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☆ 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.

☆ Debt ceiling: Janet Yellen warns US default would threaten the global economy
▼ + stars: | 2023-05-11 | by ( Emiko Jozuka | ) edition.cnn.com time to read: +3 min

Tokyo CNN —US Treasury Secretary Janet Yellen urged Congress on Thursday to raise its debt ceiling, warning that a US default would produce an “economic and financial catastrophe” that would trigger a global economic downturn and risk undermining the country’s ability to provide global leadership. “It would also risk undermining US global economic leadership and raise questions about our ability to defend our national security interests,” she added. He suggested Republicans should refuse to raise the debt limit if the White House does not agree to “massive” spending cuts. The report estimated the impact under three scenarios: brinksmanship, a short default and a protracted default. A White House spokesperson said the protracted default scenario envisions a three-month long impasse.

In that instance, S&P Global Ratings credit rating agency downgraded the government from AAA to AA+ credit rating. The federal government maintains a perfect credit rating from Fitch and Moody’s, but that could change as the stalemate drags on. Investors care about stability and predictability, so a credit rating downgrade would send a chill down Wall Street’s spine. The broadest economic impact of a US debt default would be a recession that would encompass the global economy, including sharp job losses. And the housing market would not be spared by the “economic calamity” of a US government default, as Yellen once described it.

Wall Street and world markets cheered below-consensus U.S. inflation on Wednesday, but they may not be so accommodating if Chinese inflation on Thursday also undershoots forecasts. On the other hand, inflation in China is already extremely low and a sign that the world's second largest economy is struggling to generate demand, momentum and sufficient growth. Charlie Bilello, chief market analyst at Creative Planning, on Wednesday tweeted a list of 34 countries' annual consumer price inflation rates. China's 0.7%, the lowest since September 2021, was comfortably the weakest of them all, by almost two full percentage points. Producer price inflation figures will also be released on Thursday.

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.

☆ Russia's war on Ukraine latest: Russia marks Victory Day with new attacks on Ukraine
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +4 min

* European Commission President Ursula von der Leyen hailed Ukraine as "the beating heart of today's European values" in a deeply symbolic visit to Kyiv on Tuesday as Russia marked its World War Two Victory Day. CONFLICT* Russia's defence ministry said its forces had launched missile strikes at targets across Ukraine overnight, disrupting Kyiv's supplies of ammunition to the frontline and troop movements. * Ukraine said its air defences shot down 23 of 25 missiles, fired chiefly at Kyiv, and there were no reported casualties. * Russian mercenary chief Yevgeny Prigozhin made a cryptic, profanity-laced comment about those in charge of Russia's war on Ukraine. INTERNATIONAL* Chinese Foreign Minister Qin Gang said Beijing would maintain lines of communication with all parties to the war in Ukraine, including Germany, in seeking a ceasefire.

☆ Japan MOF Kanda: G7 to invite Ukrainian finance minister to G7 meeting
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: 1 min

TOKYO, May 9 (Reuters) - The Group of Seven finance ministers will invite their counterpart from Ukraine to participate in a session on the global economy, Japan's top financial diplomat Masato Kanda said on Tuesday. The biggest challenge regarding sanctions against Russia is circumvention, Kanda told reporters, adding that the G7 will keep up sanctions against Russia. Reporting by Tetsushi Kajimoto; Editing by Kevin LiffeyOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Markets await US banks' take on credit squeeze
▼ + stars: | 2023-05-08 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Wayne Cole. In the meantime, everyone is waiting for the Federal Reserve's Senior Loan Officer Opinion Survey, or 'SLOOS', to see just how much lending has tightened given the strife in U.S. regional banks. The last survey out in January showed a combined 44.8% of respondents saw a tightening of standards for large and middle-market firms. It would also be consistent with levels reached before or during the last four recessions - 1990-91, 2001, 2007-09 and early 2020. This week also sees Chinese data on inflation and trade, while G7 finance ministers meet in Niigata, Japan, from Thursday through Saturday.

