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☆ Gabon coup leader sworn in as interim president in scene of jubilation
▼ + stars: | 2023-09-04 | by ( Gerauds Wilfried Obangome | ) www.reuters.com time to read: +4 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. State TV showed images of a cheering crowd and armoured personnel carriers firing into the sea to mark the moment. PLEDGE TO RETURN POWER TO CIVILIANSNguema reiterated that his administration would organise free and fair elections, though he gave no timetable. "After this transition ... we intend to return power to civilians by organising new elections that will be free, transparent, credible and peaceful," he said. The coup had drawn cheering crowds onto the streets of the capital Libreville but condemnation from abroad.

Persons: General Brice Oligui Nguema, Gerauds Wilfried Obangome, Bongo, Ali Bongo, Nguema, Nellie Peyton, Karin Strohecker, Alessandra Prentice, Estelle Shirbon, Peter Graff, Christina Fincher Organizations: REUTERS, Central Africa LIBREVILLE, Gabon's, Central, State, Central African, United Nations, African Union, Reuters, Thomson Locations: Gabon, Libreville, West, Central, of Gabon

Turkey's Central Bank headquarters is seen in Ankara, Turkey in this January 24, 2014 file photo. Yet five foreign investors told Reuters that this week's rate hike signalled a new independence among policymakers who are serious about addressing unrelenting pressure on the currency and reining in inflation expectations. "It feels like they are correcting the mistakes they made with their first rate hike decisions," said Viktor Szabo, portfolio manager at abrdn in London. Erdogan, who has fired four central bank chiefs in four years, has said little about the rate hikes. Reuters GraphicsTurkish stock, Eurobond and CDS markets are more attractive targets this year and next, especially after the rate hike, investors and officials say.

Persons: Umit, Erdogan's unorthodoxy, Mehmet Simsek, Goldman Sachs, Tayyip Erdogan's, Viktor Szabo, Ola El, Van Eck, ERDOGAN, Erdogan, Simsek, Hafize Gaye Erkan, Cevdet Yilmaz, Blaise Antin, TCW, Kaan, Neuberger Berman, Jonathan Spicer, Marc Jones, Jorgelina, Hugh Lawson Organizations: Turkey's Central Bank, Finance, Goldman, Reuters, abrdn, Emerging Markets, Wall Street, JPMorgan, Reuters Graphics, CDS, Yeni, United Nations, International Monetary Fund, Thomson Locations: Ankara, Turkey, ANKARA, LONDON, New York, London, Van, Los Angeles, Reuters Graphics Turkish, Yeni Safak, Morocco, Japan, Singapore, Hong Kong, Istanbul, Rosario

Some investors and economic analysts are sceptical that expansion will lead to increased foreign direct investment (FDI) within the bloc. Still, BRICS leaders and other investors touted the increased economic heft from the expansion. Increasing use of national currencies to reduce U.S. dollar dependence was another goal BRICS leaders discussed at the summit in Johannesburg. And with oil producer heavyweights among the newcomers, investors said this would feed speculation that Saudi Arabia might increasingly switch to non-dollar-denominated currencies for oil trade. "The short-term consequences could be seen in oil," said Kaan Nazli, a portfolio manager at asset manager Neuberger Berman in London.

Persons: Brazil Luiz Inacio Lula da Silva, China Xi, Cyril Ramaphosa, India Narendra Modi, Sergei Lavrov, Viktor Szabo, Li Kexin, Ola El, Chris Turner, Jakob Ekholdt Christensen, Hasnain Malik, abrdn's Szabo, Kaan Nazli, Neuberger Berman, Rachel Savage, Karin Strohecker, Bansari Mayur, Marc Jones, Jorgelina, Emelia Sithole Organizations: Russia's, Iran, United Arab Emirates, abrdn, Emerging Markets, ING, Reuters Graphics, China, International Monetary Fund, Thomson Locations: China, India, Sandton, Saudi Arabia, UAE, Iran, JOHANNESBURG, LONDON, Argentina, Brazil, Russia, South Africa, Ethiopia, Egypt, Johannesburg, United States, Saudi, London, Van Eck, New York, Copenhagen, Dubai, Bangalore, Rosario

☆ Take Five: Farewell to a bruising August
▼ + stars: | 2023-08-25 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 14, 2023. Other data such as consumer confidence, the state of manufacturing, and inflation, with the latest personal consumption expenditures index is also due. Line chart with data from Refinitiv Datstreamn shows U.S. unemployment rate and federal funds target rate from January 2021 to July 2023. Yet Thursday's flash euro area August inflation number, which follows releases from some member states, could be the decider. The world's most populous country is already concerned about the threat to production of several basic commodities, including rice and sugar.

