DIRS.INFO The most relevant business & tech news

☆ Gold falls for the week on stronger dollar
▼ + stars: | 2023-05-12 | by ( ) www.cnbc.com time to read: +2 min

Gold prices fell to a one-week low on Friday, and was lower for the week, weighed down by a stronger dollar and an uptick in U.S. bond yields. Spot gold was last 0.24% lower at $2,010.84 per ounce, after falling as much as 0.7% earlier in the session. U.S. gold futures fell 0.2% to $2,016.40. Spot silver fell 1.02% to $23.9257 per ounce, down about 7% for its worst week in seven months. Fawad Razaqzada, market analyst at City Index, attributed the drop to the dollar rebound and concerns over China's economic recovery.

☆ G7 to vow diversifying of supply chains, filling bank regulatory gaps -draft
▼ + stars: | 2023-05-12 | by ( ) www.reuters.com time to read: +4 min

In the draft communique, the G7 central banks said they remained "strongly committed" to achieving price stability and ensuring inflation expectations stayed well-anchored. "Diversification of supply chains can contribute to safeguarding energy security and help us to maintain macroeconomic stability," the draft communique said. But it said G7 countries will work to ensure foreign investment in critical infrastructure "does not undermine the economic sovereignty of host countries." On banking-system woes, the draft communique said the financial system was resilient due to regulatory reforms implemented after the 2008 global financial crisis. "We will address data, supervisory, and regulatory gaps in the banking system," the draft communique said.

Summary Biden warns of U.S. recession unless ceiling raised quicklyChina's slowing inflation adds to global recession fearsG7 finance leaders kick off meeting in Niigata, JapanNIIGATA, Japan, May 11 (Reuters) - A standoff over raising the U.S. debt ceiling overshadowed a meeting of Group of Seven (G7) finance leaders set to begin on Thursday, heightening U.S. recession fears as central banks seek a soft landing for the global economy. The U.S. debt crisis is a headache for Japan, which is this year's G7 chair and the world's biggest holder of U.S. debt. Japan's top financial diplomat, Masato Kanda, said on Tuesday the G7 finance leaders might discuss the U.S. debt ceiling but likely would not explicitly mention it in a joint statement at the end of the meeting on Saturday. Past U.S. debt ceiling fights have typically ended with a hastily arranged agreement in the final hours of negotiations, avoiding an unprecedented default. Back then, the G7 finance leaders said in a statement that they were "committed to addressing the tensions stemming from the current challenges on our fiscal deficits, debt and growth."

☆ 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.

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.

☆ Democratic lawmakers are skeptical about using a $1 trillion coin or the 14th amendment to get around the debt ceiling
▼ + stars: | 2023-05-11 | by ( Ayelet Sheffey | Eliza Relman | ) www.businessinsider.com time to read: +6 min

Minting a $1 trillion platinum coin or using the 14th amendment could solve the crisis while sidestepping Congress. The 14th amendment, on the other hand, contains a clause that could declare the debt ceiling unconstitutional and get rid of it forever. 'That's beyond my paygrade and my mental capacity'Insider asked some Democratic senators what they thought of minting a coin or using the 14th amendment to get around the debt ceiling crisis. Sen. Ron Wyden, top lawmaker on the Senate Finance Committee, said that when it comes to the 14th amendment, "I'm not there yet. Yellen also said at a new conference in Japan on Wednesday that "it's legally questionable whether or not that's a viable strategy," referring to the 14th amendment.

☆ 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

☆ 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.

The U.S. debt crisis is a headache for Japan, which is this year's G7 chair and the world's biggest holder of U.S. debt. Five more countries were invited to the outreach including Brazil, India and Indonesia - but not China - although emerging nations' debt problems will feature high on the agenda. On the other hand, Tokyo is courting China to join a creditor nations' meeting it initiated to resolve Sri Lanka's debt. "The agenda of talks show how G7 is becoming increasingly politicized in nature, with an emphasis on countering China." The International Monetary Fund last month trimmed its 2023 global growth outlook and warned a severe flare-up of financial system turmoil could slash output to near recessionary levels.

Spreads on U.S. one-year credit default swaps (CDS) - market-based gauges of the risk of a default - widened to 172 basis points, an all-time high, according to S&P Global Market Intelligence data, up from a close of 163 on Tuesday. The cost of insuring U.S. debt against default for five years stood at 73 basis points, up from 72 basis points on Tuesday, touching the highest level since 2009. Due to the mechanics of a potential CDS payout, the probability of a default implied by the CDS could be lower than what current levels suggest, analysts said. As of last week, the spread on one-year CDS implied a 3.9% probability that the U.S. would default, according to MSCI Research analysts. "We found a lower market-implied default probability than in 2011 ... despite much wider CDS spreads today," they said.

