters Based In London | ) www.reuters.com time to read: +3 min

A general view of the main business district as rain clouds gather above in Colombo, Sri Lanka, November 17, 2020. Peter Breuer told Reuters on the sidelines of the World Bank IMF annual meetings in Marrakech that talks between Sri Lanka and all its creditors were ongoing. "We will need to assess the entire package of agreements in its totality to assess consistency with IMF debt targets," Breuer said. Sri Lanka, mired in its worst economic crisis in 70 years, is in debt restructuring talks with a range of creditors, including China, its largest single creditor. Sri Lanka owed Exim $4.1 billion, or 11% of it foreign currency debt, at the end of 2022.

Persons: Dinuka, Peter Breuer, Breuer, Ranjith Siyambalapitiya, Jamie Fallon, Rosario, Libby George, Karin Strohecker, John Stonestreet, Nick Macfie Organizations: REUTERS, Rights, Monetary Fund, Sri, Reuters, World Bank IMF, Export, Import Bank of, Paris Club, Tellimer Research, Thomson Locations: Colombo, Sri Lanka, Rights MARRAKECH, China, Marrakech, Import Bank of China, Japan, India, France

☆ Israel shekel sinks to lowest since 2016, default insurances soars
▼ + stars: | 2023-10-10 | by ( ) www.reuters.com time to read: +2 min

New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. The weekend attack and retaliatory strikes by Israel have claimed more than 1,500 lives, raising fears the region could face a prolonged wave of conflict and violence. Stocks, bonds and currencies of Israel and neighbouring countries such as Lebanon, Jordan and Egypt have come under severe pressure in recent days. The Bank of Israel announced on Monday it would sell up to $30 billion of foreign currency in the open market to stabilise the currency. Reporting by Karin Strohecker and Amanda Cooper; Graphic by Marc Jones, Editing by Christina FincherOur Standards: The Thomson Reuters Trust Principles.

Persons: Nir Elias, JPMorgan's Zafar Nazim, Karin Strohecker, Amanda Cooper, Marc Jones, Christina Fincher Organizations: REUTERS, P Global Market Intelligence, Bank of Israel, Reuters Graphics JPMorgan, Gulf Corporation, Key Tel, Thomson Locations: Israel, Lebanon, Jordan, Egypt, Gulf, Key Tel Aviv

☆ Take Five: Volatile start to busy week
▼ + stars: | 2023-10-09 | by ( ) www.reuters.com time to read: +6 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsOct 9 (Reuters) - Financial markets have got off to a volatile start to the week, after Hamas militants launched an assault on Israel at the weekend, triggering violent conflict that left hundreds dead. A bond market rout last week and currency gyrations already had financial markets on edge ahead of U.S. inflation numbers and the start of earnings season. Here's your week ahead in markets from Kevin Buckland in Tokyo, Lewis Krauskopf in New York, Rachel Savage in Johannesburg, and Naomi Rovnick and Dhara Ranasinghe in London. Amid these tensions, the IMF and World Bank are trying to boost their lending.

Persons: Brendan McDermid, gyrations, Kevin Buckland, Lewis Krauskopf, Rachel Savage, Naomi Rovnick, Wells, LSEG IBES, Rishi Sunak's, Sumanta Sen, Pasit, Vineet, Karin Strohecker, Kim Coghill Organizations: New York Stock Exchange, REUTERS, Financial, World Bank, International Monetary Fund, Labour, JPMorgan, Citigroup, PepsiCo, Delta Air Lines, UnitedHealth, Reuters, LABOUR, Conservative, Labour Party, MOROCCO Finance, Monetary Fund, U.S, Bretton Woods, IMF, Thomson Locations: New York City, U.S, Israel, Tokyo, New York, Johannesburg, London, Central, Morrocan, Marrakech, China