Persons: Brendan McDermid, Lewis Krauskopf, Kevin Buckland, Nigel Hunt, Dhara, payrolls, Bundesbank, buybacks, Xi Jinping, Karin Strohecker, Sharon Singleton Organizations: New York Stock Exchange, REUTERS, Treasury, Federal Reserve, ECB, Reuters, Nino, Climate, Thomson Locations: New York City, U.S, China, Lewis, New York, Tokyo, Amsterdam, London, Jackson Hole , Wyoming, Indonesia, Thailand

☆ Exclusive: Argentina to use IMF money to pay back part of a currency swap with China -sources
▼ + stars: | 2023-08-23 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +3 min

[1/2] The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. The cash-strapped economy has used money from the Chinese swap line to pay for imports as well as repay IMF debt. The swap line that the PBOC signed in 2009 with Buenos Aires was the first agreed with a Latin American country. Neither China nor Argentina have released much detail of the swap arrangement or any borrowing under it, so little is known about the currency line signed more than a decade ago. "The funds that will be disbursed today go in part to Qatar, to CAF and will lower the level of how much has been used from the swap line.

Persons: Yuri Gripas, PBOC, Jorgelina, Jorge Otaola, Karin Strohecker, Sandra Maler Organizations: Monetary Fund, REUTERS, International Monetary Fund, People's Bank of China, Fund, Buenos Aires, Development Bank of Latin, CAF, Qatar, Thomson Locations: Washington , U.S, Argentina, China, Buenos Aires, Buenos, American, Development Bank of Latin America, Qatar, SDRs, U.S, Rosario

But it was U.S. Treasuries that hogged the limelight once again, with benchmark 10-year yields climbing to 4.366% - their highest level since 2007 and up almost 40 bps month-to-date - before losing some ground to 4.3141%. "There's a more cautiously optimistic mood across financial markets," said Fiona Cincotta, senior markets analyst at City Index in London. At the same time, however, inflation expectations have hardly budged - meaning "real" yields, which discount inflation expectations, have surged - a development likely to prompt investors to re-evaluate taking risks. The 10-year real rate breached 2% late last week. In Europe, benchmark bond yields in Germany, France and Italy eased after Monday's sharp climb , , .

Persons: BOJ's Ueda, Fiona Cincotta, Jackson, Padhraic Garvey, Vishnu Varathan, Kazuo Ueda, Karin Strohecker, Elizabeth Howcroft, Dhara Ranasinghe, Tom Westbrook, Chizu Organizations: REUTERS, Staff, Nvidia, Wall, Index, Federal Reserve, Treasury, ING . Markets, Fed, European Central Bank, Bank of England, Bank of Japan, Mizuho Bank, NVIDIA, Wednesday, Tech, P, Brent, Benchmark, Dalian, Thomson Locations: Frankfurt, Germany, Europe, Asia, U.S, London, Americas, Jackson Hole , Wyoming, Singapore, France, Italy

☆ Take Five: Are we there yet?
▼ + stars: | 2023-08-11 | by ( ) www.reuters.com time to read: +6 min

China retail sales data due on Tuesday will show whether spending can cling to the around-3% growth rate in June - a far cry from the double-digit readings earlier in the year. Meanwhile, investors will get another look at the health of the U.S. consumer with Tuesday’s retail sales report. June retail sales, released last month, rose less than expected, but nonetheless showed consumers weathered higher interest rates. Chart shows change in U.S. retail sales on a monthly basis. After shooting to a nine-year peak of 6.55% - prompting the central bank to step in to restore calm - yields have settled around 0.58%.

