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☆ Europe’s shrinking stash heralds economic trouble
▼ + stars: | 2023-11-14 | by ( Francesco Guerrera | ) www.reuters.com time to read: +7 min

But the interest they earned on their assets increased from 16 billion euros to 66 billion euros in the same period. As a result, euro zone firms’ net interest was negative 19 billion euros in the second quarter of 2023. These financial gains may have helped euro zone growth. A further 700 billion euros matures in 2026. Homeowners with mortgages, which account for around 27% of euro zone households, are yet to feel the brunt of higher rates.

Persons: That’s, Mathieu Savary, Gross, Peter Thal Larsen, Oliver Taslic, Thomas Shum Organizations: Reuters, European Central Bank, Reuters Graphics Reuters, ECB, BCA Research, Oxford Economics, International Monetary Fund, Oxford, IMF, Thomson Locations: Oxford, Spain, Italy, France, Germany, United States, China

WASHINGTON (AP) — The United States and China are the two global economic heavyweights. The meeting will bring together 21 Pacific Rim countries, which collectively represent 40% of the world’s people and nearly half of global trade. Indeed, imports of Chinese goods to the United States were down 24% through September compared with the same period of 2022. Xi, too, has reason to try to restore economic cooperation with the United States. “This will not be an easy sell.’’Complicating matters is that the tensions between Washington and Beijing go well beyond economics.

Persons: Joe Biden, Xi, Eswar Prasad, “, Prasad, Donald Trump, Trump, Biden, Chad Bown, Janet Yellen, Lifeng, —, ” Yellen, ’ ’, Wendy Cutler, Raja Krishnamoorthi, ’ ’ Krishnamoorthi, ’ Organizations: WASHINGTON, International Monetary Fund, “, Cornell University, Economic Cooperation, Biden, World Trade Organization, U.S, Peterson Institute for International Economics, Prosperity, Trump, Group, Bain & Co, Micron, IMF, United, Asia Society Institute, Chinese Communist Party, Republicans, Pew Research Center, Center for Strategic, International Studies, Rep, Illinois Democrat Locations: United States, China, Washington, Beijing, U.S, Ukraine, Gaza, Asia, San Francisco, Shanghai, Hong Kong, Xinjiang, India, Philippines, South China, Taiwan, Chinese, Kenya, Nigeria, Illinois

☆ Bank of America: 20 stocks with secure dividends that can help you sleep better at night
▼ + stars: | 2023-11-12 | by ( Mark Reeth | ) www.businessinsider.com time to read: +1 min

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). The stock market is limping into the end of the year, and investors are hard pressed to find safety. Bank of America found stocks with sustainable dividends to take advantage of a shift in markets. These 20 stocks with dividend yields of over 4% can help give investors peace of mind. The world is shifting underfoot seemingly day by day.

Persons: Jerome Powell Organizations: Bank of America

U.S. Federal Reserve officials are puzzling over why bond borrowing rates spiked lately even as Fed policy expectations have remained largely unchanged. Whether a resurfacing "term premium'" now demanded to buy and hold longer-term bonds, is responsible is central to the conundrum. Britain's brief budget and debt shock late last year and the way the Bank of England was forced to react was perhaps a taster. "Once current debt has been refinanced and the average interest on debt reflects the higher long rates, absent changes in policy, debt ratios will increase," Blanchard wrote. The opinions expressed here are those of the author, a columnist for Reutersby Mike Dolan Editing by Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

Persons: Marcos Brindicci, Olivier Blanchard, Washington's, Blanchard, it's, Morgan Stanley, Mike Dolan, Marguerita Choy Organizations: REUTERS, . Federal Reserve, Bank of England, International Monetary Fund, Washington's Peterson Institute for International Economics, U.S, Congressional, Reuters, Thomson Locations: Buenos Aires, Argentina, United States, Europe

☆ Take Five: That rate cut trade
▼ + stars: | 2023-11-10 | by ( ) www.reuters.com time to read: +5 min

REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsLONDON, Nov 10 (Reuters) - Markets are keen to trade rate cuts and big central banks are pushing back, shining a new light on upcoming data in that tug of war. Traders, anticipating roughly three quarter-point Fed rate cuts next year, will now turn their attention to Tuesday's inflation data to confirm their view on the outlook. A sharper cooling could fan the peak rate talk, fuelled by October's employment report, which pointed to an easing in labor markets. Reuters Graphics Reuters Graphics3/ ONCE BITTENThe robust dollar suddenly appears vulnerable to the push and pull in the market's Fed rate cut bets. The data could also help justify, or challenge, recent remarks from BoE chief economist Huw Pill that mid-2024 could be the time for rate cuts.

Persons: Brendan McDermid, Lewis Krauskopf, Kevin Buckland, Danilo Masoni, Alun John, Dhara, Jerome Powell, Ping, Powell, Rishi Sunak, Sunak, BoE, Huw Pill, Sumanta Sen, Pasit, Riddhima Talwani, Prinz Magtulis, Jayaram, Dhara Ranasinghe, Tomasz Janowski Organizations: New York Stock Exchange, REUTERS, Traders, Reuters, Beijing, Reuters Graphics Reuters, Bank of England, Thomson Locations: New York City, U.S, China, New York, Tokyo, Milan, London, Washington, September's, Germany, Europe, ITALY, Italy

U.S. Federal Reserve officials are puzzling over why bond borrowing rates spiked lately even as Fed policy expectations have remained largely unchanged. Whether a resurfacing "term premium'" now demanded to buy and hold longer-term bonds, is responsible is central to the conundrum. Britain's brief budget and debt shock late last year and the way the Bank of England was forced to react was perhaps a taster. "Once current debt has been refinanced and the average interest on debt reflects the higher long rates, absent changes in policy, debt ratios will increase," Blanchard wrote. US debt costs soarRates minus Growth hits budget mathCBO's long-term debt projectionsDYSFUNCTION AND EXPLOSIONThere were tinges of optimism though.

The Gaza war on the border with Egypt's Sinai Peninsula comes after the impact of Russia's invasion of Ukraine and the coronavirus pandemic exposed long-standing frailties in the Egyptian economy. "Foreign sentiment on Egypt is so weak, and now with this coming along it's last thing that Egypt needed. A foreign currency shortage has led to a $5 billion backlog of imports stuck at ports, and problems for foreign companies repatriating dividends, bankers say. So far, the Gaza war has affected the popular Sinai destinations of Taba, Nuweiba, Dahab and Sharm el-Sheikh but left the rest of the country relatively unscathed. Egypt's tourism minister told Reuters this week that the impact of the war was contained to under 10% of bookings.

Persons: Mohamed Abd El Ghany, Monica Malik, Moataz, Sharm, Karim ElMinabawy, Siamak Adibi, Egypt's, Olumide Ajayi, Malik, Patrick Werr, Sarah El Safty, Aidan Lewis, Toby Chopra Organizations: REUTERS, Abu, Tourism, Countrywide, Emeco, Middle East Gas, FGE, United Arab, Thomson Locations: Giza, Cairo, Egypt, CAIRO, Gaza, Ukraine, Dhabi, Taba, Dahab, Luxor, Aswan, Israel, Europe, Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Gulf . Saudi

☆ Morning Bid: 'Not confident' Powell drags markets lower
▼ + stars: | 2023-11-10 | by ( ) www.reuters.com time to read: +3 min

Since the Fed left rates unchanged last week, markets had increasingly grown confident that the peak in U.S. rates was in sight. But up stepped Powell to squash any hopes of an impending rate cut. "[The Fed] is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2% over time," Powell said. That led stocks lower, with MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) skidding 1% to their lowest in a week. The rise in yields boosted the dollar, which is headed for its best week against the yen in three months.