Ukrainian 500 hryvnia banknotes and a U.S. 100 dollar banknote are seen in this picture illustration taken in Kiev, Ukraine, October 31, 2016. But concerns that international backing for Ukraine may be waning and few indications that the conflict is close to abating have brought fresh momentum into debt talks, the sources said. Most of Ukraine's bilateral lenders have suspended repayment obligations until 2027 - and some analysts had expected Ukraine might ask its bondholders for a matching extension. FROM DEBT REWORK TO FRESH FUNDSAs part of a debt restructuring, Ukraine would issue new bonds to existing holders once losses on existing debt had been agreed upon. In addition to issuing bonds as part of the debt restructuring, Ukraine also told investors it is weighing options to raise fresh additional financing, the sources said.

Persons: Valentyn, Yuri Butsa, Butsa, Brady, Karin Strohecker, Olena, Philippa Fletcher Organizations: REUTERS, Kyiv, International Monetary Fund, Bank, Monetary Fund, Fund, U.S, Thomson Locations: U.S, Kiev, Ukraine, Israel, Gaza, Marrakech, Rosario, London, Kyiv

How the $13 trillion economy's slowdown will affect other emerging markets is still an unanswered question for investors. "Lower for longer Chinese growth is shaping a new regime of investments," Amundi's head of emerging markets Yerlan Syzdykov told Reuters. The World Bank trimmed its 2024 China growth forecast to 4.4% from 4.8%. 6/DEVELOPING REFORMThe World Bank, IMF and other multilateral development banks are under pressure to boost lending to poorer countries to fund development and tackle climate change. China and other large emerging economies have long demanded a greater say in the global financial architecture, which is still dominated by parameters set out by the 1944 Bretton Woods meeting, where the IMF and World Bank were established.

Persons: Abdelhak, Joseph Cuthbertson, Syzdykov, Anna Gelpern, Gregory Smith, Smith, Mehmet Simsek, Tayyip Erdogan, Erdogan, drubbing, Timothy Ash, Jorgelina, Rosario, Rachel Savage, Marc Jones, Karin Strohecker, Christina Fincher Organizations: International Monetary Fund, World Bank, Palais des, REUTERS, Federal Reserve, International Monetary, PineBridge Investments, Reuters, Bank, Ukraine, U.S, Kyiv, Paris Club, IMF, American, London, G Investments, JPMorgan, Egypt IMF, Fitch, Reuters Graphics Reuters, Finance, BlueBay Asset Management, Thomson Locations: Palais, Palais des Congres, Marrakech, Morocco, Argentina, Pakistan, Kenya, Egypt, CHINA, China, UKRAINE, Ukraine, Zambia, Sri Lanka, Ghana, Georgetown, Nigeria, TURKEY, Ankara, New York, Washington, London, Woods

Why are global bond yields rising? With inflation excluding food and energy prices elevated and the U.S. economy resilient, central banks are pushing back against rate cut bets. Many investors were also betting bond yields would drop, so are extra sensitive to moves in the opposite direction, analysts say. That is no surprise, and analysts do not rule out a rise in 10-year Treasury yields to 5%, from 4.7% now . Bond yields determine governments' funding costs, so the longer they stay high, the more they feed into the interest costs countries pay.

Persons: Brendan McDermid, August's, Goldman Sachs, Mahmood Pradhan, Treasuries, Andrea Kiguel, Yoruk, Dhara Ranasinghe, Karin Strohecker, Marc Jones, Amanda Cooper, Ed Osmond Organizations: New York Stock Exchange, REUTERS, U.S . Treasury, August's Fitch, Reuters, Treasury, Deutsche Bank, Amundi Investment, U.S, JPMorgan, Barclays, Yoruk Bahceli, Thomson Locations: New York City, U.S, Germany, Japan, Italy, Europe, Americas, Amsterdam, London

A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. Markets have seen some seismic shifts in recent weeks after being forced to adjust to the 'higher for longer' mantra propagated by major central banks. "I don't think we're back to the point where these central banks will start tightening again..but if you are a central banker, especially of an oil importing country, you do become more cautious." On the other hand, a select number of central banks in emerging markets were still in hiking mode. Turkey, which is struggling with inflation pressures and a currency that is sliding from one record low to the next, delivered another bumper 500 bps rate hike.

