Active sales from the Bank of England's more than 800 billion pounds of government bond holdings are unlikely to have a material economic impact, Bank of England policymaker Silvana Tenreyro said on Tuesday. "I wouldn't expect the effect of the unwind, of QT, to have a material impact on the economy.
Germany saw its first trade deficit in three decades in May while its exports to Russia took an unexpected upward spike, despite sanctions against the government of Vladimir Putin. What Happened: The German Federal Statistical Office reported the exports to Russia were up 29.4% from April to May. This reverses the trend that occurred when Germany sanctioned Russia for its invasion of Ukraine.
A stampede for dollars as global recession risks mount has left other currencies battered and bruised, with the euro getting trampled on more than most as surging European gas prices worsen economic growth fears. Analysts predict the single currency, which on Tuesday hit its weakest since 2002, will soon fall to parity.
Tunisia's phosphate output exceeded 2 million tonnes in first half of 2022, the first time it reached that level in a decade, rising from 1.3 million tonnes in the same period of 2021, state-run Gafsa Phosphate said on Tuesday. The North Africa country wants to regain its position as a leading exporter to take advantage of a sharp increase in fertiliser prices due to the war in Ukraine.
* Euro back at 2002 levels after gas price surge, weak data. * Wall St equities dip, U.S. Treasury yields tumbled. * Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Sin?ad Carew.
Bank of England's Financial Policy Committee has announced the need for improved regulation of the cryptocurrency sector, following the recent market crash. What Happened: In an endeavor to prevent the large-scale risk in the crypto markets, the Bank of England's Financial Policy Committee stated the urgent need for "enhanced regulation".
Industrial output in Brazil rose 0.3% in May from April, government statistics agency IBGE said on Tuesday, the fourth consecutive monthly increase but below market expectations of a 0.7% rise. According to IBGE, the four-month uptick might be related to government stimulus measures such as releasing money from severance funds and bringing forward bonus payments for retired people.
* BANK OF CANADA TO AUCTION C$12 BILLION OF T-BILLS ON JULY 19, PRELIMINARY CALL FOR TENDERS SHOWS. * BANK OF CANADA TO SELL C$6.9 BILLION 98-DAY T-BILLS, C$2.55 BILLION 182-DAY T-BILLS, C$2.55 BILLION 364-DAY T-BILLS Source text for Eikon: https://www.bankofcanada.ca/markets/government-securities-auctions/calls-for-tenders-and-results/regular-treasury-bills/
DUBAI, UAE, July 5, 2022 /PRNewswire/ --Global trade, which hit a record high of USD 28.5 trillion in 2021[1], is expected to grow steadily in 2022 and the coming years as a new era of multilateralism ? underpinned by regionalisation, trade in services, innovation and sustainable trade ? counters the impact of the slowing global economy, according to DMCC's latest Future of Trade?2022 report ti...
Ireland should set aside some of the budget surplus it expects to post this year to fund future pensions or to start refilling its currently empty contingency reserve fund, Deputy Prime Minister Leo Varadkar said on Tuesday.
Industrial output in Brazil rose 0.3% in May from April, government statistics agency IBGE said on Tuesday, the fourth consecutive monthly increase but below market expectations of a 0.7% rise. According to IBGE, the four-month uptick might be related to government stimulus measures such as releasing money from severance funds and bringing forward bonus payments for retired people.
Industrial output in Brazil rose 0.3% in May from April, government statistics agency IBGE said on Tuesday, below market expectations of a 0.7% increase. Production rose 0.5% from a year earlier, IBGE added.
Egypt's economy grew by 6.2% in fiscal year 2021/2022, which ended June 30, CNBC Arabia TV channel reported on Tuesday, citing Planning Minister Hala al-Saeed.
1ct. Diamond market sentiment received a boost from the Las Vegas shows, which demonstrated robust US demand. The RapNet Diamond Index for 1-carat diamonds slid 1.8% in June but increased 7.4% between the beginning of the year and July 1. Trading in Las Vegas reflected jewelers? strong liquidity after a profitable 2021.
Zimbabwe's central bank said it would start selling gold coins this month as a store of value to tame runaway inflation, which has considerably weakened the local currency.
The Bank of England warned on Tuesday that the economic prospects for Britain and the world had darkened since the start of the year and told banks to ramp up capital buffers to ensure they could weather the storm.
The Bank of England warned on Tuesday that the economic prospects for Britain and the world had darkened since the start of the year and told banks to ramp up capital buffers to ensure they could weather the storm.
By some early estimates, the U.S. economy, as measured by gross domestic product, may have shrunk in the three months from April through June. By an often-cited rule of thumb, that means the world's largest economy is in recession. But deciding when a recession has begun or predicting when one might occur is not straightforward.
