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TOKYO, July 16 (Reuters) - There was "no discussion" about exchange rates at a meeting of Group of Seven (G7) finance ministers and central bank chiefs, Japanese Finance Minister Shunichi Suzuki said on Sunday, according to Kyodo News. Suzuki was speaking after a meeting in India of the G7 - the U.S., Japan, Germany, Britain, France, Italy and Canada. Speaking at a press conference, Suzuki also confirmed Japan's "unwavering support" for Ukraine, Kyodo reported. Ueda has cited uncertainty about the global economy as a reason for keeping ultra-easy monetary policy in place in Japan, even as inflation runs above the central bank's target. The BOJ's easy monetary policy has been a key driver of the yen's weakness, as it contrasts with tightening in the United States, Europe and most other developed economies.
Persons: Shunichi Suzuki, Suzuki, Kazuo Ueda, Ueda, Kevin Buckland, Jamie Freed, William Mallard Organizations: Japanese Finance, Kyodo News, Kyodo, Bank of Japan, Thomson Locations: TOKYO, India, U.S, Japan, Germany, Britain, France, Italy, Canada, Ukraine, United States, Europe
TOKYO, July 16 (Reuters) - There was "no discussion" about exchange rates at a meeting of Group of Seven (G7) finance ministers and central bank chiefs, Japanese Finance Minister Shunichi Suzuki said on Sunday, according to Kyodo News. Suzuki was speaking after a meeting in India of the G7 - the U.S., Japan, Germany, Britain, France, Italy and Canada. Speaking at a press conference, Suzuki also confirmed Japan's "unwavering support" for Ukraine, Kyodo reported. Ueda has cited uncertainty about the global economy as a reason for keeping ultra-easy monetary policy in place in Japan, even as inflation runs above the central bank's target. The BOJ's easy monetary policy has been a key driver of the yen's weakness, as it contrasts with tightening in the United States, Europe and most other developed economies.
Persons: Shunichi Suzuki, Suzuki, Kazuo Ueda, Ueda, Kevin Buckland, Jamie Freed, William Mallard Organizations: Japanese Finance, Kyodo News, Kyodo, Bank of Japan, Thomson Locations: TOKYO, India, U.S, Japan, Germany, Britain, France, Italy, Canada, Ukraine, United States, Europe
GANDHINAGAR, India, July 16 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Sunday she was "eager" to work with China on areas of mutual interest, including debt restructurings for poorer countries, and that multilateral development banks needed reforms before capital increases could be considered. "I am eager to build on the groundwork that we laid in Beijing to mobilise further action." U.S. corporations want to see an environment where they could "invest and thrive in China", Yellen said. She said a debt restructuring "user guide" was needed for borrowing countries and other stakeholders to provide clarity about the process. "We should build better banks, not just bigger banks," Yellen said.
Persons: Janet Yellen, Yellen, David Lawder, Aftab, Sudipto Ganguly, William Mallard Organizations: . Treasury, U.S ., Sri, International Monetary Fund, U.S . Treasury, IMF, World Bank, Bank, U.S, Thomson Locations: GANDHINAGAR, India, China, Beijing, U.S, Washington, Moscow, Ukraine, Russia, Gandhinagar, Indian, Gujarat, Sri Lanka, Ghana, United States, Congress, Aftab Ahmed
SYDNEY, July 16 (Reuters) - Australian Treasurer Jim Chalmers said on Sunday that he expected the nation's jobless rate to lift from near a 48-year low on the back of higher interest rates and slowing global growth. The Reserve Bank of Australia (RBA) has said the jobless rate would need to rise to about 4.5% - still well below pre-pandemic levels - to bring the economy back into balance. Unemployment was expected to lift "a bit as the economy slows as a consequence of higher interest rates and global economic uncertainty", Chalmers said ahead of attending a meeting of Group of 20 (G20) finance ministers and central bankers in India with outgoing RBA Governor Philip Lowe. The RBA this month kept the cash rate at an 11-year high of 4.10%, having lifted rates by 400 basis points since May last year, but warned that further tightening might be needed. Reporting by Sam McKeith in Sydney; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.
