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☆ EU converges on principles of new debt rules, no deal yet on details
▼ + stars: | 2023-03-14 | by ( Jan Strupczewski | ) www.reuters.com time to read: +3 min

Draft conclusions of a meeting of the EU's 27 finance ministers on Tuesday showed EU countries support much of the European Commission's proposal presented last November, but its practical implementation is still a challenge. Governments with higher debt would negotiate with the Commission individual debt reduction paths linked to reforms and investments, departing from a one-size-fits-all rule of annual debt cuts of 1/20th of the excess above 60% of GDP. Since many EU countries have debt well above the EU limit, they would get between four and seven years to put it on a downward path that would be negotiated with the Commission on the basis of a Commission debt sustainability analysis. This would be an improvement on the unobservable and revision-prone structural deficit which is the focus now, and which finance ministers strongly dislike. TRICKY DETAILSWhile there is convergence among EU finance ministers on these points, there are equally many on which they disagree.

☆ Morning Bid: Bank stress, bond volatility and disinflation
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +5 min

But the implications of this sudden bout of financial instability - and its potential economic and policy fallout - were most clearly seen in the interest rate and bond markets. Implied terminal rates for the European Central Bank and Bank of England have been dramatically scaled back too - though one or two further hikes are still priced for those central banks. But the Fed rethink has led to seismic action on the U.S. Treasury market, with the biggest drop in 2-year Treasury yields on Monday since the stock market crash of 1987. Credit spreads in the corporate bond markets have also widened sharply as investors fear an economy-wide tightening of borrowing standards and financial conditions. It would certainly think twice about tightening policy again into this level of financial stress and bond market upheaval.

☆ "Calm down!" EU finance ministers play down SVB contagion despite banking shares rout
▼ + stars: | 2023-03-13 | by ( Philip Blenkinsop | ) www.reuters.com time to read: +3 min

SummarySummary Companies European bank shares down nearly 10% over two daysMinisters try to soothe markets as investors dump bank stocksFrance's Le Maire: "calm down!" BRUSSELS, March 13 (Reuters) - European finance ministers and the EU's economics commissioner played down the contagion risk of the collapse of U.S. Silicon Valley Bank (SVB) while European bank shares saw their biggest rout since the start of Russia's invasion of Ukraine. At the start of a Eurogroup finance ministers meeting in Brussels, French Finance Minister Bruno Le Maire called on markets to "calm down" and European Economic Commissioner Paolo Gentiloni stressed he did not see a risk of contagion for European banks following SVB's collapse (SIVB.O). France's Le Maire and his Belgian counterpart Vincent Van Peteghem also said they saw no specific concern for their country's banks, as investors were dumping their financial institutions' shares. Belgian finance minister Vincent Van Peteghem also poured oil on the waters.

☆ Morning Bid: Banks rescued, rates recoil, stress builds
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +5 min

Early last week as much as a half point rate hike was almost fully priced. Now back as low as 4.8%, the implied peak Fed rate for the cycle has plummeted almost a full percentage point over that time. Goldman Sachs now says it no longer expects the Fed to raise rates on March 21-22. The Federal Reserve also made it easier for banks to borrow from it in emergencies. More broadly, the implications for Fed monetary policy caused most ructions and complicated overall index direction that's torn between bank losses and the repricing of rates.

☆ U.S. Jews Set to Shun Israeli Finance Minister Bezalel Smotrich on Washington Visit
▼ + stars: | 2023-03-10 | by ( Aaron Boxerman | ) www.wsj.com time to read: 1 min

Major American-Jewish organizations say they will boycott Israeli Finance Minister Bezalel Smotrich during his Sunday visit to Washington, underlining the divide between some of Israel’s staunchest allies in the U.S. and far-right officials in Prime Minister Benjamin Netanyahu ’s government. Mr. Smotrich, a longtime leader of Israel’s religious nationalists, is traveling to Washington for a conference organized by Israel Bonds, a U.S.-based organization that promotes the purchase of Israeli government securities. Israeli finance ministers have traditionally attended similar conferences to drum up investment interest.