☆ Yellen is calling CEOs personally to warn on US debt ceiling, sources say
▼ + stars: | 2023-05-08 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

The Treasury secretary is having one-on-one conversations with individual CEOs to warn them about the "dangerous consequences of the current brinkmanship," one of the sources said. While the sources did not spell out her purpose, Biden administration officials have been speaking to business owners about pressuring Republicans to raise the debt ceiling without conditions. Yellen is now slated to leave for Japan this week and will hold a news conference in Niigata, Japan, on Thursday before the G7 meeting. President Joe Biden insists that Congress has a constitutional duty to raise the debt ceiling, which reflects previously spent federal money, without conditions. Because the government spends more than it takes in, lawmakers must periodically raise the debt ceiling.

May 8 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. The regional economic data calendar on Monday is light, with the final reading of Japanese purchasing managers index and Taiwanese trade for April the main releases. Federal Reserve Chair Jerome Powell, for one, is very optimistic: "It's possible that this time is really different. Technology giant JD.com (9618.HK) and China's largest chip foundry Semiconductor Manufacturing International Corp (0981.HK) both release first-quarter earnings on Thursday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Take Five: Sell in May?
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +5 min

The services component of the price data can gauge demand, but consumer and producer price data broadly paint a picture of deflation. April inflation data is out Thursday. At 10.1%, UK inflation is the highest in Western Europe. Reuters Graphics Reuters Graphics4/ SELL IN MAYConventional wisdom has it that May is the ideal point to take profit on equities and lay low until later in the year. "Sell in May and go away" is based on the premise that the best six-month period of the year for stock market returns is November to April, while the leanest is May to October.

☆ US Treasury's top international official heads to Europe, Asia for talks on economy
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, May 4 (Reuters) - The U.S. Treasury Department's top international official is heading to Europe and Asia this week for talks on current macroeconomic trends and events, and a G7 finance officials meeting, Treasury said in a statement on Thursday. Treasury Undersecretary for International Affairs Jay Shambaugh will attend meetings of the Organization for Economic Cooperation and Development in Paris on Friday, before traveling on to Singapore and Japan, Treasury said. The meeting takes place a month after the International Monetary Fund trimmed its 2023 global growth outlook slightly and warned that a severe flare-up of financial system turmoil could slash output to near recessionary levels. Shambaugh will join U.S. Treasury Secretary Janet Yellen at the G7 meeting in Niigata, Treasury said. Reporting by Andrea Shalal; Editing by Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ South Korea's finance minister says country is at a 'turning point' in relations with Japan
▼ + stars: | 2023-05-03 | by ( Jihye Lee | ) www.cnbc.com time to read: +2 min

South Korea Finance Minister Choo Kyung-ho attends the G20 Finance Ministers and Central Bank Governors Meeting in Nusa Dua, on Indonesia resort island of Bali, on July 16, 2022. (Photo by MADE NAGI / POOL / AFP) (Photo by MADE NAGI/POOL/AFP via Getty Images)South Korea's finance minister says the nation sees is at a "turning point" in economic relations with Japan. Speaking to CNBC's Chery Kang at the Asian Development Bank's annual meeting in Incheon, South Korea's finance minister and deputy prime minister Choo Kyung-ho praised Tokyo's recent decision to restore South Korea to a list of preferred trade partners. Choo said the recent talks with Suzuki will lead to further economic cooperation between the two U.S. allies. "The recent bilateral summit has opened things up for improvement.

SummarySummary Companies Japan, South Korea hold 1st bilateral finance meeting in 7 yearsTwo nations to resume regular finance dialogue, likely annualAsia policymakers to discuss safeguardsINCHEON, South Korea May 2 (Reuters) - Japan and South Korea held their first finance leaders' meeting in seven years on Tuesday and agreed to resume regular dialogue, as tensions in the region and slowing growth prod them to increase co-operation and mend strained relations. The resumption of bilateral financial discussions comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea next week for talks with President Yoon Suk Yeol. "Japan and South Korea are important neighbours that must cooperate to address various challenges surrounding the global economy, as well as the regional and international community," Japanese Finance Minister Shunichi Suzuki said at the meeting with his South Korean counterpart Choo Kyung-ho. Japan and South Korea will resume regular finance dialogue, likely to be held annually, at "an appropriate timing," Suzuki told reporters after the bilateral meeting. Choo is expected to visit Japan this year for another meeting with Suzuki, South Korea's finance ministry said.