Persons: Jim Chalmers, Chalmers, Philip Lowe, Sam McKeith, Jamie Freed Organizations: SYDNEY, Bank, Treasury, Australian Broadcasting Corp, Reserve Bank of Australia, Australian Bureau, Statistics, Thomson Locations: India, Sydney
Treasury Secretary Janet L. Yellen called on Sunday for international creditors to speed up their efforts to provide debt relief to developing countries facing default, arguing that shoring up their deteriorating finances would benefit the global economy. Speaking in Gandhinagar, India, ahead of a gathering of finance ministers from the Group of 20 nations, Ms. Yellen cited a recent agreement among international creditors, including China, to help Zambia pay its debts. “We should apply the common principles we agreed to in Zambia’s case in other cases rather than starting at zero every time,” Ms. Yellen said. “And we must go faster.”The Treasury secretary noted that more than half of low-income countries are in or near debt distress — double the total from 2015. These nations face a vicious cycle, because heavy public debt levels make it hard to attract public and private investment.
Persons: Janet L, Yellen, ” Ms Locations: Gandhinagar, India, China, Zambia, Ghana, Sri Lanka
"India has made suggestions to get its due share of taxing rights on excess profits of multinational companies," one official said. The suggestions have been made to the OECD and will be discussed "extensively" during the G20 meeting on Monday and Tuesday, the official said. Under the agreement, global corporations with annual revenues over 20 billion euros ($22 billion) are considered to be making excess profits if the profits exceed 10% annual growth. The 25% surcharge on these excess profits is to be divided among countries. The G20 host nation will also propose that withholding taxation be de-linked from the excess profit tax principle.
Persons: Sarita Chaganti Singh, Shivangi Acharya, Nikunj, Aftab Ahmed, William Mallard Organizations: Organisation for Economic Cooperation, Development, OECD, People's, India's Consumer, Thomson Locations: DELHI, India, Australia, Japan, Gujarat, U.S, New Delhi
"India has made suggestions to get its due share of taxing rights on excess profits of multinational companies," one official said. The suggestions have been made to the OECD and will be discussed "extensively" during the G20 meeting on Monday and Tuesday, the official said. Under the agreement, global corporations with annual revenues over 20 billion euros ($22 billion) are considered to be making excess profits if the profits exceed 10% annual growth. The 25% surcharge on these excess profits is to be divided among countries. The rules now say countries offset their share of taxes with the withholding tax they collect.
Persons: Sarita Chaganti Singh, Shivangi Acharya, Nikunj, Aftab Ahmed, William Mallard Organizations: Organisation for Economic Cooperation, Development, OECD, People's, India's Consumer, Thomson Locations: DELHI, India, Australia, Japan, Gujarat, U.S, New Delhi
NEW DELHI, July 16 (Reuters) - Canadian pensions funds would be keen to explore investing in infrastructure funds in India as the country offers a stable investment climate, Finance Minister Chrystia Freeland said on Sunday, according to an Indian government statement. Indian Finance Minister Nirmala Sitharaman, meeting Freeland on the sidelines of gathering of Group of 20 finance ministers and central bankers in northwest India, discussed progress on bilateral trade negotiations, Sitharaman's office said in a tweet. Reporting by Manoj Kumar; Editing by William MallardOur Standards: The Thomson Reuters Trust Principles.
Persons: Chrystia Freeland, Nirmala Sitharaman, Freeland, Manoj Kumar, William Mallard Organizations: Finance, Indian, Thomson Locations: DELHI, India
Australia upbeat on global tax talks at G20 in India
  + stars: | 2023-07-15 | by ( ) www.reuters.com   time to read: +2 min
[1/2] Workers work to install a hoarding board near the venue of G20 Finance Ministers and Central Bank Governors meeting at Gandhinagar in Gujarat, India July 13, 2023. REUTERS/Amit DaveSYDNEY, July 15 (Reuters) - Australian Treasurer Jim Chalmers expressed optimism on Saturday about progress on a long-awaited overhaul of global corporate taxation at a meeting of Group of 20 (G20) nations in India. More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinational corporations. The rules are widely considered outdated as digital giants like Apple or Amazon can book profits in low-tax countries. The second pillar calls on governments to end competition on tax rates between governments to attract investment, by setting a global minimum corporate tax rate of 15% from next year.