Persons: Heiko Becker, Bjoern, Kaan Nazli, Neuberger Berman, Karin Strohecker, Sumanta Sen, Christina Fincher Organizations: European Central Bank, REUTERS, U.S . Federal Reserve, Bank of England, ECB, DWS, Reuters, Thomson Locations: Frankfurt, Germany, Central, America, Europe, Sweden, Norway, Australia, Canada, Japan, Brazil, Chile, Poland, Hungary, Turkey, Russia, Thailand, London, Mumbai

☆ Take Five: Roll on Q4!
▼ + stars: | 2023-09-29 | by ( ) www.reuters.com time to read: +5 min

A possible shutdown would be further evidence of how political polarization in Washington is weakening fiscal policymaking, Moody's says. Economists polled by Reuters expect the U.S. economy created 150,000 jobs in September versus 187,000 in August. 2/ NEW CHIEF IN TOWNThe Reserve Bank of Australia's new governor Michele Bullock, the first woman to head the bank, chairs her first meeting on Tuesday. Meanwhile, New Zealand's Reserve Bank meets on Wednesday. With the cost of living a key election battleground, the drastic cut brings relief to those struggling with mortgage repayments.

Persons: Andrew Kelly, Ira Iosebashvili, Kevin Buckland, Harry Robertson, Karin Strohecker, Marc Jones, Joe Biden, Moody's, Michele Bullock, Bullock, Adam Glapinski, Dhara Ranasinghe, Sonali Paul Organizations: REUTERS, ., China, Democratic, Reuters, Reserve Bank of, New, Reserve Bank, Reuters Graphics Reuters, Equity, Treasury, Reserve, ING reckons, Thomson Locations: Manhattan , New York City, U.S, there's, Australia, Poland, Ira, New York, Tokyo, London, Washington, China, Beijing, Poland's

☆ Russia ramps up China yuan payments for imports amid sanctions -EBRD
▼ + stars: | 2023-09-27 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +2 min

"After Russia’s full-scale invasion of Ukraine in February 2022 and the imposition of economic sanctions by the EU, US and a number of other advanced economies, Russian imports became increasingly invoiced in yuan," according to the paper led by economists Maxim Chupilkin and Beata Javorcik. The use of the Chinese yuan for trade with Russia has also increased for third countries that did not impose economic sanctions but hold a currency swap line with the People's Bank of China (PBOC), such as Mongolia and Tajikistan. Overall, economic sanctions could herald a gradual shift away from the U.S. dollar, the study said. "The dominance of the U.S. dollar makes international sanctions more effective, as firms engaged in international trade overwhelmingly require payments to be cleared through the U.S. banking system," the authors found. "At the same time, the use of economic sanctions may over time reduce attractiveness of the U.S. dollar as a vehicle currency and hence its dominance."

Persons: Maxim Chupilkin, Beata Javorcik, SWIFT, Jorgelina, Karin Strohecker, Philippa Fletcher 私 Organizations: European Bank for Reconstruction, EU, U.S, People's Bank of China, U.S . Locations: Ukraine, China, Russia, Mongolia, Tajikistan, Russian, Rosario

Turkey still has $2.5 billion earmarked in its budget for issuance this year - but could possibly go further than that, JPMorgan's Weiler told Reuters. Markets are expecting Turkey to come to market within days, though some are pointing to a country ratings review by S&P Global Ratings scheduled for Friday. Domestic appliance maker Arcelik last week became the first Turkish corporate to launch an international bond since January 2022. September is generally a busy month for emerging market issuers, though adding to the momentum was increasing risk appetite from investors, he said. Reporting by Karin Strohecker and Jorgelina do Rosario in London; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Persons: Stefan Weiler, Tayyip Erdogan, JPMorgan's Weiler, Weiler, Erdogan, Mehmet Simsek, Hafize Gaye Erkan, Fitch, " Weiler, Karin Strohecker, Jacqueline Wong Organizations: JPMorgan, Reuters, Wall Street, Turkiye, . Treasury, Thomson Locations: Ankara, Turkey, Africa, Rosario, London