Persons: Jerome Powell, Kevin Lamarque, Ankur Banerjee, Powell, Christine Lagarde, Walt Disney, policymaker Joachim Nagel, SNB's Thomas Moser, Edmund Klamann Organizations: Monetary Fund's, REUTERS, Ankur, European bourses, Treasury, Industrial, Commercial Bank of China's, U.S . Treasury, Reuters, Thomson Locations: Washington , U.S, Asia, Pacific, Japan, European, U.S, Commercial Bank of China's U.S, Norway, Sweden

☆ Watch Fed Chair Jerome Powell speak live to an IMF panel on monetary policy
▼ + stars: | 2023-11-09 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Please refresh the page if you do not see a player above at that time.] Federal Reserve Chair Jerome Powell speaks Thursday to a monetary policy panel presented by the International Monetary Fund. The U.S. central bank leader's remarks follow a Fed decision last week to hold benchmark policy rates at their current level, in a target range between 5.25%-5.5%. However, Powell has cautioned that should inflation persist, he won't hesitate to push for higher rates. In fact, markets expect the Fed to start cutting in 2024, possibly as soon as June.

Persons: Jerome Powell, Powell, Read, Jamie Dimon Organizations: International Monetary Fund, The, Federal, CME, CNBC, YouTube Locations: The U.S, U.S

☆ Laos is spiraling toward a debt crisis as China looms large
▼ + stars: | 2023-11-09 | by ( Nyshka Chandran | ) www.cnbc.com time to read: +1 min

An alarming debt crisis has unfolded in Laos in recent years, raising worries about the tiny nation's obligation to its biggest creditor — China. China became the largest foreign investor in Laos in late 2013 and since then, its influence has only continued to skyrocket. Laos borrowed billions from President Xi Jinping's government to finance railways, highways and hydroelectric dams, depleting its foreign reserves in the process. It's widely feared the country may be on the brink of economic collapse if the economic crisis spins out of control. But without a clear-cut debt reduction deal with China, Laos' financial hardships will not likely ease, analysts warn.

Persons: Xi Jinping's, kip Organizations: Initiative, U.S ., Asian Development Bank Locations: Vientiane, Laos, China, Beijing

☆ Exclusive: Inside IMF, stance hardens on Argentina as $44 bln deal skids off track
▼ + stars: | 2023-11-09 | by ( Jorgelina Do Rosario | Thomson Reuters | Jorgelina Do Rosario Is Emerging Markets Correspondent At Reuters Based In London | ) www.reuters.com time to read: +5 min

With "depleted reserves and an overvalued currency, recent economic measures are not aligned with the programme," a second source added. In an August report, the IMF said that Argentina's programme had gone off track, but allowed for changes in some goals - such as easing reserves targets - to put it back on course. It also comes at a sensitive time for the cash-strapped country, which has a review of the programme scheduled for early November. During the Oct. 30 meeting, a representative for Argentina said that the country was committed to remain current with IMF payments, one source added. Reporting by Jorgelina do Rosario in London Editing by Karin Strohecker and Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

Persons: Agustin Marcarian, Sergio Massa, Javier Milei, Mauricio Macri's, Jorgelina, Karin Strohecker, Matthew Lewis Organizations: Argentine, REUTERS, Monetary Fund, JPMorgan, IMF, Argentina's, Farmers, Peronist Economy, Argentina, Peronist, Thomson Locations: Argentina, Rosario, Washington, London

☆ Fed's Powell resumes speech at IMF after climate activists' protest
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +1 min

[1/2] Climate protesters interrupt an event with Federal Reserve Chair Jerome Powell at the International Monetary Fund, in Washington, DC, U.S., November 9, 2023. REUTERS/Howard Schneider Acquire Licensing RightsCompanies International Monetary Fund FollowNov 9 (Reuters) - Climate activists on Thursday took over a stage inside the secured headquarters of the International Monetary Fund where Federal Reserve Chair Jerome Powell and Israeli central bank Governor Amir Yaron were speaking at a research conference. "End fossil finance," the protesters shouted as Powell was ushered off the stage by security. It was the second time in weeks that an event attended by the Fed chief was disrupted by climate activists. A group took over the stage at an event featuring Powell in New York on Oct. 24.