Persons: Amit Dave SYDNEY, Jim Chalmers, Chalmers, Philip Lowe, Sam McKeith, William Mallard Organizations: Ministers, Central Bank Governors, REUTERS, ABC, Reserve Bank of Australia, Thomson Locations: Gandhinagar, Gujarat, India, Sydney
Morning Bid: Banks lob earnings into giddy markets
  + stars: | 2023-07-14 | by ( ) www.reuters.com   time to read: +4 min
But there's likely to be a scattering of the herd in terms of performance during that three months. For universal banks such as JPMorgan and Wells Fargo that serve retail consumers and firms, earnings per share are expected to have jumped more than 40% over the previous year. Overall, the U.S. earnings season is expected to show S&P500 profits down 6.4% from the same period a year earlier - with revenue down a more modest 0.8%, according to Refinitiv research. Stock markets around the world and S&P500 futures held most of their outsize weekly gains, however, and were mostly flat into the open. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Mike Dolan, Wells, behemoths Goldman Sachs, Morgan Stanley, Christopher Waller, that's, Toby Chopra Organizations: Federal Reserve, JPMorgan, Citigroup, Bank, Export, Stock, Nasdaq, Bank of Japan, University of Michigan, European Union, Brussels Reuters Graphics Reuters, Reuters, Thomson Locations: U.S, Wells Fargo, BlackRock, China, Brussels
Morning Bid: Markets bet July 2023 is 'peak Fed'
  + stars: | 2023-07-13 | by ( ) www.reuters.com   time to read: +4 min
A look at the day ahead in U.S. and global markets from Mike DolanSurprise news of a 2%-plus print on U.S. headline inflation rate for June has world markets betting the peak of the Federal Reserve's interest rate campaign will now be this month. Either way, the latest inflation cheer means U.S. rate futures have wiped out bets of another Fed rate hike after a final quarter-point move to 5.25-5.50% at July 26's meeting. Although they see peak rates held there to year-end, futures now price as much as a full percentage point of cuts by this time in 2024. The VIX "fear index" (.VIX) fell back below 14 to its lowest of the month so far. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Mike Dolan, That's, Christopher Waller, Mary Daly, Joe Biden, Christine Lagarde, Toby Chopra Organizations: Fed, Nasdaq, PepsiCo, Delta Airlines, Bank of, Swiss, Bank of Canada, Federal Reserve, San Francisco Fed, Nordic, European Central Bank, . Treasury, Reuters, Thomson Locations: U.S, Beijing, Jackson, Fastenal, Helsinki, Brussels, Japan
NEW DELHI, July 13 (Reuters) - Global finance chiefs will meet in India next week to discuss increasing loans to developing nations from multilateral institutions, reforming the international debt architecture and regulations on cryptocurrency, Indian officials said. The finance ministers and central bank governors from the Group of 20 (G20) nations will also discuss a multilateral agreement on taxing conglomerates with cross-border operations, while the Russian war in Ukraine was also bound to come up, they said. Senior treasury officials from Russia and China are also expected to attend, according to two Indian officials, who did not want to be named. The finance ministers and treasury heads will also attempt to bring agreement on the principles of managing cryptocurrencies in their respective geographies. Additional reporting by Maria Martinez and Leigh Thomas; Editing by Raju GopalakrishnanOur Standards: The Thomson Reuters Trust Principles.
Persons: Janet Yellen, Ajay Banga, Kristalina Georgieva, Lawrence Summers, N.K, Singh, Ajay Seth, Maria Martinez, Leigh Thomas, Raju Gopalakrishnan Organizations: Global, Treasury, International Monetary Fund's, Economic, IMF, Organisation for Economic Co, Development, OECD, Thomson Locations: DELHI, India, Ukraine, Gandhinagar, Gujarat, New Delhi, U.S, Russia, China, Zambia, Ghana
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
Watchdog with teeth can help EU hunt unicorns
  + stars: | 2023-07-11 | by ( Rebecca Christie | ) www.reuters.com   time to read: +8 min
Yet the EU today is a long way from uniting its capital markets. By comparison, the United States has seven exchange groups, three listings exchanges and 16 trading exchanges, along with one clearing house and one depository. Bringing capital markets together through better regulation, as well as better market incentives, could keep the next generation of unicorns home. Follow @rebeccawire on TwitterCONTEXT NEWSEuropean Union leaders called for the EU to improve capital markets as part of a push for competitiveness at summits in March and June. Capital markets union is an EU endeavour launched in 2014 as a long-term project to boost investment across borders.