☆ In economics, women's voices still struggle to be heard
▼ + stars: | 2023-03-08 | by ( Maria Martinez | ) www.reuters.com time to read: +5 min

There seems to be a lot to celebrate on International Women's Day in the field of economics. Women head the International Monetary Fund, the World Trade Organization, the U.S. Treasury and the European Central Bank. "The pervasive underrepresentation of women in economics is systemic and structural," Ngozi Okonjo-Iweala, the first woman to head the World Trade Organization, told Reuters. "There are no women in the textbooks and most big names in economics are men," said Sandra Kretschmer, economics researcher and member of the Women in Economics Initiative. Women and men tend to have different research interests, said Alisa Weinberger, economics researcher at Goethe.

☆ Saudi Arabia drops $5 billion in Turkey's central bank to help its struggling economy
▼ + stars: | 2023-03-06 | by ( Natasha Turak | ) www.cnbc.com time to read: +2 min

Saudi Minister of Finance Mohammed Al-Jadaan speaks during a meeting of Finance ministers and central bank governors of the G20 nations in the Saudi capital Riyadh on February 23, 2020. Saudi Arabia agreed to deposit $5 billion into Turkey's central bank through its Saudi Fund for Development, the fund said in a statement Monday. The decision is "a demonstration of the Kingdom of Saudi Arabia's commitment to supporting Turkey's efforts to strengthen its economy," the statement said. Turkey's inflation is still above 55%, and its currency is hovering near record lows against the dollar after several years of policy intervention by Turkish President Recep Tayyip Erdogan, who resisted raising interest rates despite mounting inflation. In the years since, the countries had used various means to unofficially boycott each other's products and flights or block each other's media outlets.

☆ France says sanctions against Russia are 'very efficient' as more are being considered
▼ + stars: | 2023-02-27 | by ( Sumathi Bala | ) www.cnbc.com time to read: +5 min

watch nowFrance's finance minister told CNBC that additional sanctions are being considered against Russia for its unjustified war against Ukraine, as current measures have proven to be "very efficient." When you are looking at the assets that have been frozen — more than $58 billion, you can say that sanctions against Russia are efficient," said the finance minister. Bruno Le Maire French finance ministerThe European Union recently ramped up its oil sanctions against Russia. The Group of 7 implemented a $60 price cap on Russian oil on Dec. 5. Reuters reported that the G-7 economies agreed to review the level of the price cap on exports of Russian oil in March.

☆ Yellen says 'absolutely necessary' for G20 to condemn war in Ukraine
▼ + stars: | 2023-02-25 | by ( David Lawder | ) www.reuters.com time to read: +2 min

BENGALURU, Feb 25 (Reuters) - U.S. Treasury Secretary Janet Yellen told Reuters that a strong statement condemning Russia's war in Ukraine was "absolutely necessary" for a communique from the G20 finance leaders' meeting in India concluding on Saturday. Asked whether there would be no communique from the G20 finance ministers and central bank governors meeting without such a statement, Yellen said negotiations were continuing. We've had it in the past, in Bali and it's something that I think is absolutely necessary," Yellen said. G20 chair India is pressing the meeting to avoid using the word "war" in any communique, G20 officials have told Reuters. In Bali, the G20 leaders issued a statement that read: "Most members strongly condemned the war in Ukraine," signaling that Russia, a member of G20, had opposed the wording.

☆ Yellen says U.S. inflation coming down but core measures remain elevated
▼ + stars: | 2023-02-24 | by ( David Lawder | ) www.reuters.com time to read: +1 min

[1/2] U.S. Treasury Secretary Janet Yellen speaks during a news conference as G20 finance leaders gathered on the outskirts of Bengaluru, India, February 23, 2023. REUTERS/Samuel RajkumarBENGALURU, Feb 24 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Friday that U.S. inflation was coming down but there was still more work to do to bring it in line with the Federal Reserve's 2% annual target. "Inflation is coming down if you measure it on a 12 month basis, but still core inflation, which I think will fall further, remains higher than is consistent with 2%," she said, referring to the Fed's target rate. Echoing comments she made on Thursday that the U.S. and global outlooks were improving despite ongoing pressures from the war in Ukraine, Yellen said the U.S. economy is "fundamentally in good shape." You know, we don't have balance sheet problems of the type that we had prior to the (2008-2009) global financial crisis," Yellen said referring to high debt levels and crashing home prices of that era.