Persons: Jerome Powell, Howard Schneider, Amir Yaron, Powell, Yaron, Powell's, Spokespeople, Ann Saphir, Mark Porter, Andrea Ricci, Paul Simao Organizations: Federal, International Monetary Fund, REUTERS, International Monetary, Fed, IMF, Thomson Locations: Washington , DC, Israeli, New York

"The revenue service is already organizing the implementation of this minimum taxation on multinationals," she said in an interview on Wednesday. The revenue service did not immediately respond to a request for comment. It advocates that this mechanism will ensure that large multinational companies pay a minimum 15% tax on their profits in all jurisdictions where they operate to deter profit-shifting to tax-favorable locations. The OECD estimates that the global minimum tax, already under way in countries including South Korea and Japan, could generate up to $200 billion in additional annual revenue. She also said Brazil aims to go further in the global tax discussion to reduce differences between advanced and emerging economies and to promote the green agenda.

Persons: India Narendra Modi, Luiz Inacio Lula da Silva, Joe Biden, Rishi Sunak, Kenny Holston, Tatiana Rosito, Maria Carolina Sampaio, GVM, Rosito, Marcela Ayres, Bernardo Caram, Matthew Lewis Organizations: U.S, UK, Rights, Finance, Reuters, Organization, Economic Cooperation, Development, OECD, International Monetary Fund, Thomson Locations: India, Brazil, New Delhi, Rights BRASILIA, South Korea, Japan, United States, Rosito, Brasilia

However, the rally has run out of steam as several Fed policymakers this week pushed back against market expectations that the central bank will begin cutting interest rates soon. "The market got carried away regarding how soon it thought we would be seeing interest rate cuts being delivered. "But that was never the case and comments from various CB (central bank) officials this week have very much opened eyes to this." On the earnings front, shares of Walt Disney (DIS.N) rose 4.1% in premarket trade after the entertainment company exceeded Wall Street estimates for quarterly profit on higher attendance at its Shanghai and Hong Kong theme parks. MGM Resorts International(MGM.N) added 3.5% on beating third-quarter estimates for profit and revenue as the casino operator benefited from easing pandemic restrictions.

Persons: Brendan McDermid, Stuart Cole, Austan Goolsbee, Jerome Powell, Thomas Barkin, Walt Disney, Amruta Khandekar, Maju Samuel Organizations: Intercontinental Exchange Inc, New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal Reserve, Treasury, Equiti, CB, Chicago Fed, Wall, International Monetary Fund, Richmond Fed, Labor Department, Dow e, Walt, Arm Holdings, Theatre, AMC Entertainment, MGM Resorts International, Thomson Locations: U.S, Shanghai, Hong Kong

☆ Russia says it's no longer scared of western sanctions – but its economy is still under pressure
▼ + stars: | 2023-11-09 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Russia is no longer scared of western sanctions, a Kremlin spokesperson said last week. There are signs the economy is resilient, with growth holding firm and total wealth increasing in 2022. But western embargoes are still affecting Russia, as exports plunge and the ruble craters. Russia has also got richer despite the war with Ukraine, according to the UBS Global Wealth Report. However, those top-line figures don't mean sanctions aren't working – or that Russia's economy is in rude health.

Persons: —, Dmitry Peskov shrugged, that's, Vladimir Putin's Organizations: Kremlin, Service, International Monetary Fund, UBS Global Wealth, Bank of Locations: Russia, Ukraine, Moscow, Swiss, Bank of Russia

☆ Stock Market Today: S&P 500 Eyes 9-Day Winning Streak; Disney Stock in Focus
▼ + stars: | 2023-11-09 | by ( ) www.wsj.com time to read: +1 min

Stocks ticked lower Thursday, leaving the S&P 500's winning streak in jeopardy. Benchmark Treasury yields wavered. The benchmark index's last nine-day winning streak was in 2004. Treasury yields edged up. The yield on the 10-year Treasury ticked upward to 4.531%.