SummarySummary Companies ASEAN+3 finance leaders meet in Incheon, South Korea, TuesdayJapan hopes to propose strengthening currency swap linesExpansion will offer better safeguards vs pandemic, disastersINCHEON, May 2 (Reuters) - Asian finance leaders will on Tuesday look for ways to tighten safeguards to address emergency funding needs during pandemics and natural disasters, as global recession fears and volatile financial markets cloud the economic outlook. Japan, which co-chairs this year's meeting with Indonesia, hopes to discuss strengthening currency swap lines, Finance Minister Shunichi Suzuki told reporters on Friday. Japan is keen to propose a facility that enhances the use of existing currency swap lines, and allows members to tap funds in emergencies, said three sources with direct knowledge of the matter. But the swap lines have never been used, not even during the COVID-19 pandemic, leading to calls within the group for the system to be more accessible. The ASEAN+3 finance leaders, including Suzuki and Bank of Japan (BOJ) Governor Kazuo Ueda, are meeting on the sidelines of the ADB's annual meeting in Incheon in South Korea this week.

SummarySummary Companies Japan, S.Korea must address geopolitical challenges - SuzukiS.Korea's Choo urges Japan to restore 'white list' statusResumption of dialogue underscores mending relationsINCHEON, South Korea May 2 (Reuters) - Japan and South Korea held their first bilateral finance leaders' meeting in seven years on Tuesday, a sign relations between the two are thawing amid shared challenges from geopolitical tensions and slowing economic growth. The resumption of bilateral financial talks comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea next week for talks with President Yoon Suk Yeol. "As for geo-political challenges, we're experiencing incidents like North Korea's nuclear missile development and Russia's invasion of Ukraine. Regular annual dialogue between the two countries' finance ministers has been suspended since 2016 due to disputes over wartime history. Suzuki said he hoped Japan and South Korea can continue with bilateral financial dialogue and that doing so would contribute to improving relations between the two countries.

☆ Japan, South Korea finance ministers meet for 1st bilateral meeting in 7 years
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: 1 min

INCHEON, South Korea May 2 (Reuters) - Japanese Finance Minister Shunichi Suzuki and his South Korean counterpart Choo Kyung-ho on Tuesday met on the sidelines of the Asian Development Bank (ADB) annual meetings held this week. It was the first bilateral finance leaders' meeting in seven years, highlighting improving relations between Japan and South Korea in the face of North Korea's frequent missile launches and China's more muscular role on the global stage. Reporting by Leika Kihara and Jihoon Lee Editing by Chang-Ran KimOur Standards: The Thomson Reuters Trust Principles.

☆ Japan, South Korea hold first finance leaders' meeting in seven years
▼ + stars: | 2023-05-02 | by ( ) www.cnbc.com time to read: +1 min

Japan Finance Minister Shunichi Suzuki arrives for the G20 Finance Ministers and Central Bank Governors meeting on April 13, 2023. Japan and South Korea held their first bilateral finance leaders' meeting in seven years on Tuesday, a sign relations between the two are thawing as they confront shared challenges from geopolitical tensions and slowing economic growth. The two countries agreed to resume regular finance dialogue "at an appropriate timing," Japanese Finance Minister Shunichi Suzuki told reporters after the meeting. The resumption of bilateral financial discussions comes ahead of Japanese Prime Minister Fumio Kishida's planned visit to South Korea next week for talks with President Yoon Suk Yeol. "Japan and South Korea are important neighbors that must cooperate to address various challenges surrounding the global and economy, as well as the regional and international community," Suzuki said at the meeting with his South Korean counterpart Choo Kyung-ho.