"I think that we have a very good candidate for the World Bank," French Finance Minister Bruno Le Maire said of Banga during a news conference at the G20 finance leaders meeting in India. The comments marked a turnabout from Tuesday, when Germany's international development minister, Svenja Schulze, who represents a different party in Germany's coalition government, said the next World Bank chief should be a woman. The G20 ministers meeting is being held on the outskirts of the Indian tech hub city of Bengaluru. 'UNIQUE SET OF SKILLS'The United States, the lender's dominant shareholder, has chosen every World Bank president since the founding of the institution at the end of World War Two. World Bank staff are bracing for Banga to make some management changes at the bank, emboldened by Yellen's repeated calls for "bolder and more imaginative" action by the bank, two bank sources told Reuters.

☆ Wealthy G7 nations gearing up for new volley of sanctions on Russia
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

Leaders of the bloc of developed nations will meet virtually on Friday with Ukrainian President Volodymyr Zelenskiy to mark the one-year anniversary of Russia's invasion, and are expected to announce the sanctions package. Current G7 president Japan said it was considering new measures, without giving any details, and called for a unified stance towards Moscow. "Russia is refusing to change their hardline stance," Japanese Prime Minister Fumio Kishida said at a news conference to mark the anniversary. India, which has maintained a neutral stance on the conflict, does not want the G20 to discuss additional sanctions on Russia. Speaking at the G20, U.S. Treasury Secretary Janet Yellen accused Russian officials of being "complicit" in atrocities in Russia's invasion of Ukraine.

BENGALURU, Feb 24 (Reuters) - The United States and China will hold deputy-level talks between their finance officials on Friday to discuss debt and other issues on the sidelines of a G20 finance meet in India, two sources familiar with the matter told Reuters. U.S. Treasury Secretary Janet Yellen said on Thursday, ahead of a meeting of G20 finance ministers and central bank governors near Bengaluru, that communication between the United States and China was important for "the sake of the entire globe". China's Ministry of Finance and its central bank did not immediately respond to a request seeking comment. The United States has repeatedly criticised China over what it considers to be "foot-dragging" on debt relief for dozens of low-and middle-income countries including Sri Lanka. China, the world's largest bilateral creditor, urged G20 nations on Friday to conduct a fair, objective and in-depth analysis of the causes of global debt issues and to "resolve the problem in a comprehensive and effective manner."

Participants at the meeting, however, are likely to focus on the war in Ukraine. The G20 bloc includes the wealthy G7 democracies, as well as Russia, China, India, Brazil and Saudi Arabia. French Finance Minister Bruno Le Maire told Reuters that G20 financial leaders must condemn Russia's aggression against Ukraine and that Europe was working on new sanctions against Moscow. G7 chair Japan's finance minister, Sunichi Suzuki, told reporters that the group would closely monitor the effectiveness of sanctions and "take further actions as needed". German Finance Minister Christian Lindner said the pressure on Russia must be kept high to "completely isolate" Russia's economy.

☆ G20 finance leaders to gauge toll on global economy on Ukraine war's anniversary
▼ + stars: | 2023-02-24 | by ( David Lawder | ) www.reuters.com time to read: +3 min

BENGALURU, Feb 24 (Reuters) - Global finance leaders will tally the economic damage from Russia's war in Ukraine on Friday as they meet on the conflict's first anniversary with some voicing concerns that more sanctions on Moscow would disrupt a modest improvement in growth. U.S. Treasury Secretary Janet Yellen on Thursday highlighted the improvement, saying the global economy "is in a better place today than many predicted just a few months ago". Yellen and fellow G7 ministers on Thursday called for more financial support for Ukraine and vowed to maintain tough sanctions on Russia. German Finance Minister Christian Lindner said the pressure on Russia must be kept high to "completely isolate" Russia's economy. Yellen said the communique was still under discussion and she hoped to see a strong condemnation of Russia's invasion and the damage it has caused Ukraine and the global economy.