Persons: Eli Lilley, Jerome Powell Organizations: Disney, Benchmark, Treasury, Federal Locations: U.S, China

☆ ECB must keep rates at or near 4% through 2024 to get inflation down -IMF
▼ + stars: | 2023-11-08 | by ( ) www.reuters.com time to read: +3 min

"Monetary policy is appropriately tight and needs to remain so in 2024," Kammer told a news conference. "For all intents and purposes, (the deposit rate) should be held at that level or close to that level throughout 2024." Kammer warned the ECB against cutting rates too soon because that would require even more costly policy tightening later on. While the IMF sees price growth back at target in 2025, an exceptionally tight labour market could push this date back to 2026, it warned. Real wages also have some way to go catch up with inflation and this could also keep up the price pressure, the IMF said.

Persons: Ralph Orlowski, Alfred Kammer, Kammer, Balazs Koranyi, Mark Potter Organizations: European Union, European Central Bank, REUTERS, Rights, International Monetary Fund, ECB, IMF's European Department, IMF, Thomson Locations: Frankfurt, Germany, Gaza

FRANKFURT, Germany (AP) — The European Central Bank and other policymakers across Europe need to keep interest rates at current elevated levels until they're sure inflation is under control despite sluggish growth, the International Monetary Fund said Wednesday, warning against “premature celebration” as inflation declines from its peak. Alfred Kammer, director of the IMF's Europe department, warned against “premature celebration" as he spoke to journalists in connection with the outlook. The European Central Bank has raised its benchmark deposit rate by fully 4.5 percentage points between July 2022 and September 2023, from minus 0.5% to 4%. If inflation falls faster than expected, it will boost consumer real income and spending and growth might improve. But an escalation of Russia's war against Ukraine and accompanying increased sanctions and disruptions to trade could mean weaker growth.

Persons: Alfred Kammer, Kammer, “, ” Organizations: European Central Bank, International Monetary Fund, ECB, IMF, Ukraine Locations: FRANKFURT, Germany, Europe, Washington, Israel, Gaza

☆ ECB policy rates should stay tight to see disinflation through, IMF's Berger says
▼ + stars: | 2023-11-08 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailECB policy rates should stay tight to see disinflation through, IMF's Berger saysThe IMF's Deputy Director of the European Department, Helge Berger, discusses its latest European regional outlook.

Persons: IMF's Berger, Helge Berger Organizations: European Department

☆ IMF upgrades China's 2023, 2024 GDP growth forecasts
▼ + stars: | 2023-11-07 | by ( ) www.reuters.com time to read: +3 min

People wait to board trains at the Shanghai Hongqiao railway station ahead of the National Day holiday, in Shanghai, China September 28, 2023. GDP growth could slow to 4.6% in 2024 because of continued weakness in China's property sector and subdued external demand, the IMF said in a press release, albeit better than its October expectation of 4.2% in the IMF's World Economic Outlook (WEO). The combination of the downturn in the property sector and local government debt crunch could wipe out much of China's long-term growth potential, economists say. Local debt has reached 92 trillion yuan ($12.6 trillion), or 76% of China's economic output in 2022, up from 62.2% in 2019. China should also develop a comprehensive restructuring strategy to reduce the debt level of local government financing vehicles (LGFVs), she said.

Persons: Aly, IMF's, Gita Gopinath, Gopinath, LGFVs, Joe Cash, Ryan Woo, Edmund Klamann, Christopher Cushing Organizations: REUTERS, Rights, Monetary Fund, China's, Communist Party, Thomson Locations: Shanghai Hongqiao, Shanghai, China, Rights BEIJING, Gopinath

☆ Chinese leaders defend state of economy at global finance summit in Hong Kong
▼ + stars: | 2023-11-07 | by ( Michelle Toh | ) edition.cnn.com time to read: +6 min

Hong Kong CNN —Senior Chinese officials have defended the state of the world’s second largest economy at a conference in Hong Kong, telling global financiers not to worry about prospects in China despite an uneven recovery and ailing property market. “Since the beginning of the year, China’s economy has been picking up in general,” He said Tuesday at the Global Financial Leaders’ Investment Summit, which was organized by the Hong Kong Monetary Authority, the city’s de facto central bank. “Global investors have some concerns about China’s economy, including the pace of economic recovery, problems with property markets, and local government debt. “The potential of the Chinese economy remains promising,” he told the audience, which included the heads of Goldman Sachs, Citi and Morgan Stanley. A discussion on China at the Global Financial Leaders' Investment Summit in Hong Kong on Tuesday.