Persons: , Austria’s i5invest, Backes, Magdalena Rzeczkowska, Nadia Calviño, ESMA, ” Calviño, won’t, centralisation, Francesco Guerrera, Oliver Taslic Organizations: Reuters, EU, ABC Fitness Solutions, Reuters Graphics Reuters, Canada, Berlin Brands Group, European Securities and Markets Authority, European, Central, Union, European Commission, Capital, Thomson Locations: BRUSSELS, Europe, China, Ukraine, Arkansas, London, Switzerland, United States, IPOs, Belgian, U.S, Paris, spillovers, Luxembourg, Poland, Brussels, EU, wean
India hits online gaming industry with 28% tax
  + stars: | 2023-07-11 | by ( Nikunj Ohri | ) www.reuters.com   time to read: +1 min
International investors have also been drawn to the industry, with Tiger Global backing Indian gaming startup Dream11, the lead sponsor of India's national cricket team. India's Finance Minister Nirmala Sitharaman, who chairs the goods and services tax (GST) council, comprising state finance ministers, said the decision to tax online gaming was reached after extensive discussion. "The implementation of a 28% tax rate will bring significant challenges to the gaming industry. This higher tax burden will impact companies' cash flows," Aaditya Shah, chief operating officer at the gaming app IndiaPlays, said. Roland Landers, CEO of The All India Gaming Federation, said the decision was "unconstitutional (and) irrational".
Persons: Dado Ruvic, Nirmala Sitharaman, Shah, Roland Landers, Sudipto Ganguly, Aftab Ahmed, Mark Potter, Jane Merriman, Barbara Lewis Organizations: REUTERS, Tiger Global, national cricket team, India's, Industry, The, India Gaming Federation, Thomson Locations: DELHI, India
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
Paraguay president-elect to visit 'great friend' Taiwan's Tsai
  + stars: | 2023-07-09 | by ( ) www.reuters.com   time to read: +2 min
[1/2] President-Elect Santiago Pena, a 44-year-old economist who won 43% of the vote on Sunday in the Presidential election, speaks during a news conference in Asuncion, Paraguay May 2, 2023. REUTERS/Cesar Olmedo/File PhotoTAIPEI, July 9 (Reuters) - Paraguay's president-elect, Santiago Pena, will visit Taiwan this week and meet "great friend" President Tsai Ing-wen, he said on Sunday, shoring up a relationship at a time China is working to entice the island's dwindling allies. Pena said on his Twitter account he would visit Abu Dhabi, then go to Taiwan to meet Tsai, who he described as a "great friend". He will be in Taiwan for the 66th anniversary of diplomatic ties on Wednesday, the ministry said. Diplomatic sources have told Reuters that Lai might attend as Taiwan's representative, likely transiting the United States to meet U.S. officials.
Persons: Santiago Pena, Cesar Olmedo, Tsai Ing, shoring, Pena, Tsai, William Lai, Wang Mei, Lai, Ben Blanchard, William Mallard Organizations: REUTERS, Democratic Progressive, Reuters, Thomson Locations: Asuncion , Paraguay, TAIPEI, Taiwan, China, Paraguay, American, Honduras, Beijing, Central America, Caribbean, U.S, America, Washington, Abu Dhabi, United States
The United States and China, as the world's two largest economies, must work together to combat the "existential threat" of climate change, U.S. Treasury Secretary Janet Yellen told Chinese government officials and climate experts on Saturday. "Continued U.S.-China cooperation on climate finance is critical," Yellen said in a prepared text. She said financing for such initiatives should be coordinated efficiently and effectively, adding that Beijing's support for existing multilateral climate institutions like the Green Climate Fund and the Climate Investment Funds, alongside the Washington and others, could boost their impact. China is the largest market after Europe for climate funds, surpassing the U.S. as funds in China have more than doubled since 2021 to $46.7 billion, according to research firm Morningstar. That group had in recent years developed a roadmap for sustainable finance, held workshops on carbon pricing and non-pricing policy levers, developed a transition finance framework, and made a range of recommendations on climate finance, she said.
