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New York Post
29-06-2025
- Business
- New York Post
World economy faces ‘pivotal moment,' central bank body BIS says
Trade tensions and fractious geopolitics risk exposing deep fault lines in the global financial system, the central bank umbrella body, Bank for International Settlements, said in its latest assessment of the state of the world economy. The outgoing head of the BIS, often dubbed the central bankers' central bank, Agustín Carstens, said the US-driven trade war and other policy shifts were fraying the long-established economic order. He said the global economy was at a 'pivotal moment,' entering a 'new era of heightened uncertainty and unpredictability,' which was testing public trust in institutions, including central banks. 5 General Manager of the Bank for International Settlements (BIS) Agustín Carstens speaks at the forum Tokenization and the Financial System during the World Bank/IMF Spring Meetings at the International Monetary Fund (IMF) headquarters in Washington, Wednesday, April 23, 2025. AP The bank's report is published just over a week before President Trump's trade tariff deadline of July 9 and comes after six months of intense geopolitical upheaval. When asked about Trump's criticisms of Federal Reserve Jerome Powell, which have included Trump labeling the Fed chair as 'stupid,' he was not overly critical. 'It is to be expected at certain points in time that there will be friction,' former Mexican central bank governor Carstens told reporters, referring to the relationship between governments and central banks. 'It is almost by design.' The BIS' annual report, published on Sunday, is viewed as an important gauge of central bankers' thinking given the Switzerland-based forum's regular meetings of top policymakers. 5 The Bank for International Settlement's report was released just over a week before President Trump's July 9 trade tariff deadline. AP Rising protectionism and trade fragmentation were 'particular concerning' as they were exacerbating the already decades-long decline in economic and productivity growth, Carstens said. There is also evidence that the world economy is becoming less resilient to shocks, with population aging, climate change, geopolitics and supply chain issues all contributing to a more volatile environment. The post-COVID spike in inflation seems to have had a lasting impact on the public's perception about price moves too, a study in the report showed. 5 Bank for International Settlements chief Agustín Carstens was not overly critical of President Trump's criticisms of Federal Reserve Chair Jerome Powell, above. Getty Images High and rising public debt levels are increasing the financial system's vulnerability to interest rates and reducing governments' ability to spend their way out of crises. 'This trend cannot continue,' Carstens said referring to the rising debt levels and he said that higher military spending could push the debt up further. Hyun Song Shin, the BIS's main economic adviser, also flagged the sharp fall in the dollar. It is down 10% since the start of the year and on track to be its biggest first-half drop since the free-floating exchange rate era began in the early 1970s. 5 Hyun Song Shin, the BIS's main economic adviser, flagged the sharp fall in the dollar, which is down 10% since the start of the year. AFP via Getty Images Shorter-term analysis, though, showed 'hedging' by non-US investors holding Treasuries and other US assets appears to have made an 'important contribution' to the dollar's slide over the last few months. 'We haven't seen anything (yet) that would give us any cause for alarm,' Shin added. The BIS had already published one part of its report last week that gave a stark warning about the rapid rise of so-called stablecoins. 5 The Bank for International Settlements headquarters in Basel, Switzerland. doganmesut – He said there was no evidence that this was the start of a 'great rotation' away from US assets as some economists have suggested, but acknowledged that it was still too early to know given sovereign funds and central banks move slowly. In terms of the BIS' own finances, it said it made a net profit of $1.2 billion, while its total comprehensive income reached a record high of $5.3 billion and currency deposits at the bank also reached a new high. 'It is important that the BIS has the highest creditworthiness out there,' Carstens said.
