Latest news with #fiscalspending
Yahoo
30-06-2025
- Business
- Yahoo
Oaktree: 'Proceed Cautiously' With Private Credit
With increased fiscal spending and robust credit markets, Europe is looking like an attractive target geography for the private credit markets says Armen Panossian, Co-CEO and Head of Performing Credit at Oaktree Capital Management. Nevertheless, given all the interest in private credit at the moment, it is important that investment managers approach private credit deals with caution, says Panossian. He spoke to Francine Lacqua on 'Bloomberg: The Pulse'. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
30-06-2025
- Business
- Bloomberg
Oaktree: 'Proceed Cautiously' With Private Credit
With increased fiscal spending and robust credit markets, Europe is looking like an attractive target geography for the private credit markets says Armen Panossian, Co-CEO and Head of Performing Credit at Oaktree Capital Management. Nevertheless, given all the interest in private credit at the moment, it is important that investment managers approach private credit deals with caution, says Panossian. He spoke to Francine Lacqua on 'Bloomberg: The Pulse'. (Source: Bloomberg)
Zawya
25-06-2025
- Business
- Zawya
Euro area yields mixed, Iran-Israel ceasefire and fiscal outlook in focus
Euro area government bond yields were mixed on Wednesday as investors weighed expectations that the Iran-Israel ceasefire would hold alongside concerns about increased fiscal spending across the euro area. Germany's cabinet approved a draft budget with record investments on Tuesday. Meanwhile, NATO leaders were set to sign up a big increase in defence spending, with U.S. President Donald Trump striking a reassuring tone on his commitment to protecting fellow members of the alliance. German 10-year government bond yields, which serve as the benchmark for the wider euro zone, rose 0.5 basis points (bps) to 2.54%. Yields on 30-year German bonds were up one bp at 3.05%. They climbed 5 bps on Tuesday, after hitting 3.081%, their highest level in almost a month. Analysts expect rising bond supply across the euro area from more fiscal spending to drive long-term yields higher. Closely watched oil prices held near multi-week lows on the prospect that crude flows would not be disrupted, after a ceasefire between Iran and Israel. "Financial markets have priced in an Iran-Israel ceasefire holding," said Paul Donovan, chief economist at UBS Global Wealth Management. However, intelligence reports suggesting the U.S. failed to destroy Iran's nuclear program will probably keep tensions high in the region, he added. Trump said that the intelligence following the strikes on Iranian nuclear sites was inconclusive, but also suggested the damage could have been severe. Analysts argued that a spike in energy prices could lead markets to scale back their bets on central bank rate cuts. Money markets priced in a European Central Bank deposit facility rate at 1.75% in December, a level seen before the Israeli attack against Iran on June 13, after a rise up to 1.80% on Monday. A key market gauge of euro area long-term inflation expectations was last 2.12% from 2.08% on June 12. Benchmark 10-year Treasury yields were flat at 4.29% in London trade after dropping on Tuesday. Deutsche Bank flagged that since Thursday the market has priced roughly 10 bps more Fed rate cuts by year-end on the heels of dovish comments from Governors Christopher Waller and Michelle Bowman and Fed Chair Jerome Powell's testimony. A decline in risk appetite recently widened the yield spreads between government bonds of highly indebted countries and safe-haven German Bunds, before risk sentiment improved and spreads narrowed again on Tuesday. The Italian yield gap versus Bunds — a market gauge of the risk premium investors demand to hold Italian debt — was at 95 bps. It widened up to 104 bps last week, while being below 90 bps on June 12. Italy's 10-year yields rose 0.5 bps to 3.49%. The French gap versus Bunds was at 69 bps after reaching 75 bps last week. It was at 65 bps in early June. (Reporting by Stefano Rebaudo; Editing by Rachna Uppal, Bernadette Baum, Philippa Fletcher)
Free Malaysia Today
05-06-2025
- Business
- Free Malaysia Today
South Korea's new President Lee begins moves to tackle economic ‘crisis'