☆ Take Five: An inflationary dilemma
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +5 min

The week ahead brings more evidence of how much progress is left for developed-economy policymakers, while in the emerging world, India is set to enter the bond-market big time and a raft of central banks wrestle with a dilemma. The personal consumption expenditures (PCE) price index rose 3.3% in the 12 months through July. Line chart with data from LSEG Datastream show the U.S.'s inflation on personal consumption expenditures (PCE), core PCE inflation and the federal funds target rate from 2019 to 2023. Reuters Graphics5\ASIA'S CURRENCY CONUNDRUMAsian central banks have a dilemma: how to handle weakening economic growth and peaking inflation, while arresting the slide in currencies to maintain stability in their financial systems. But much may rest on decisions of other central banks further afield, namely the Federal Reserve.

Persons: Lewis Krauskopf, Naomi Rovnick, Karin Strohecker, Amanda Cooper, Perry Warjiyo, Toby Chopra Organizations: Federal, Fed, European Central Bank, ECB, Reuters, CLUB India, JPMorgan, Russell, Bank of, Bank, Thailand, Reserve, Thomson Locations: India, Vidya Ranganathan, Singapore, New York, London, Washington, U.S, Saudi Arabia, Russia, Bank of Indonesia, Philippine

☆ Counting the cost of contagion fears from Africa coups
▼ + stars: | 2023-09-21 | by ( Libgeorge Marc Jones | Marc Jones | ) www.reuters.com time to read: +5 min

Gabon coup leader General Brice Oligui Nguema is sworn in as interim president during his swearing-in ceremony, in Libreville, Gabon, September 4, 2023. The putsch not only sent Gabon's bonds tumbling 10%, but also hit those issued by a number of other countries including neighbouring Cameroon, as jittery investors scanned for who might be next. The apparent coup trend is adding to other major concerns deterring many investors from Africa - a wave of debt crises, tense geopolitics and an extreme vulnerability to climate change. "Nearly all markets in that region are paying some price in terms of rising cost of debt," said Sergey Dergachev, portfolio manager at Union Investment. There have been scores of coups and attempted coups in recent decades including in Thailand, Ecuador, Egypt and Turkey.

Persons: General Brice Oligui Nguema, Stringer, Sergey Dergachev, Paul Biya, Macky Sall, Denis Sassou Nguesso, Eamon Aghdasi, Fitch, Moody's, Thailand's, Ravi Bhatia, Bongo, Simon Quijano, Evans, Libby George, Marc Jones, Karin Strohecker, Emelia Sithole Organizations: REUTERS, UNDP, Union Investment, Investors, Reuters, General Assembly, Burkina, P Global, Reuters Graphics, Monetary Fund, Central, CFA, Peace, Thomson Locations: Gabon, Libreville, Africa Mali, Guinea, Africa, Cameroon, Mali, Thailand, Ecuador, Egypt, Turkey, crackdowns, Senegal, Congo Republic, New York, Niger, Burkina Faso, Kenya

The financial services trade group said in a report that global debt in dollar terms had risen by $10 trillion in the first half of 2023 and by $100 trillion over the past decade. It said the latest increase has lifted the global debt-to-GDP ratio for a second straight quarter to 336%. Prior to 2023, the debt ratio had been declining for seven quarters. Slower growth, alongside a deceleration in price increases, were behind the debt ratio rise, the report said. "As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase," the IIF said.