Persons: Kevin Buckland, Ira Iosebashvili, Naomi Rovnick, Karin Strohecker, Amanda Cooper, Christine Lagarde, there's, BoE, Morgan Stanley, Sharon Singleton Organizations: PMI, Reuters Graphics Reuters, European Central Bank, Reuters, Bank of, BOE, Bank of England, Citi, Confederation, Thomson Locations: West, Britain, U.S, Tokyo, New York, London, China, Jackson Hole , Wyoming

A view of logo of New Development Bank (NDB) at its headquarters in Shanghai, China July 10, 2023. Finance Minister Enoch Godongwana said boosting local currency usage among the NDB's members will also be on the agenda, with the aim of de-risking the impact of foreign exchange fluctuations rather than de-dollarisation. "Most countries that are members of the NDB have been encouraging (it) to provide loans in local currencies," Godongwana said. Reuters Graphics Reuters GraphicsSo far, China is by far the NDB's most successful local currency market. GROWING MEMBERSHIPNevertheless, the NDB, established with $10 billion in paid-in share capital from each BRICS country, wants to expand.

Persons: Aly, Enoch Godongwana, Godongwana, Leslie Maasdorp, Maasdorp, Alexander Ekbom, Chris Humphrey, Humphrey, Rachel Savage, Brenda Goh, Tannur Anders, Vincent Flasseur, Karin Strohecker, Joe Bavier, Alexander Smith Organizations: New Development Bank, REUTERS, Reuters, Finance, Federal Reserve, Reuters Graphics Reuters, U.S ., United Arab, Asian Infrastructure Investment Bank, Reuters Graphics, Overseas Development Institute, Thomson Locations: Shanghai, China, Africa, JOHANNESBURG, SHANGHAI, Russia, South Africa, Brazil, India, Johannesburg, Ukraine, United States, Mumbai, Brasilia, Bangladesh, United Arab Emirates, Egypt, Uruguay, Algeria, Honduras, Zimbabwe, Saudi Arabia, Asia, London

☆ Analysis: US institutional investors could face restrictions on Chinese stock ownership
▼ + stars: | 2023-08-04 | by ( Ross Kerber | ) www.reuters.com time to read: +5 min

Chinese companies including Tencent (0700.HK) and Alibaba (9988.HK) accounted for 31% of the MSCI Emerging Markets index (.MSCIEF) in July. RED-FLAGGED COMPANIESMSCI and rivals removed seven Chinese companies from global indexes in 2020 because of U.S. ownership restrictions. The committee's letters this week cited contractors to China's People's Liberation Army it identified in BlackRock funds or MSCI indexes. Some of the companies have been flagged such as appearing on the U.S. Treasury's "Chinese Military-Industrial Complex" companies list. For companies on it, U.S. persons and asset managers face purchase and sale restrictions but not divestment requirements.

Persons: Tingshu Wang, Biden, Jo Ritcey, Donohue, there’ll, BlackRock, MSCI, RUSH, Mike Gallagher, Gallagher, Todd Rosenbluth, Rosenbluth, Russell, Ross Kerber, Karin Strohecker, Michael Martina, Patricia Zengerle, Selena Li, Megan Davies, Cynthia Osterman Organizations: Waterdrop Inc, New York Stock Exchange, REUTERS, U.S, BlackRock, Washington, Chinese Communist Party, HK, Vanguard FTSE, Vanguard, FTSE Russell, People's, Ritcey, Department of, Thomson Locations: U.S, New, Beijing, China, BlackRock, Washington, Taiwan, Ukraine, MSCI, Boston, London, Hong Kong

☆ Morning Bid: Time for tech
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +3 min

The American flag flies over the U.S. Treasury building in Washington, U.S., January 20, 2023. U.S. Treasury yields and the dollar are clinging to nine-month peaks, while the VIX is headed for its biggest week-on-week gain since March. This will shift investors' focus to the use of artificial intelligence to augment Apple's growth. Policy makers are attempting a balancing act; trying to fight inflation without fanning recession risk. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jim Bourg, Karin Strohecker, BoE, Thomas Barkin, Christina Fincher Organizations: U.S . Treasury, REUTERS, Apple, U.S, Treasury, Nasdaq, Services, Bank of England, Moderna, Hasbro, Labor Department, Commerce Department, PMI, Federal Reserve Bank of Richmond, Graphics Reuters, Reuters, Thomson Locations: Washington , U.S, U.S, Europe

"China is not trying to supplant the IMF," said Matthew Mingey, a senior analyst with Rhodium Group. "When China has allowed these swap lines to be tapped, in many cases it's to unlock an IMF bailout or ensure an IMF programme stays on track." In turn, China is a major customer for Argentina's soy, corn and poultry exports. "China has every incentive to tightly manage Argentine drawings under the swap lines as the risks are very high." The swap line that the People's Bank of China (PBOC) signed in 2009 with Buenos Aires was the first agreed with a Latin American country.