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.

☆ Biden leaves the door open to solving the debt ceiling crisis without Congress — and it could get rid of the debate forever
▼ + stars: | 2023-05-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Biden left the door open to using the 14th amendment to solve the debt ceiling crisis on Tuesday. A clause in the amendment would declare the debt ceiling unconstitutional and get rid of the issue forever. Going into the meeting, both sides were firm in their debt ceiling positions, and they all emerged unchanged. Many legal experts have argued that this clause makes a default — and thus the debt ceiling law leading to that default — unconstitutional. Yellen, for example, dismissed using the 14th amendment on ABC News on Sunday, saying that "I don't want to consider emergency options."

☆ A US debt default will have 'unquantifiable' adverse consequences and unthinkable long-term implications, Wall Street experts warn
▼ + stars: | 2023-05-10 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

A group of 17 top financial experts warned of "unquantifiable" consequences to come if the US defaults on its debt. In a letter addressed to Treasury Secretary Janet Yellen, they made the case for possibly repealing the debt limit altogether. The group warned that the ongoing political deadlock is particularly harmful in the midst of the banking turmoil. The Wall Street executives warned the spat is particularly harmful amid the ongoing turmoil in the banking sector. "With financial markets on edge, continuing to debate raising the debt limit is reckless and irresponsible."

☆ Biden, McCarthy start debt ceiling talks as clock ticks to default
▼ + stars: | 2023-05-09 | by ( Steve Holland | ) www.reuters.com time to read: +4 min

Stalemate in Washington over raising the U.S. debt limit raises the risk of fresh turmoil for markets. Past debt ceiling fights have typically ended with a hastily arranged agreement in the final hours of negotiations, thus avoiding a default. McCarthy, whose party holds the House by only a slim majority, wants to tie a vote on the debt ceiling to broad spending cuts that the White House considers draconian. Biden would agree to a separate discussion on the budget but not tied to the debt ceiling, the White House said. Few countries in the world have debt ceiling laws and Washington's periodic lifting of the borrowing limit merely allows it to pay for spending Congress has already authorized.

☆ US debt limit default could hit in early June to early August -think tank
▼ + stars: | 2023-05-09 | by ( David Lawder | ) www.reuters.com time to read: +3 min

WASHINGTON, May 9 (Reuters) - The U.S. government will begin defaulting on its payment obligations between early June and early August without an increase in the federal debt limit, the Bipartisan Policy Center said on Tuesday, flagging pressure from a drop in tax revenue. The Bipartisan Policy Center (BPC), which closely monitors debt limit disputes in Congress, had estimated in February the X-date could come between summer and early fall, but now sees a default hitting much earlier if Congress fails to raise the $31.4 trillion U.S. borrowing cap. "The coming weeks are critical for assessing the strength of government cash flows," Shai Akabas, BPC director of economic policy. The think tank's latest estimate roughly agrees with the Congressional Budget Office's revised assessment that there is now a "significantly greater risk" of an early June default. Later on Tuesday, President Joe Biden is scheduled to meet with U.S. House of Representatives speaker Kevin McCarthy and other congressional leaders to discuss options to resolve the debt limit standoff between Democrats and Republicans.

☆ Asian stocks edge lower amid gloomy China data as US CPI looms
▼ + stars: | 2023-05-09 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

TOKYO, May 9 (Reuters) - Asian stocks eased back from more than two-week highs on Tuesday as traders squared positions heading into a key U.S. inflation report, while gloomy Chinese trade data also kept risk sentiment in check. Mainland Chinese blue chips (.CSI300) turned lower after early gains, with the benchmark CSI 300 dropping 0.8%. "So when you have some trend data which is not as good as people expect, it raises doubts," he said. "The surprise lies on the downside" for the inflation data, particularly the risk of a drop below 5%, said Tony Sycamore, a market analyst at IG markets. Brent crude was down 30 cents at $76.71 and U.S. West Texas Intermediate (WTI) crude fell 26 cents to $72.90.

☆ Asian stocks edge lower, dollar firm as US inflation data looms
▼ + stars: | 2023-05-09 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), though, slipped 0.3%, erasing part of Monday's 0.9% rally. Hong Kong's Hang Seng (.HSI) dropped 0.4%, while Australia's benchmark (.AXJO) lost 0.2% and South Korea's Kospi declined 0.4%. Investors were mostly unmoved by Chinese data showing exports surged last month while imports eased. "The surprise lies on the downside" for the inflation data, particularly the risk of a drop below 5%, said Tony Sycamore, a market analyst at IG markets. The dollar index , which measures the currency against six major peers, was little changed after earlier rising overnight from near the bottom of its trading range since the middle of last month.