South Korean President Lee Jae-myung has vowed to immediately unleash fiscal spending of at least US$22 billion to boost economic growth. (EPA Images pic) SEOUL : South Korea's new President Lee Jae-myung held his first cabinet meeting today focused on devising an emergency package to address stagnating economic growth and aid households, moving swiftly to start tackling a top campaign pledge. Lee took office yesterday, just hours after riding a wave of anger over a brief martial law imposed by Yoon Suk Yeol to win the snap election. The attempt at military rule led to Yoon's ouster and sent shockwaves through Asia's fourth-largest economy. In brief remarks open to the media, Lee told the cabinet, carried over from the caretaker government put in place following Yoon's impeachment in December, that there was no time to waste in getting to work as the people were facing hardship. Lee has so far only nominated a close political ally and legislative veteran as prime minister and is racing to form a cabinet and staff his office to maintain continuity in administration. The new leader expressed bewilderment yesterday after walking into the presidential office to find it stripped of computers, printers and even pens and was quiet like 'a graveyard' with government officials who had been assigned there sent back to their posts. 'Most of the officials have been ordered back,' Lee's spokesman said today. Lee has made economic recovery one of his top priorities and vowed to immediately unleash fiscal spending of at least ₩30 trillion (US$22 billion) to boost growth, which was projected by the central bank in May to be almost half of its earlier estimate this year at 0.8%, down from 1.5% in February. Kim Min-seok, whose appointment as prime minister requires parliamentary approval, said yesterday that the country was facing even more economic turmoil than during the Asian financial crisis of 1997, complicated by unfavourable external factors. 'Today, the economy is heading downward and stagnating, which is why I believe it's much more difficult,' he told reporters. The previous government had made little progress in trying to assuage crushing US tariffs that would hit some of the country's major export-reliant industries, including autos, electronics and steel. 'Lee faces what could be the most daunting set of challenges for a South Korean leader in decades,' analysts said, ranging from healing a country deeply scarred by the martial law attempt to tackling unpredictable protectionist moves by the US. 'Today, Lee withdrew the nomination of two judges to the constitutional court, made by acting president Han Duck-soo before the election,' his office said. Lee previously said Han had no power to nominate judges as an unelected acting leader. The ruling Democratic Party-controlled parliament also passed today special counsel acts to investigate former president Yoon on insurrection charges and his wife Kim Keon Hee over corruption allegations. The party had previously passed the special counsel acts on multiple occasions, but they were repeatedly vetoed by Yoon and then the acting president. Yoon is currently facing a separate trial on insurrection charges.
CNA
05-06-2025
- Business
- CNA
South Korea's new President Lee begins moves to tackle economic 'crisis'
SEOUL: South Korea's new President Lee Jae-myung held his first cabinet meeting on Thursday (Jun 5) focused on devising an emergency package to address stagnating economic growth and aid households, moving swiftly to start tackling a top campaign pledge. Lee took office on Wednesday just hours after riding a wave of anger over a brief martial law imposed by Yoon Suk Yeol to win the snap election. The attempt at military rule led to Yoon's ouster and sent shockwaves through Asia's fourth-largest economy. In brief remarks open to the media, Lee told the carry-over cabinet left by the caretaker government that was in place following Yoon's impeachment in December that there was no time to waste in getting to work as the people were facing hardship. Lee has so far only nominated a political ally and legislative veteran as prime minister and is racing to form a cabinet and staff his office to maintain continuity in administration. The new leader expressed bewilderment after entering the presidential office on Wednesday, saying it was stripped of computers, printers and even pens and was quiet like "a graveyard" with government officials who had been assigned there sent back to their posts. Lee has made economic recovery one of his top priorities and vowed to immediately unleash fiscal spending of at least 30 trillion won (US$22 billion) to boost growth, which was projected by the central bank in May to be almost half of its earlier estimate this year at 0.8 per cent, down from 1.5 per cent in February. Kim Min-seok, whose appointment as prime minister requires parliamentary approval, said on Wednesday the country was facing even more economic turmoil than during the Asian financial crisis of 1997, complicated by unfavourable external factors. "Today, the economy is heading downward and stagnating, which is why I believe it's much more difficult," he told reporters. The previous government had made little progress in trying to assuage crushing US tariffs that would hit some of the country's major export-reliant industries, including autos, electronics and steel. Lee faces what could be the most daunting set of challenges for a South Korean leader in decades, analysts said, ranging from healing a country deeply scarred by the martial law attempt to tackling unpredictable protectionist moves by the United States.