By Howard Schneider and Ann Saphir. By some early estimates, the U.S. economy, as measured by gross domestic product, may have shrunk in the three months from April through June. By an often-cited rule of thumb, that means the world's largest economy is in recession. But deciding when a recession has begun or predicting when one might occur is not straightforward.
More G10 central banks raised interest rates in June than in any month for at least two decades, Reuters calculations showed, and with inflation at multi-decade highs, the pace of policy-tightening is unlikely to let up in the second half of 2022.
The Bank of England said on Tuesday it will conduct an in-depth analysis of "opaque" commodity markets after Russia's invasion of Ukraine left the central bank without a full picture of risks and vulnerabilities.
Gold fell on Tuesday pressured by rate
hike expectations and a stronger dollar, but growing recession
fears kept safe-haven bullion pinned near the key support level
of $1,800 an ounce.
Sterling fell on Tuesday against a strengthening U.S. dollar but jumped against the euro in July thinned trade with markets watching for any sign from the Bank of England on its monetary policy path.
The Bank of Japan may adjust its ultra-loose monetary policy before dovish Governor Haruhiko Kuroda's term ends next April, if the economy strengthens enough to spur higher wages, former central bank executive Eiji Maeda told Reuters on Tuesday.
The Bank of Japan may adjust its ultra-loose monetary policy before dovish Governor Haruhiko Kuroda's term ends next April, if the economy strengthens enough to spur higher wages, former central bank executive Eiji Maeda told Reuters on Tuesday.
Business growth across the euro zone slowed further last month, according to a survey in which forward looking indicators suggested the region could slip into decline this quarter as the cost of living crisis keeps consumers wary.
A look at the day ahead in markets from Dhara Ranasinghe. Yes, recession risk remains high on markets' radar but no, there are yet few signs that central banks will be swayed in their determination to aggressively raise interest rates.
Qatar's economy grew 2.5% in the first quarter from a year earlier, although the growth fell slightly from the previous quarter, official estimates showed on Tuesday. Qatar's real gross domestic product, which is adjusted for inflation, shrank 0.3% in the first quarter from the fourth quarter to 166.26 billion riyals, the Planning and Statistics Authority said.
Gold prices eased in a narrow range on
Tuesday, as an elevated dollar and impending interest rate hikes
overpowered support from underlying concerns over the global
economic outlook.
Spot gold ...
- Wall Street's major stock indexes followed European stocks lower on Monday, and the euro sank to its weakest level against the dollar since late 2002, as investors sought safety after the latest data piled on to fears about a global economic slowdown.
Copper prices languished near 17-month
lows on Tuesday on heightened worries that aggressive rate hikes
by central banks to tackle soaring inflation would push
economies into a recession and dent ...
China's services activity snapped three months of decline in June and grew at the fastest rate in almost a year as easing COVID curbs revived demand, although firms remained cautious about hiring, a private-sector survey showed on Tuesday. The Caixin services purchasing managers' index rose to 54.5 in June, indicating the fastest growth since July last year and the first expansion since February.
Japan's services sector activity expanded at the fastest pace in over eight years in June as the easing of coronavirus curbs boosted sentiment among businesses such as those in tourism.
Japan's services sector activity expanded at the fastest pace in over eight years in June as the easing of coronavirus curbs boosted sentiment among businesses such as those in tourism.
The following are the top stories in the Financial Times. Headlines. - UK ministers rebuff request for help in reopening fertiliser plant https://on.ft.com/3P6gFiy. - Intensive industrial energy users to warn UK ministers over gas rationing https://on.ft.com/3ahaadQ. - Bundesbank boss warns against 'fatal' assumptions in ECB crisis tool https://on.ft.com/3RmBBUr. Overview.
South Korea's consumer prices rose more than expected in June to hit the fastest pace in nearly 24 years, government data showed on Tuesday. The consumer price index rose 6.0% in June from a year before, speeding up from a 5.4% rise in the previous month and exceeding the 5.9% tipped in a Reuters poll.
Ireland's reliance on just 10 multinational firms to pay over half of the country's soaring corporate tax receipts represents an "incredible level of vulnerability" for the economy, the finance ministry's chief economist warned on Monday.
The Canadian dollar strengthened
against its U.S. counterpart on Monday, as oil prices rose and a
Bank of Canada survey showed a surge in inflation expectations
that bolstered bets for a supersized ...
* Nagel warns against trying to set spreads. * Sets conditions for his approval of any aid. * Bundesbank chief objected to decision on June 15. * Bundesbank is ECB's largest shareholder. By Balazs Koranyi and Francesco Canepa.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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