Persons: Matthew Mingey, Buenos, Mark Sobel, Sobel, Sergio Massa, Martin Castellano, Alejandro Werner, Werner, Mingey, Jorgelina, Rosario, Karin Strohecker, Jorge Otaola, Joe Cash, Kirsten Donovan Organizations: International Monetary Fund, IMF, U.S . Treasury, Reuters, World Bank, TAG, People's Bank of China, Buenos Aires, Economy, Institute of International Finance, Relations, Georgetown Americas Institute, Western Hemisphere Department, Thomson Locations: China, Argentina, Beijing, Washington, Latin America, Buenos Aires, U.S, Buenos, American, United States, Zambia, Sri Lanka, Taiwan, Ukraine

Three of the six central banks overseeing the 10 most heavily traded currencies that met in July hiked rates, while the other three kept their benchmarks unchanged, Reuters data showed. "Chile announced a larger-than-expected rate cut, and is the first emerging market to jump on the easing bandwagon in the current cycle," said Charu Chanana, market strategist at Saxo. Twelve out of 18 central banks in the Reuters sample of developing economies had interest rate setting meetings in July. However, nine central banks opted to keep policy unchanged, with rate hikes coming from Turkey and Russia - two countries whose monetary policy circles are determined by domestic dynamics rather than global trends. On the rate cutting side, emerging market central banks have seen three cuts reducing interest rates by 160 bps in total.

Persons: Christian Keller, Costa, Charu, Karin Strohecker, Vincent Flasseur, David Evans Organizations: LONDON, U.S . Federal Reserve, Bank of Canada, European Central Bank, Fed, ECB, Barclays, Saxo, Thomson Locations: Chile, Turkey, Russia, Latin America, Costa Rica, Uruguay

☆ Exclusive: Argentina, IMF staff-level agreement set to combine reviews on $44 billion loan, sources say
▼ + stars: | 2023-07-28 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +3 min

Combining the two reviews would give Argentina access to 5.5 billion of IMF's special-drawing rights (SDRs), equivalent to about $7.3 billion. An IMF spokesperson said: "Discussions between the teams continue to be very constructive" and "are aimed at reaching staff level agreement." Once a Staff Level Agreement is reached, this is presented to the IMF executive board and if it is signed off, this will trigger the release of cash. LONG AWAITED DEALBoth sides have recently said that a Staff Level Agreement was close. Facing a recession and triple-digit inflation, Argentina is scheduled to have four reviews between December and September 2024 on its IMF programme.

Persons: didn't, LONG, disbursements, Jorgelina, Karin Strohecker, Jane Merriman Organizations: International Monetary, IMF, Argentine, Thomson Locations: Argentina, Buenos Aires, Uganda, Nepal, Pakistan, Beijing, Rosario

But it was the repeated use of the word holistic - or "bütüncül" - by the former Goldman Sachs banker and Turkey's first female central bank chief that caught most of the attention. "We are making the gradual and steady rate hikes more holistic and stronger through quantitative tightening and selective credit tightening," Erkan told the news conference. "Unless the credit and monetary tightening really kick in, investors would expect the central bank to hike more aggressively," he said. "She clearly wants to be the face of Turkish monetary policy making," said Neuberger Berman's Nazli. "We saw a person who seems to be capable of being a central bank governor, compared to previous governors, but cautious."

Persons: Goldman Sachs, Hafize Gaye Erkan, Erkan, Tayyip Erdogan, Turkey's, Kaan Nazli, Neuberger Berman, policymaker Mehmet Simsek, Tim Ash, Erdogan, Ash, Marek Drimal, Neuberger Berman's Nazli, swerved, Emre Akcakmak, Karin Strohecker, Libby George, Tomasz Janowski Organizations: Turkey's, Ministry, BlueBay Asset Management, Societe Generale, East Capital, Thomson Locations: Rosario, London

THE REVIEWUnder the terms of the $44 billion program agreed in 2022, the funds are released in tranches based on regular reviews of steps Argentina takes to shore up its economy. The IMF did not respond to a request for comment on the likelihood of a board meeting soon to discuss the Argentina program. Argentina made the last IMF payment due end-June partially with its holdings of IMF special-drawing rights (SDRs), but analysts calculated that this has wiped out the country's $1.65 billion in IMF reserve assets. Argentina used $1.1 billion in yuan from a recently extended and expanded swap line with China to complete the June payment to the IMF. Reuters GraphicsFALLING INTO ARREARSMissing payments would automatically put Argentina in default with the IMF because there is no grace period with the multilateral lender.