☆ India urges focus on 'most vulnerable' at G-20 meeting, avoids mention of war
▼ + stars: | 2023-02-24 | by ( ) www.cnbc.com time to read: +1 min

Delegates arrive at the venue in Bengaluru where a meeting under India's G20 Presidency has begun on Feb. 22, 2023. Indian Prime Minister Narendra Modi urged global financial leaders to focus on the world's "most vulnerable citizens" as he inaugurated a G-20 meeting on Friday, the first anniversary of Russia's invasion of Ukraine. "I would urge that your discussions should focus on the most vulnerable citizens of the world," he said, adding that stability, confidence and growth had to be brought back to the world economy. Participants at the meeting, however, are likely to focus on the war in Ukraine. The G20 bloc includes the wealthy G-7 democracies, as well as Russia, China, India, Brazil and Saudi Arabia.

☆ Indian PM Modi urges G20 to focus on unsustainable debt
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Feb 24 (Reuters) - The financial viability of many countries is being threatened by unsustainable debt, India's Prime Minister Narendra Modi said on Friday, as he called for the Group of 20 (G20) to focus on the world's most vulnerable citizens. Even the financial viability of many countries is threatened by unsustainable debt levels," Modi said. Many societies are suffering due to rising prices," Modi said in his address to delegates. Reuters reported last week that India is drafting a proposal for G20 countries to help debtor nations by asking lenders, including China, the world's largest sovereign creditor, to take a large haircut, or accept losses, on loans. Reporting by Swati Bhat and Shilpa Jamkhandikar; editing by Sudipto Ganguly, Robert BirselOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: War and PCE
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike DolanWith world headlines focussed on first anniversary of Russia's invasion of Ukraine, the inflationary consequences that pounded world markets last year still smoulder. Curiously, the initial energy shock from the Ukraine war is already less of a problem than the change in pricing behaviour that it seeded - especially in services still distorted by the pandemic, in corporate margin building and rising wage settlements. But it's the pickup and stickiness in underlying "core" prices, excluding energy and food, that is irking the central banks and the Federal Reserve most of all. Alongside another tight U.S. weekly jobs report, markets got another glimpse of those price pressures on Thursday. And increasingly buoyed by the still intense geopolitical fallout from a year of the war in Ukraine, the dollar pushed higher yet again.

☆ China calls for 'joint action' in debt settlements at G20
▼ + stars: | 2023-02-24 | by ( Joe Cash | ) www.reuters.com time to read: +3 min

BEIJING, Feb 24 (Reuters) - China, the world's largest bilateral creditor, urged G20 nations on Friday to conduct a fair, objective and in-depth analysis of the causes of global debt issues and to "resolve the problem in a comprehensive and effective manner." The United States has repeatedly criticised China over what it considers to be "foot-dragging" on debt relief for dozens of low-and middle-income countries. According to a statement released by his ministry, Liu said that international financial institutions and commercial creditors should follow the principle of "joint action, fair burden" in debt settlements. Officials from the IMF, the World Bank and G7 nations will meet on Saturday on the sidelines of the G20 meeting for the first in-person discussions of the new IMF Global Sovereign Debt Roundtable. China's role in the G20 Common Framework, however, is expected to feature in Saturday's talks.

☆ G7 raises Ukraine support to $39 bln for 2023, urges IMF programme by March
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

[1/2] FILE PHOTO-Flags are pictured during the first working session of G-7 foreign ministers in Muenster, Germany, November 3, 2022. Ukraine is hoping to clinch a $15 billion programme with the International Monetary Fund that will cover immediate financial assistance and support for structural reforms to underpin efforts at post-conflict rebuilding. "For 2023, based on the Government of Ukraine's needs, we have increased our commitment of budget and economic support to $39 billion," the statement said. The bloc's financial leaders have gathered in India's Bengaluru ahead of a meeting of financial chiefs of the Group of 20 (G20) nations. Japan's Finance Minister Shunichi Suzuki also told reporters that the G7 needs to assess the effectiveness of current sanctions on Russia before deciding on further action.