Persons: Lifeng, ”, Zhang Qingsong, ’ ”, “, Zhang, Goldman Sachs, Morgan Stanley, Peter Parks, ” Wang Jianjun, Wang Organizations: Hong Kong CNN — Senior, Global, ’ Investment, Hong Kong Monetary Authority, People’s Bank of China, “ Global, Citi, Monetary Fund, Global Financial, Investment, Getty, China Securities Regulatory Commission, Stock Connect Locations: China, Hong Kong, AFP

☆ The Chinese government can play a more prominent role in resolving housing market issues, IMF says
▼ + stars: | 2023-11-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Chinese government can play a more prominent role in resolving housing market issues, IMF saysIMF Deputy Managing Director Gita Gopinath discusses the organization's latest GDP forecast for China and the country's lagging housing market.

Persons: Gita Gopinath Locations: China

Nov 8 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asian markets on Wednesday should be well-placed to bounce back from the previous day's declines, supported by another positive showing on Wall Street that secured the S&P 500's and Nasdaq's longest winning streak in two years. Tuesday's slide in U.S. Treasury yields will also support risk appetite in Asia, although some of that could be tempered by the dollar's resilience. With little on the regional economic data and policy events calendar to give markets a steer, investors will probably take their cue from Wall Street. The mostly cautious tone from U.S. policymakers on Tuesday should also help support sentiment in Asia on Wednesday.

Persons: Jamie McGeever, WeWork, Softbank, Fed's Powell, Williams, Barr, Cook, Josie Kao Organizations: Treasury, Nasdaq, Monetary Fund, IMF, Aussie, Reserve Bank of, Japan FX, Thomson, Reuters Locations: U.S, Asia, China, Beijing, Reserve Bank of Australia, Jefferson, Japan

☆ IMF raises China GDP forecast after Beijing's policy moves
▼ + stars: | 2023-11-07 | by ( Evelyn Cheng | ) www.cnbc.com time to read: 1 min

The new economic measures laid out by the U.K. government "will likely increase inequality", according to a spokesperson from the International Monetary Fund. BEIJING — The International Monetary Fund on Tuesday raised its China growth forecast to 5.4% for 2023. The IMF cited better-than-expected third-quarter growth and Beijing's recent policy announcements. However, the IMF still expects growth to slow next year to 4.6% "amid continuing weakness in the property market and subdued external demand." In October, the IMF had lowered its growth forecast for China to 5% this year and 4.2% next year.

Persons: Gita Gopinath Organizations: International Monetary Fund, Monetary Fund, IMF Locations: BEIJING, China

Reuters GraphicsMuch of China's growing rescue lending is denominated in renminbi, the report found, with loans in the Chinese currency overtaking U.S. dollars in 2020. Overdue payments to Chinese lenders have also risen. The arrangement is controversial because it gives China debt seniority, meaning other lenders, including multilateral development banks, could get paid second during any coordinated debt relief. Half of its non-emergency lending in 2021 was syndicated loans, 80% of that alongside Western banks and international financial institutions. Loan commitments to African countries fell from 31% of the total in 2018 to 12% in 2021, while lending to European countries almost quadrupled to 23%.

Persons: Tingshu Wang, AidData, Xi Jinping, —, Mary, Brad Parks, Rachel Savage, Clare Baldwin, Tomasz Janowski Organizations: REUTERS, Rights, Beijing, Initiative, People's Bank of China, State Administration of Foreign Exchange, Mary university, Reuters, Thomson Locations: Beijing, China, Rights JOHANNESBURG, HONG KONG, U.S, Sri Lanka, Zambia, renminbi, Africa

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