Persons: Goldman Sachs, Sergio Massa, Gordian Kemen, Kemen, Gross, Jorgelina, Rosario, Rodrigo Campos, Karin Strohecker, Tomasz Janowski Organizations: International Monetary Fund, IMF, Standard Chartered Bank, Reuters, Thomson Locations: Argentina, Buenos Aires, Beijing, China

If it cannot secure fresh funds before an approaching deadline, Argentina risks defaulting on repayments to the IMF. Analysts say the central aim of these economic adjustments is to signal to the IMF that Buenos Aires is committed to the program. The left-wing administration has been locked in negotiations with the IMF for months over whether to front-load tranches of the $44 billion program. Both parties said on Sunday that an agreement on the fifth IMF review was close, but not yet finalized. Reporting by Lucinda Elliott in Montevideo, Anna-Catherine Brigida in Buenos Aires, Rodrigo Campos in New York.

Persons: Sergio Massa, Eduardo Levy Yeyati, Eyeing, Marina dal, EcoGo, Alejo Czerwonko, Yeyati, Lucinda Elliott, Catherine Brigida, Rodrigo Campos, Jorgelina de, Karin Strohecker, Catherine Evans Organizations: International Monetary Fund, Economy, Peronist, IMF, Reuters, Emerging, UBS, Analysts, Thomson Locations: BUENOS AIRES, Buenos Aires, Argentina, refinance, Washington, Beijing, Montevideo, Anna, New York, Jorgelina de Rosario, London

LONDON/JOHANNESBURG, July 25 (Reuters) - Gabon launched what is set to be Africa's first debt-for-nature swap on Tuesday, with a plan to buy up at least $450 million of its government debt and switch it to an eco-friendly blue bond. The February 2031 maturity rose 2.203 cents to 83.702 cents and November 2031 maturity jumped 2.129 cents to 83.573 cents, compared to Gabonese government's offer to buy back the bonds for 85 cents per $1 of the bond. ,The 2025 maturity rose 1.194 cents to 95.4 cents, also still below the offer price of 96.75 cents.. Ecuador pulled off a record $1.1 billion debt-for-nature swap in May, freeing up $18 million annually for the next 20 years for conservation of the Galapagos Islands. The African Development Bank and European Investment Bank are interested in providing credit guarantees.

Persons: Marc Jones, Rachel Savage, Gerauds Wilfried Obangome, Karin Strohecker, Ed Osmond, Tomasz Janowski Organizations: London Stock Exchange, Republic, Industry, U.S . International Development Finance Corporation, African Development Bank, European Investment Bank, Bank of America, Thomson Locations: JOHANNESBURG, Gabon, Gabonese, Ecuador, Belize, Galapagos, Sri Lanka, Indian, Libreville

☆ Israeli financial markets slide after judicial overhaul vote
▼ + stars: | 2023-07-24 | by ( Steven Scheer | ) www.reuters.com time to read: +3 min

JERUSALEM, July 24 (Reuters) - Israeli financial markets tumbled on Monday, with the shekel hitting a two-week low versus the dollar, after lawmakers ratified the first bill of a judicial overhaul sought by Prime Minister Benjamin Netanyahu. In protest at the vote, a forum of some 150 of Israel's largest companies held a strike on Monday. Azrieli (AZRG.TA) and Big (BIG.TA), two of Israel's largest malls, said stores in their shopping centres would be closed. But news that compromise talks collapsed erased early gains and sent the shekel weaker, with losses deepening after the vote. The shekel has weakened some 10% versus the dollar since late January when the government unveiled its controversial judicial overhaul plan, setting off mass protests and harming foreign inflows.