Persons: jerry, Janet Yellen, Yellen, , Morningstar Organizations: Bandai, Treasury, U.S, Climate Fund, Climate, Bank, Sustainable Finance Locations: Pali district, Rajasthan, United States, China, U.S, Beijing, Paris, Washington, Europe, India
Opposition parties are clamouring for a vote in parliament, but Meloni said on Wednesday that was not about to happen and linked the debate to ongoing discussions on a broader reform of European budget rules. "Italy's interest is addressing negotiations on European governance, which covers the entirety of our national interests," she told parliament. "Meloni does not want to leave the anti-ESM front to Salvini and nobody wants to lose face," he told Reuters. Despite irritation in Brussels over the dithering in Rome, EU officials have told Reuters that any attempt by Meloni to link ESM approval to much more significant budget reform will not pay off. Italy, which has the second largest debt mountain in relation to its GDP in the euro zone after Greece, has criticised the suggestion.
Persons: Giorgia, Meloni, Matteo Salvini, Francesco Galietti, Paschal Donohoe, Francesco Saraceno, Crispian Balmer Organizations: ROME, European Union, Treasury, Reuters, European, Rome's Luiss University, Sciences Po, European Commission, Thomson Locations: Italy, Brussels, Rome, Sciences Po Paris, Greece, Rome's
At its peak in 2011, the swap deal was worth $70 billion. With both sides sitting on ample foreign exchange reserves, the swap deal is unlikely to be put into action anytime soon, he added. Masato Kanda, Japan's vice finance minister for international affairs also said the currency swap deal would promote co-operation. The bilateral finance talks were to have taken place every year under a 2006 agreement, but were last held in 2016. With China and North Korea growing concerns, South Korean President Yoon Suk Yeol met with Japanese Prime Minister Fumio Kishida in May, the third between the two this year, marking a thaw in years of icy relations between the Asian neighbours.
Persons: Yoon Suk Yeol, Kim Keon, Issei Kato, Shunichi Suzuki, Choo, Suzuki, Masato Kanda, Kanda, Fumio Kishida, Tetsushi Kajimoto, Jihoon Lee, Edwina Gibbs, Clarence Fernandez, Kim Coghill Organizations: Tokyo International, REUTERS, Japanese Finance, Korean, Japanese, South Korea, Thomson Locations: Korean, Tokyo, Japan, Seoul TOKYO, SEOUL, South Korea, Seoul, China, North Korea, South
New international sustainability reporting standards could fulfill their ambition in becoming the global baseline as the advantages of using a single standard worldwide may, for many companies, outweigh the disadvantages of being more demanding than the SEC’s coming climate reporting rules. On Monday, the International Sustainability Standards Board released its initial two reporting standards. PREVIEWDespite the strong demand for one standard, U.S. and European Union officials are each developing their own climate reporting regimes. It is now up to individual countries and jurisdictions to decide if and when they will adopt the ISSB standards. Sue Lloyd, vice chair of the International Sustainability Standards Board, at the launch of the inaugural sustainability standards.
Persons: Sue Lloyd, , Brian Moynihan, Lloyd, Um, Lysanne Gray, Eelco van der Enden, Jean, Paul Servais, Benoit Doppagne, Iosco, Unilever’s Gray, Rochelle Toplensky, Amplifications Iosco Organizations: Sustainability, Task Force, Sustainable Business, European Union, International Organization of Securities Commissions, Securities, Exchange Commission, U.S, Wall Street, Bank of America, London Stock Exchange, Asian Development Bank, Unilever, Alignment, Global, Initiative, Belgian Financial Services, Markets, FSMA, Zuma Press, Accounting, Rochelle, wsj.com Corrections, Amplifications Locations: EU, Australia, Canada, Japan, Hong Kong, Malaysia, New Zealand, Nigeria, Singapore, Glasgow, Monday’s, Egypt, Africa, Asia, U.S
Australia to decide fate of central bank chief in July
  + stars: | 2023-06-22 | by ( Wayne Cole | ) www.reuters.com   time to read: +3 min
[1/2] Governor of the Reserve Bank of Australia (RBA) Philip Lowe attends the G20 Finance Ministers and Central Bank Governors Meeting in Nusa Dua, Bali, Indonesia, 16 July 2022. Treasurer Jim Chalmers told reporters on Thursday he would announce his decision on Reserve Bank of Australia (RBA) Governor Philip Lowe's future in coming weeks, but would not be drawn on whether Lowe would keep his job. The clamour of criticism, particularly in the media, led Chalmers to launch an independent review of the central bank which recommended sweeping changes in its operation and the way policy was formed. "Obviously, the Reserve Bank Governor needs to be well placed to implement the recommendations of the review and to take the Reserve Bank into the future," said Chalmers. Possible replacements being touted are the current deputy governor Michele Bullock, Treasury official Jenny Wilkinson and former Bank of Canada official Carolyn Wilkins, who also led the review into the RBA.