☆ S.Korea finmin: S.Korea, Japan, China cooperation more important as world economy at inflection point
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: 1 min

INCHEON, South Korea, May 2 (Reuters) - South Korea's finance minister said on Tuesday that the trilateral cooperation between South Korea, Japan and China has became more important as the global economy stands at an inflection point. Minister Choo Kyung-ho said such cooperation would not only help the three countries, which account for more than 20% of the world economy, but also the Asian region and the world, during his opening remarks at a trilateral meeting of finance ministers and central bank governors. The countries' economic leaders met on the sidelines of the Asian Development Bank's annual meeting of the board of governors held in Incheon, South Korea. Reporting by Jihoon Lee; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

SummarySummary Companies ASEAN+3 finance leaders meet in Incheon, South Korea, TuesdayJapan hopes to propose strengthening currency swap linesExpansion will offer better safeguards vs pandemic, disastersINCHEON, May 2 (Reuters) - Asian finance leaders on Tuesday will debate ways to beef up regional safeguards to better address emergency funding needs during pandemics and natural disasters, as global recession fears and volatile financial markets cloud the economic outlook. Japan, which co-chairs this year's meeting of ASEAN+3 nations with Indonesia, hopes to discuss strengthening currency swap lines, Finance Minister Shunichi Suzuki told reporters on Friday. Japan is keen to propose a facility that enhances usage of existing currency swap lines, and allows members to tap funds in times of emergencies such as pandemics and natural disasters, said three sources with direct knowledge of the matter. But the swap lines have never been used, including during the COVID-19 pandemic, giving rise to calls from within the group to make the system more easily accessible in the event of shock events. The ASEAN+3 finance leaders, including Suzuki and Bank of Japan (BOJ) Governor Kazuo Ueda, are meeting on the sidelines of the ADB's annual meeting in Incheon in South Korea this week.

Growth came mostly from exports, the result of a revival in global trade as China re-opened for business after the pandemic. But national data showed price growth remained stubbornly high, probably leaving the ECB with no choice but to keep raising interest rates. Friday's inflation data showed progress was slow. IMF CALLS FOR MORE RATE HIKESMoney markets currently price in another 70 basis points of ECB rate hikes by October, possibly followed by cuts as early as the start of next year. It also said European Union finance ministers should tighten fiscal policy in concerted action to bring down high inflation, which would probably depress consumption further.

☆ Morning Bid: Amazon cools, Intel warms, Japan hesitates
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +5 min

[1/2] A smartphone with a displayed Intel logo is placed on a computer motherboard in this illustration taken March 6, 2023. But the dramatic re-acceleration of Big Tech stocks this week - where the NYFANG+TM (.NYFANG) index of the top 10 Big Tech stocks is now up 37% so far this year - is competing with multiple macro narratives that are increasingly hard to read. With the Fed meeting in view, the release of March PCE price inflation data later on Friday tops the diary. Wall St stock futures fell back 0.4% after a wild ride in Amazon.com shares overnight. With much of Europe and Asia closed on Monday for the May Day bank holiday, Asia bourses advanced in Wall St's slipstream but Europe retreated sharply on some jarring corporate updates.

"It's not as if we're heading into a major crisis now," Suzuki said. Suzuki said he plans to attend the ASEAN+3 meeting on Tuesday, to be held on the sidelines of the Asian Development Bank's (ADB) annual meeting in Incheon in South Korea next week. The Bank of Japan also said its Governor Kazuo Ueda will travel to Incheon on May 1-4 to attend the meetings. The International Monetary Fund has urged Asian central banks to keep monetary policy "tighter for longer" to combat still substantial inflation risks. Reporting by Leika Kihara; Editing by Sam HolmesOur Standards: The Thomson Reuters Trust Principles.

In March, depositors fled Silicon Valley Bank (SIVB.O), withdrawing $42 billion in 24 hours, some via their mobile phones. Information about the bank's difficulties spread fast online, creating a social media-driven bank run. Officials said the bank turbulence added urgency to discussions of a European Commission proposal to broaden the EU's bank resolution framework, now applied to just over 100 of the biggest European banks, to smaller and medium-sized lenders. The proposal, called Crisis Management and Deposit Insurance (CMDI) was requested by EU finance ministers in mid-2022. It would ensure that the resolution of smaller banks could be paid for from the EU's resolution fund, financed by banks, rather than by taxpayers.

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