Persons: Benjamin Netanyahu, Nir Elias, Arnon Bar, Netanyahu, Steven Scheer, Bansari Mayur, Karin Strohecker, James Mackenzie, Christina Fincher, Sharon Singleton Organizations: REUTERS, Bank of Israel, MPC, Supreme, Thomson Locations: Tel Aviv, Washington

☆ Investors look beyond Turkey rate hike disappointment, for now
▼ + stars: | 2023-07-21 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +4 min

"There is a huge gap between rates and inflation, but investors still have faith in this policy shift," Peach said. "They will tolerate a gradual tightening cycle if the key rate rises towards 30% at the end of the year." International bonds are still widely held by foreign investors, though much less so the domestic ones exposed to the lira currency's wild swings. BETTER BUFFERSRising central bank reserves are another positive sign. JPMorgan raised its inflation outlook for Turkey after the rate hike, now expecting year-end inflation at 57% versus 50% previously.

Persons: Hafize Gaye Erkan, Tayyip Erdogan, Nick Eisinger, Liam Peach, Peach, Paul McNamara, Emre Akcakmak, It's, Cagri Kutman, Jorgelina, Karin Strohecker, John Stonestreet Organizations: LONDON, Vanguard, Capital Economics, GAM Investments, Net, East Capital, JPMorgan, United Arab, KNG Securities, Thomson Locations: Turkey, London, United Arab Emirates, Rosario

Rising tensions between Washington and President Nayib Bukele's government, dwindling prospects of a financing deal with the International Monetary Fund (IMF) and the fallout from bitcoin becoming legal tender against a wider difficult macro backdrop had seen El Salvador bonds drop to a quarter of face value last July. "In the summer of 2022, El Salvador bond prices were divorced from fundamentals," said Aaron Stern, managing partner and chief investment officer at Converium Capital in Toronto, who has been holding the country's bonds since last year. "The market was concerned about the administration's willingness to pay," he said, but even now El Salvador offers attractive value when compared to a number of better priced emerging market sovereigns. These were the best performing among sovereign bonds in the first half of the year, with total returns near 60%. "In a year where carry is the main driver of total returns, investors are going to be reticent to take profits too early," said BNP Paribas' Nathalie Marshik, a managing director for Latin America fixed income.

Persons: Nayib Bukele's, buybacks, Aaron Stern, Alejandro Werner, Bukele, there's, Shamaila Khan, Nathalie Marshik, Marshik, Rodrigo Campos, Karin Strohecker, William Maclean Organizations: YORK, Central, International Monetary Fund, El, IMF, Converium Capital, Reuters, Emerging Markets, Asia Pacific, UBS Asset Management, Reuters Graphics JPMorgan, Thomson Locations: El Salvador, Central American, Washington, Toronto, it's, America

☆ Analysis: Pakistan and Argentina bonds' surge belies bigger reform hurdles
▼ + stars: | 2023-07-17 | by ( Libgeorge Jorgelina Do Rosario | Jorgelina Do Rosario | ) www.reuters.com time to read: +5 min

Reuters GraphicsBut the boost in the bonds belies the difficulties both nations face implementing major reforms once new leaders arrive after upcoming elections. Pakistan's 11th hour deal for $3 billion from the International Monetary Fund (IMF), after months of talks got official approval this week. Saudi Arabia and the UAE followed with $2 billion and $1 billion infusions. This fresh cash means Pakistan is unlikely to default on its debt in the next six to nine months, said de Sousa. Investors and pollsters said the tough times could force Pakistan and Argentina's leaders to reckon with needed fiscal reforms.

Persons: Carlos de Sousa, de Sousa, JPMorgan, Roberto H, Sifon Arevalo, refinance, Jimena Blanco, pollsters, Alejandro Catterberg, Sergio Massa, Horacio Rodriguez Larreta, Patricia Bullrich, Javier Milei, Shamaila Khan, Libby George, Jorgelina, Rodrigo Campos, Karin Strohecker, Toby Chopra Organizations: JPMorgan, Vontobel Asset Management, International Monetary Fund, UAE, Elections, Pakistan, P, Reuters, Peronist, Asia Pacific, UBS Asset Management, Thomson Locations: Pakistan, Argentina, Saudi Arabia, Washington, Beijing, Buenos Aires, Asia, Rosario

☆ Ashmore assets under management hit by flight from emerging markets
▼ + stars: | 2023-07-14 | by ( ) www.reuters.com time to read: +1 min

LONDON, July 14 (Reuters) - Investment group Ashmore's (ASHM.L) assets under management dropped by $1.8 billion in the three months to June 30, down 3% from the previous quarter, as investors retreated from emerging markets owing to global macroeconomic uncertainties. Net outflows amounted to $2.9 billion, the emerging markets-focused asset manager reported on Friday, citing institutional clients' top-down asset allocation decisions to pull back on emerging market hard-currency debt and other fixed income in developing economies. Meanwhile, a positive investment performance of $1.1 billion cushioned the overall impact on assets under management, which stood at $55.9 billion at the end of June. "There remains some global macro uncertainty and certain investors have therefore reduced risk during the quarter," said Chief Executive Mark Coombs. "However, emerging markets continue to perform well, with support from improving fundamentals such as accelerating GDP growth, falling inflation and the potential for rate cuts, as well as the benefit of a weaker U.S.