Persons: Philip Lowe, Jim Chalmers, Philip Lowe's, Lowe, I’m, we'd, Chalmers, Michele Bullock, Jenny Wilkinson, Carolyn Wilkins, Wayne Cole, Renju Jose, Leslie Adler Organizations: Reserve Bank of Australia, Ministers, Central Bank Governors, Reserve Bank Governor, Bank, Treasury, Bank of Canada, Thomson Locations: Nusa Dua, Bali, Indonesia
WHAT IS THE COMMON FRAMEWORK? The Common Framework requires debtor countries to secure restructuring assurances from any bilateral lenders first and commercial and multilateral lenders second - to Beijing's dismay. "We call on multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, to participate in developing countries' debt relief efforts," Mao said. In Paris, analysts expect China to continue to voice support for the Common Framework but for debt relief to be dispensed "case-by-case". The last time global policymakers met to discuss the Common Framework in Washington, China proposed the IMF should speed up and improve information sharing on debt sustainability analyses.
Persons: Li Qiang, acceding, Yi Gang, Mao Ning, Mao, Qin Gang, Sri, Wang Wenbin, Joe Cash, Ryan Woo, Shri Navaratnam Organizations: Paris Club, International Monetary Fund, Bank, IMF, World Bank, Foreign Ministry, China's, France, Thomson Locations: Paris, China, Zambia, Chad, Ethiopia, Ghana, United States, U.S, Beijing, Washington, CHINA, Addis Ababa, Japan, India, France, Sri Lanka's
"Monetary policy must continue to tighten to bring inflation to target in a timely manner," the IMF said in the report, which it presented to euro zone finance ministers and the ECB. The IMF urged euro zone governments to help the ECB by cutting spending, because economic growth was to pick up modestly this year and next despite tightening financial conditions. "Fiscal consolidation should also proceed to ease inflation pressures and rebuild fiscal space," the IMF said. The Fund called on EU governments to complete the ongoing reform of the bloc's fiscal rules, which were put in place to prevent excessive borrowing by governments. "A swift agreement on the reform of the EU economic and fiscal governance framework would support fiscal sustainability over the longer term," the IMF said.
Persons: Jan Strupczewski Organizations: European Central Bank, International Monetary Fund, IMF, ECB, Thomson Locations: BRUSSELS, Germany, France
Morning Bid: The UK consumer is feeling the heat
  + stars: | 2023-06-16 | by ( ) www.reuters.com   time to read: +2 min
A look at the day ahead in European and global markets from Vidya RanganathanIt's not just the heatwave. UK consumers are paying through their noses for fish and chips too, and Friday brings the next quarterly survey of their views on inflation and rates. As Britain contends with one of the highest inflation rates among major advanced economies, the BOE seems set to hike rates a lot more. The stock has soared 17% this year, but pared some gains as grocers across Europe cap some prices. St. Louis Federal Reserve Bank President Bullard speaks in Oslo, NorwayEarnings/updates: Tesco (TSCO.L)Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.
Persons: Vidya Ranganathan It's, BOE, Bullard, Sam Holmes Organizations: Bank of England, Reuters, Tesco, Asda, June University of Michigan, Louis Federal Reserve Bank, Thomson Locations: Vidya, gilts, Europe, Brussels, Italy, Oslo, Norway
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