☆ Yellen says pressures remain on some U.S. regional bank stocks but system sound
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +1 min

[1/2] U.S. Treasury Secretary Janet Yellen discusses "U.S.-China Economic Relationship" during a forum hosted by the Johns Hopkins University at the Nitze Building in Washington, U.S., April 20, 2023. REUTERS/Sarah SilbigerWASHINGTON, May 8 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Monday that some regional bank stock prices remained under pressure, but deposits had stabilized and regulators stood ready to use the same tools used in recent bank rescues if more contagion fears arose. Yellen told CNBC in a live interview that some of the selling of bank shares was due to earnings strain, but added that the "bar is pretty high" for imposing any controls on short selling of bank stocks. But short selling more broadly, the bar is pretty high to put controls on," Yellen said. Reporting by David Lawder and Andrea Shalal; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: How to characterize the American economy — from broken to just bizarre
▼ + stars: | 2023-05-09 | by ( Christine Romans | ) edition.cnn.com time to read: +4 min

New York CNN —The US economy is going from broken to bizarre. Covid crashed the American economy three years ago with no playbook for the wild recovery that would follow. And yet, the US economy today is growing, the job market is strong, and the consumer is still spending. The economy has added an astonishing 1.2 million jobs this year and the jobless rate matches the lowest since 1969. Goldman Sachs pegs recession odds at 35% and Fed Chair Jerome Powell last week said the economy could still skirt a recession.

☆ Biden finally met with top lawmakers to discuss a debt ceiling solution — but McCarthy says there wasn't 'any new movement' as a catastrophic default inches closer
▼ + stars: | 2023-05-09 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

Biden met with congressional leaders on Tuesday to discuss raising the debt ceiling. The US could default on its debt as soon as June 1 if Congress doesn't act. "I didn't see any new movement," McCarthy told reporters following the meeting. In the hours leading up to the meetings, McCarthy told Punchbowl News that "we should just get in the room and solve this thing. If Congress fails to raise the debt ceiling, Americans could experience devastating consequences.

☆ Confused about the debt ceiling? Here's what you need to know
▼ + stars: | 2023-05-09 | by ( Emma Kinery | ) www.cnbc.com time to read: +6 min

What is the debt ceiling? Unlike a credit card, though, the expenses were already approved by Congress, so the debt ceiling does not pertain to new spending. The debt ceiling was last raised in December 2021 by $2.5 trillion, capping the limit at $31.381 trillion. If Congress does not agree to lift the debt ceiling, the government will not have money to pay its bills and will default on its debt. The White House has remained steadfast that it is Congress's responsibility to raise the debt ceiling without conditions, as was done three times under the Trump administration.

☆ ‘There Are No Good Options’: The U.S. Is Running Out of Money
▼ + stars: | 2023-05-09 | by ( Alan Rappeport | ) www.nytimes.com time to read: +1 min

“The coming weeks are critical for assessing the strength of government cash flows,” said Shai Akabas, the director of economic policy at the Bipartisan Policy Center. The sluggish pace is due in part to a decision by the Internal Revenue Service to give taxpayers in states that were affected by severe weather more time to file their 2022 taxes. Treasury Secretary Janet L. Yellen said on Monday that if the debt limit was not raised, then Mr. Biden would have to decide how to proceed. “I would say that if Congress doesn’t raise the debt ceiling, the president will have to make some decisions about what to do with the resources that we do have,” Ms. Yellen said on CNBC. “And there are a variety of different options, but there are no good options.”

Spot gold was little changed at $2,023.41 per ounce, as of 0232 GMT. If the inflation report comes hot and fans worries of another Fed rate hike in June, gold prices could eventually drop to $1,950-$1,920 level, said Ajay Kedia, director at Kedia Commodities in Mumbai. Bullion is considered an inflation hedge, but higher rates dent the non-yielding asset's appeal. Besides economic data, market participants are also monitoring developments surrounding the U.S. banking sector and debt ceiling. "If there is news of further stress in the banking sector, we will see gold move towards the $2,100 level," Kedia added.

☆ Morning Bid: US uncertainty feeds caution in Asia
▼ + stars: | 2023-05-09 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Asia markets correspondent Kevin Buckland. European investors hoping to find some clues on market direction from Asia may be disappointed today. Overall, the market mood was cautious ahead of the week's trading highlight, Wednesday's U.S. CPI report, which will put to the test the market's view that the Fed is done hiking. Reuters GraphicsAnd there are several other reasons that investor attention is squarely on the U.S., with the debt ceiling tussle deadlocked and banking sector troubles simmering. The Fed's quarterly Senior Loan Officer Opinion Survey ('SLOOS') also buoyed the mood, showing tighter lending conditions but no impending credit crunch.

Search resuls for: "Ellen S"

25 mentions found