Persons: Jeffries, Ashmore, Mark Coombs, Karin Strohecker, Dhara Ranasinghe, David Goodman Organizations: Thomson

☆ Global public debt hits record $92 trillion, UN report says
▼ + stars: | 2023-07-12 | by ( Jorgelina Do Rosario | ) www.reuters.com time to read: +3 min

LONDON, July 12 (Reuters) - Global public debt surged to a record $92 trillion in 2022 as governments borrowed to counter crises, such as the COVID-19 pandemic, with the burden being felt acutely by developing countries, a United Nations report said. Developing countries owe almost 30% of the global public debt, of which 70% is represented by China, India and Brazil. Fifty-nine developing countries face a debt-to-GDP ratio above 60% - a threshold indicating high levels of debt. Private creditors, such as bondholders and banks, represent 62% of developing countries' total external public debt. Reporting by Jorgelina do Rosario, additional reporting by Michelle Nichols at the United Nations, editing by Karin Strohecker and Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

Persons: Antonio Guterres, Jorgelina, Michelle Nichols, Karin Strohecker, Sharon Singleton Organizations: Global, United, UN, United Nations, Monetary Fund, Group, Thomson Locations: United Nations, China, India, Brazil, Africa, America, Paris, Rosario

"We first need to see Zambia's updated macroeconomic package, which is in part why we have to get restricted," one of the sources said. There will be a restriction period of two weeks, with the option to extend it if both sides agree, two sources added. Amia Capital, Amundi, BlueBay Asset Management, Farallon Capital Management, Greylock Capital and T. Rowe Price comprise the steering committee. Besides net present value (NPV) reductions, talks will focus on how to incorporate the impact of a potential improvement of Zambia's debt carrying capacity, or its ability to handle debt payments. Including in the overhaul a mechanism that would allow for higher payments through coupon payments, debt maturities or a combination of both if Zambia's debt capacity improves was "sacrosanct", one of the sources said.

Persons: Weil, Rowe Price, Jorgelina, Rodrigo Campos, Karin Strohecker Organizations: Paris Club, Newstate Partners, BlueBay Asset Management, Farallon Capital Management, Greylock, Monetary Fund, Bank, IMF, World Bank, Thomson Locations: China, Ghana, Sri Lanka, Zambia, U.S, Amia, Rosario, London, New York, Lincoln

☆ Twenty-four central banks will have digital currencies by 2030 - BIS survey
▼ + stars: | 2023-07-10 | by ( Karin Strohecker | ) www.reuters.com time to read: +3 min

Central banks around the globe have been studying and working on digital versions of their currencies for retail use to avoid leaving digital payments to the private sector amid an accelerating decline of cash. Most of the new Central Bank Digital Currencies (CBDCs) will emerge in the retail space, where eleven central banks could join peers in the Bahamas, the Eastern Caribbean, Jamaica and Nigeria which already run live digital retail currencies, the BIS found in its survey of 86 central banks conducted late 2022. On the wholesale side, which in future could allow financial institutions to access new functionalities thanks to tokenisation, nine central banks could launch CBDCs, the BIS said. "Enhancing cross-border payments is among the key drivers of central banks' work on wholesale CBDCs," the authors of the report wrote. Pilot testing in China now reaches 260 million people and two other big emerging economies, India and Brazil, plan to launch digital currencies next year.

Persons: Francois Lenoir, CBDC, Karin Strohecker, Mark Potter Organizations: REUTERS, Francois Lenoir LONDON, Bank for International Settlements, Central Bank Digital, BIS, Swiss National Bank, European Central Bank, Silicon Valley Bank, Signature Bank, Thomson Locations: Brussels, Belgium, Bahamas, Eastern Caribbean, Jamaica, Nigeria, China, India, Brazil, Silicon, stablecoins

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