Business Recorder
05-05-2025
- Business
- Business Recorder
Opportunities explored: Aurangzeb meets high-level USPBC team
ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting Monday with a high-level delegation of the US Pakistan Business Council (USPBC) led by Esperanza Jelalian, Vice President of the US Pakistan Business Council, said a press release issued on Monday. The delegation comprised leading American investors and representatives from prominent US businesses operating in or exploring opportunities in Pakistan. The finance minister welcomed the continued interest and investment by US companies in Pakistan and appreciated the participation of US officials and business representatives in the recently held Pakistan Minerals Forum. He underscored the vast potential for expanding Pakistan-US economic cooperation, particularly in key sectors such as energy, minerals, agriculture, and digital services. Aurangzeb, USPBC team discuss investment During the meeting, Senator Aurangzeb highlighted the government's commitment to creating a conducive and enabling business environment for both domestic and foreign investors. He informed the delegation that the government was carefully reviewing policy suggestions, including those related to the taxation regime, submitted by industry bodies and business forums—including USPBC—as part of the consultative process ahead of the forthcoming federal budget. He reiterated the government's intention to support sustainable and profitable business growth for US and other international investors in Pakistan. The finance minister also recalled his recent visit to the United States to attend the World Bank/IMF Spring Meetings. He briefed the delegation on his extensive engagements during the visit, which included over 70 interactions over a six-day period with a wide range of stakeholders including government counterparts, Development Finance Institutions (DFIs), investment banks, multilateral and bilateral partners, rating agencies, think tanks, and leading international media outlets. Copyright Business Recorder, 2025
Yahoo
04-05-2025
- Politics
- Yahoo
Zelensky arrives in Czech Republic to discuss artillery, F-16 support
President Volodymyr Zelensky and First Lady Olena Zelenska arrived in the Czech Republic on May 4 for an official visit, Zelensky announced on X. Czech President Petr Pavel will host Zelensky at the Prague Castle later in the afternoon, marking the Ukrainian leader's first visit to the country since July 2023. Prague has supplied military aid, championed European Union efforts to secure weapons for Ukraine, and provided refuge for hundreds of thousands of Ukrainians who have fled the war. Zelensky thanked the Czech Republic for its "principled support" and highlighted key areas of cooperation. "The Czech artillery initiative has proven effective, and we will continue this effort," he wrote on X. "Another area of cooperation is the development of our military aviation, expanding pilot training programs, and supporting our F-16 fleet." The Czech artillery initiative, backed by Canada, Norway, the Netherlands, Denmark, and other countries, has significantly bolstered Ukraine's artillery capabilities. Launched in 2024 to counter ammunition shortages caused by delayed U.S. aid, the program focuses on pooling resources to rapidly supply Ukraine's front-line forces. Zelensky said discussions would also focus on diplomatic coordination and "joint pressure on Russia to achieve a lasting ceasefire and an end to the war." Pavel visited Ukraine on March 20–21, his second trip since taking office, where he met with Zelensky and reaffirmed Czech support for Ukraine's defense and reconstruction efforts. Read also: Backroom diplomacy and battlefield reality: Ukraine at the IMF Spring Meetings We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
AU Financial Review
27-04-2025
- Business
- AU Financial Review
Three takeaways for next 1000 days of Trump's tariff war
This Wednesday marks the first 100 days of President Trump's second term in office, three months of pop-up surprises. What does the next 100 days, the next 1000 days, portend? Half the Western world's investors and analysts, including yours truly, descended on Washington last week to find out. The IMF Spring Meetings were on, and what is normally a placid and technical affair became a hot mess of a gathering as we levelled up our understanding of this new world.
Time of India
26-04-2025
- Business
- Time of India
‘If you delay, it hurts everyone': World Bank chief Ajay Banga warns developing nations to act quickly on trade with US
File photo: World Bank President Ajay Banga (Picture credit: PTI) World Bank President Ajay Banga on Friday urged developing countries to strike trade deals with the United States as soon as possible, warning that delays could hurt all parties. During the World Bank and IMF Spring Meetings in Washington, Banga was quoted by news agency AFP saying, 'You need to negotiate trade systems with the US at the earliest possible opportunity. If you delay, it hurts everyone.' His comments come amid growing uncertainty over US trade policy , driven by US President Donald Trump's erratic imposition of tariffs . Since returning to power in January, Trump has introduced a baseline 10 per cent tariff on most countries, along with targeted 25 per cent levies on imports like steel, aluminium, and cars not made in the US. Higher duties against several nations, justified on trade imbalance grounds, are currently paused. The World Bank has been advising developing nations to quickly formalise trade agreements with the US and then shift focus to reducing trade barriers and encouraging regional commerce . Banga also backed US treasury secretary Scott Bessent's recent criticism of China's ongoing status as a World Bank development borrower. 'I don't think he's wrong,' Banga said, adding that China, given its economic size and strength, should eventually stop borrowing from the International Bank for Reconstruction and Development (IBRD). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads View Deals Undo China borrowed around $750 million last year from the IBRD while also contributing significantly to repayments and donations. 'I've brought it down to 750 (million), and I'm trying to figure out a way to deal with China to bring it down further,' Banga said, though any change would require executive board approval. Banga also responded to US critiques of the World Bank's policies as 'expansive,' calling such scrutiny normal for newly elected governments and adding, 'There's nothing wrong with it.' On energy access, Banga highlighted the Bank's goal to help connect 300 million people in sub-Saharan Africa to electricity by 2030. He stressed the importance of affordable and reliable power, noting that while the Bank currently hesitates to fund nuclear and gas projects, these options may be considered when its energy strategy is reviewed in June. Finally, he called for job creation in developing countries through local initiatives, not just outsourcing, warning that such imbalances are already fuelling political shifts in advanced economies. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
