Page 16 - Global Economy

UAE allocates $200 million to boost growth in low-income countries

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, announced the UAE's initiative during the International Monetary and Financial Committee (IMFC) Meeting

Pak at tipping point with 40% of population below poverty line: World Bank

The warning comes ahead of the elections. The Bank's policy note is meant to act as a guide for the new government that will take office after the elections for policy reforms

Could turn more protectionist if trade deficit isn't reduced: EU to China

The European Union's top foreign policy official warned Friday that public sentiment in Europe could turn more protectionist if the region's trade deficit with China is not reduced. Josep Borrell, the EU high representative for foreign affairs, called for improved access for European companies that want to export to or invest in China. He said that political leaders in Europe could face pressure from voters to disengage from the world's second-largest economy. And we don't want to disengage and much less, much less, to decouple from China, Borrell said in a speech at Peking University, one of China's top schools. The EU trade deficit with China topped USD 17 billion in September, bringing the total for the first nine months of the year to USD 170 billion, according to Chinese trade figures released Friday. Borrell, who held talks later Friday with China's Foreign Minister Wang Yi, is the latest EU official to visit China as the two sides lay the groundwork for a leaders summit late

Gold set to mark best week in 7 months as markets price in end of Fed hikes

Spot gold rose nearly 1% to $1,886.40 per ounce by 0932 GMT. U.S. gold futures added 0.9% to $1,899.20

G20 FMCBG releases joint communique adopting roadmap on crypto assets

While welcoming the G20 IEG rpt on strengthening MDBs, the communique said that transformative changes are required in MDBs' vision, operating models and financing capacities

Crude oil falls after Saudi pledge, investors keep wary eye on Israel

Brent futures fell $2.10, or 2.4%, to $85.55 a barrel by 10:41 a.m. EDT (1441 GMT). U.S. West Texas Intermediate (WTI) crude fell $2.55, or 3.0%, to $83.42

US wholesale inflation rises 2.2% in Sept, fastest pace since April

US wholesale prices rose last month at the fastest pace since April, suggesting that inflationary pressures remain despite a year and a half of higher interest rates. The Labour Department reported on Wednesday that its producer price index which measures inflation before it hits consumers climbed 2.2 per cent from a year earlier. That was up from a 2 per cent uptick in August. On a month-to-month basis, producer prices rose 0.5 per cent from August to September, down from 0.7 per cent from July to August. Excluding volatile food and energy prices, so-called core inflation rose 2.7 per cent in September from a year earlier and 0.3 per cent from August. The Federal Reserve and many outside economists pay particular attention to core prices as a good signal of where inflation might be headed. Wholesale prices have been rising more slowly than consumer prices, raising hopes that inflation may continue to ease as producer costs make their way to the consumer. But Wednesday's numbers,

Indian economy needs 8% growth to topple China as global driver: Barclays

The South Asian nation should focus investment in areas like mining, utilities, transport and storage - sectors that have stronger spillover effects on the broader economy, said Barclays economist

IMF's world economy outlook worsens, Middle East war poses new uncertainty

The world economy has lost momentum from the impact of higher interest rates, the invasion of Ukraine and widening geopolitical rifts, and it now faces new uncertainty from the war between Israel and Hamas militants, International Monetary Fund warned Tuesday. The IMF said it expects global economic growth to slow to 2.9 per cent in 2024 from an expected 3 per cent this year. The forecast for next year is down a notch from the 3per cent it predicted back in July. The deceleration comes at a time when the world has yet to fully mend from a devastating but short-lived COVID-19 recession in 2020 and now could see fallout from the Middle East conflict particularly to oil prices. A series of previous shocks, including the pandemic and Russia's war in Ukraine, has slashed worldwide economic output by about USD 3.7 trillion over the past three years compared with pre-COVID trends. The global economy is limping along, not sprinting," IMF chief economist Pierre-Olivier Gourinchas said at a

Govt to scale back on investment as it curbs budget deficit: Goldman Sachs

This move will give the private sector scope to pick up the slack in the coming years

Oil prices surges more than 2% as Middle East turmoil roils markets

Brent crude was up $2.28, or 2.7%, to $86.86 a barrel by 0859 GMT, while U.S. West Texas Intermediate crude was at $85.23 a barrel, up $2.44 or nearly 3%

UN FAO raises its forecast for this year's global cereal production

FAO's new Cereal Supply and Demand Brief pegs global wheat output at 785 million tonnes, coarse grain production at 1511 million tonnes

Pakistan's foreign debt ratio rises amid ongoing economic crisis: Report

The ratio of foreign debt of cash-strapped Pakistan has shot up from 36.9 per cent in FY22 to 38.3 per cent in FY23, according to a media report on Friday. The Ministry of Finance's Annual Debt Review and Public Debt Bulletin FY2023 comes amid unchecked domestic inflation as the cash-strapped Pakistan's economy has been in a free-fall mode for the last several years. Terming it as an alarming development, Geo News said, the FY2023 Bulletin shows that the total public debt peaked at Rs 62.88 trillion till the end of June 2023 against Rs 49.2 trillion, indicating that the total public debt increased by Rs 13.64 trillion during the last fiscal year 2022-23 in the tenure of Pakistan Democratic Movement (PDM) coalition government. After giving details of the total outstanding guarantees to public sector enterprises, those issued to the oil and gas sector and the guarantees issued against commodity operations, the report said, the ratio of domestic debt to total public debt in percentage

Emerging economies face China and rate pressures as IMF, World Bank meet

Restructuring efforts for defaulted countries could reach a breakthrough before year-end as talks continue, while the finances of nations like Pakistan and Egypt will also be under scrutiny

Global bond selloff upends markets as long term borrowing costs surge

Traders are bracing for an extended period of tight monetary policy, and demanding ever higher compensation to hold long-dated government debt

US Treasury 30-year bond yield rises 8 bps to hit highest level since 2007

Shorter-maturity Treasury yields had previously reached the highest levels since at least 2007, and extended their climb Tuesday

Inflation woes nix chances of India yield curve steepening: Traders

The government bond yield curve has remained flat for the past few weeks, with the four- and five-year yields at around 7.25% and the 10-year benchmark bond yield at 7.23%

Here's why a US recession may still be on the cards for its economy

A summer in which inflation trended lower, jobs remained plentiful and consumers kept spending has bolstered confidence that the world's biggest economy will avoid recession

US manufacturing sector eyes recovery, construction spending solid

Among the 11 industries reporting contraction were computer and electronic products, machinery as well as electrical equipment, appliances and components

US govt shutdown would be negative for credit rating, says Moody's

U.S. government services would be disrupted and hundreds of thousands of federal workers furloughed without pay if Congress fails to provide funding for the fiscal year starting Oct. 1