☆ India finance minister and U.S. Treasury's Yellen discuss debt, crypto
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

[1/3] Indian Finance Minister Nirmala Sitharaman speaks during a side event on the G20 Finance Ministers and Central Bank Governors Meeting in Nusa Dua, Bali, Indonesia, 14 July 2022. Made Nagi/Pool via REUTERSBENGALURU, Feb 23 (Reuters) - Indian Finance Minister Nirmala Sitharaman and U.S. Treasury Secretary Janet Yellen discussed strengthening multilateral development banks, global debt vulnerabilities and crypto assets on the sidelines of the G20 finance chiefs meeting on Thursday, the finance ministry said. India is hosting the first major G20 event under its year-long presidency at the summer retreat of Nandi Hills near tech hub Bengaluru. "The two leaders discussed their perspectives on strengthening MDB (multilateral development banks), global debt vulnerabilities, crypto assets besides the Just Energy Transition Partnership," New Delhi's finance ministry said in a tweet. Under the partnership, the United States and its allies, as well as multilateral development banks and agencies, provide funding to developing economies to move away from coal production and consumption.

☆ Morning Bid: Blue chips cheered up
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +5 min

[1/2] The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. Its CEO Jensen Huang said use of its chips to power AI had "gone through the roof in the last 60 days." The Federal Reserve at least seems keen on the higher-for-longer message that's shaken world stock and bond markets this week. And as the minutes pre-date red-hot jobs and retail data for January, the message from Fed officials is probably even sterner now. A Reuters poll of equity analysts showed global stock markets are expected to correct in the next three months.

☆ As G20 finance chiefs gather, Yellen calls for more economic aid to Ukraine
▼ + stars: | 2023-02-23 | by ( David Lawder | ) www.reuters.com time to read: +4 min

"Continued, robust support for Ukraine will be a major topic of discussion during my time here in India." Yellen said that previous U.S. military, economic and humanitarian aid totalling $46 billion has allowed Ukraine to preserve economic and financial stability under "extraordinary circumstances." In the coming months, we expect to provide around $10 billion in additional economic support for Ukraine." Yellen said that G20 countries, especially China, need to work to ease the debt overhang that is putting more than half of low-income countries in debt distress. The United States intends to put forward a candidate for the World Bank presidency "very quickly", she added.

☆ Indonesia says it's working to become more resilient to inflation shocks from the U.S.
▼ + stars: | 2023-02-23 | by ( Sumathi Bala | ) www.cnbc.com time to read: +1 min

Indonesia is taking steps to make its economy more resilient so it can withstand global shocks like inflation, especially from the United States, said Finance Minister Sri Mulyani Indrawati. As the world's largest economy, what the U.S. does has strong implications worldwide, including Indonesia, said the minister. To fight inflation, the U.S. has hiked interest rates, which has affected capital outflows because of the strengthening of the dollar, Sri Mulyani told CNBC's "Street Signs Asia" on Thursday. That includes "making sure first that the financial sector is healthy and strong for this interest rate movement. In early February, the U.S. Federal Reserve raised its benchmark interest rate by a quarter percentage point and gave little indication it is nearing the end of this hiking cycle.

☆ Bank of Japan to maintain easy monetary policy - governor
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

[1/3] Bank of Japan Governor Haruhiko Kuroda speaks during a news conference after a meeting of G7 leaders on the sidelines of G20 finance ministers' summit on the outskirts of Bengaluru, India, February 23, 2023. REUTERS/Samuel RajkumarBENGALURU, Feb 23 (Reuters) - The Bank of Japan intends to maintain easy monetary policy and the government's energy assistance programme will hold down inflation, the central bank's governor Haruhiko Kuroda told a news conference at a G20 event on Thursday. The governor expects inflation to be below 2% for fiscal 2023 and fiscal 2024, adding that Japan is no longer in a deflationary environment. Given that import prices have fallen, the Japanese government's energy assistance will aid in holding down inflation, Kuroda said. India is hosting the first major G20 event under its year-long presidency at the summer retreat of Nandi Hills near tech hub Bengaluru.

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