Persons: Florence Lo, Rodrigo Campos, Karin Strohecker, Alexander Smith Organizations: U.S, REUTERS, Institute of International Finance, Reuters, Federal, Thomson Locations: United States, Japan, Britain, France, China, India, Brazil, Korea, Thailand, U.S

☆ Take Five: A central bank bonanza
▼ + stars: | 2023-09-18 | by ( ) www.reuters.com time to read: +5 min

Now it's the turn of the world's most important central bank. Also on Thursday, the Bank of England is tipped to hike for the 15th consecutive meeting, taking benchmark borrowing costs to 5.5%. Norway's central bank is also expected to nudge benchmark borrowing costs higher, following a 25 bps rise in August to 4%. Reuters Graphics4/ DIVERGING TRAJECTORIESThe push and pull factors on central banks are nowhere more visible than in emerging markets. But for Turkey's central bank, convening on Thursday, the only way is up.

Persons: Lewis Krauskopf, Kevin Buckland, Amanda Cooper, Naomi Rovnick, Karin Strohecker, Jerome Powell, Kazuo Ueda, Ueda, hypothesise, Tayyip Erdogan, Mark Heinrich Our Organizations: U.S . Federal, ECB, Bank of England, Reuters, Bank of Japan, Japan's, of Finance, Thomson Locations: Central, Lewis, New York, Tokyo, London, United States, Europe, Scandinavia, Switzerland, Norway's, Latin America, South Africa, Egypt, Taiwan

☆ IMF's Argentina predicament: Seek reforms and tango on or kill the music
▼ + stars: | 2023-09-15 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +7 min

But that programme failed to put South America's second-largest economy back on its feet. Even if he wins the Oct. 22 election and takes power in December, Milei would need alliances in Congress to push through reforms and a new IMF programme - Argentina's 23rd. That effort paved the way for the $57 billion programme, which ultimately failed and was replaced by the current one. Reuters Graphics Reuters GraphicsPREFERENTIAL TREATMENTThe current programme could end before its expiration in September 2024, but Argentina will still require funds. Without mentioning Argentina, the U.S. - holding the largest voting power in the Fund - recently raised its concerns.

Persons: Javier Milei, Agustin Marcarian, Mauricio Macri's, Mark Sobel, Milei, Sobel, Sergio Massa, Martin Muehleisen, Muehleisen, Nestor Kirchner, Stephen Nelson, Nelson, Walter Stoeppelwerth, Simon Quijano, Evans, Gemcorp Capital, Jay Shambaugh, Jorgelina, Karin Strohecker, Paul Simao Organizations: Argentine, La Libertad Avanza, REUTERS, IMF, International Monetary Fund, South, Peronist, Analysts, Graphics, Review Department, U.S ., Northwestern University, Reuters Graphics Reuters, Gletir SA, Gemcorp, Thomson Locations: La Plata, Buenos Aires, Argentina, Washington, U.S, Chicago, Zambia, Sri Lanka, Ghana, Egypt, Burundi, Saharan Africa, Rosario

Two of them - Norway and United Kingdom - delivered a total of 50 basis points of rate hikes in the lowest such tally since January. Turkey delivered a super-sized 750 bps rate rise in August while Russia lifted its benchmark by 350 bps and Thailand added 25 bps. "Major central banks will maintain a restrictive policy stance through 2024," said Madhavi Bokil, senior vice president strategy and research at Moody's. "Significant easing by emerging market central banks is unlikely with advanced economy central banks still battling elevated inflation, and uncertainty around the U.S. interest rate outlook." Emerging markets interest ratesReporting by Karin Strohecker and Vincent Flasseur Editing by Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

Persons: Jason Lee, Carsten Brzeski, Brzeski, Costa, Madhavi Bokil, Karin Strohecker, Vincent Flasseur, Tomasz Janowski Organizations: People's Bank of China, REUTERS, New Zealand, Thomson Locations: Beijing, Norway, Brazil, Turkey, Russia, Central, United Kingdom, Australia, New, China, Europe, Chile, Costa Rica, Uruguay, Thailand

Search resuls for: "Karin Strohecker"

25 mentions found