Author: starbpo

The first five weeks of 2024 have seen a notable trend among emerging-market traders: corporate bonds denominated in US dollars are delivering higher returns than most other asset classes within the EM universe. According to data from Bloomberg, these bonds are generating annualized gains of 12% in US currency terms, outperforming US corporate notes and narrowing the yield spread to its lowest point since June 2021. The surge in prices can be attributed to a scarcity of EM corporate bonds in secondary trading, with fewer issuances than anticipated. In contrast, sovereign bond sales experienced the most active January in three…

The S&P 500 Index, after a remarkable 20% rally since October, faces challenges as February, known for historical stock market volatility, unfolds. The recent reality check in big-tech earnings, fading speculation on Federal Reserve easing, and elevated valuations reminiscent of the dot-com bubble are causes for concern. February, historically the third-worst month for the S&P 500 in the last 30 years, adds to worries. Some optimistic investors fear that the current enthusiasm, reflected in the highest bulls-to-bears ratio since mid-2021, signals a contrarian downturn. Despite a strong start in February, concerns linger. The “rah-rah” mentality in the market, fueled by…

Former Swiss Finance Minister, Ueli Maurer, has defended his handling of the Credit Suisse collapse, dismissing the idea of nationalization as impractical. In an interview with Swiss newspaper SonntagsZeitung, Maurer argued against the viability of temporarily nationalizing Credit Suisse, stating, “The state would suddenly have to run a globally active bank that is dirty everywhere and involved in legal cases. How would that work?” The central bank was reportedly considering this option. Maurer, who faced criticism for his hands-off approach leading up to the downfall of Credit Suisse, justified his stance by suggesting that the troubled bank could have resolved…

European leaders aiming to curb the rise of populist parties in the upcoming 2024 elections may find little support from the economy, even if the European Central Bank opts to cut interest rates. Despite projections of global and euro-zone growth, subsiding inflation, and potential reductions in borrowing costs, these factors might not contribute significantly to a positive political climate in time for the European Parliament elections in June and the German state elections in September. The German political landscape, in particular, faces challenges, with Chancellor Olaf Scholz’s coalition dealing with budget disputes and increased support for the AfD. Elections in…

Europe’s economic engine, Germany, is set to disclose the full extent of its industrial decline in 2023, marking a new post-pandemic low. A series of upcoming data releases, including monthly figures for exports, factory orders, and production, are anticipated to reveal a downturn in December, signaling a significant setback for the region’s largest economy. The industrial giant, Siemens AG, reporting earnings soon, is expected to shed light on the manufacturing malaise overshadowing Germany, complicating matters for Chancellor Olaf Scholz amid coalition disarray. Despite successfully passing a new budget for 2024, Germany faces the challenge of managing without a deficit in…

Australia took a significant step towards boosting the adoption of electric vehicles (EVs) by unveiling its “preferred model” for new vehicle emission standards. The move aligns with the country’s commitment to global climate policy reforms, with the aim of bringing Australia in line with standards observed in other developed economies. Last year, the center-left government introduced a roadmap for fuel efficiency standards, emphasizing the potential for increased EV availability. Australia, apart from Russia, stands as the only developed country without established or evolving fuel efficiency standards, according to the Labor government. The government’s “preferred model,” released on Sunday, leans towards…

Swedish private equity behemoth EQT is reportedly rekindling its ambitions for the initial public offering (IPO) of Swiss skincare powerhouse Galderma, according to insider sources cited by the Financial Times on Sunday. Galderma is said to be gearing up for its IPO in Switzerland, with a potential launch in the first half of the current year, and market speculations indicate a valuation of approximately $20 billion for the unit. Despite Reuters reaching out for comments, both EQT and Galderma have not yet responded to the requests. The decision to proceed with the IPO follows a setback in the previous year,…

A decline in tanker movement through the Suez Canal is causing a divergence in global oil trading patterns, dividing regions into two main sectors: one encompassing the Atlantic Basin, North Sea, and the Mediterranean, and another covering the Persian Gulf, Indian Ocean, and East Asia. Recent purchasing trends indicate a shift, with European refiners reducing Iraqi Basrah crude imports and increasing acquisitions from the North Sea and Guyana. In Asia, heightened demand for Abu Dhabi’s Murban crude has raised spot prices, while flows from Kazakhstan to Asia have seen a significant decline. Crude shipments from the US to Asia have…

Thousands of accounts at Paytm Payments Bank have been flagged by India’s central bank for improper identification, raising concerns about potential money laundering activities, according to confidential sources. The Reserve Bank of India (RBI) has forwarded the information to the Enforcement Directorate, as well as the ministry of home affairs and the prime minister’s office. Paytm Payments Bank, facing regulatory scrutiny, denies money laundering allegations, stating that its parent company, One 97 Communications Ltd., and the bank have never been probed by the Enforcement Directorate. The RBI has ordered Paytm Payments Bank to wind down most of its operations by…

Nippon Steel Corp.’s recent bid to acquire US Steel has stirred both enthusiasm and political resistance, dominating discussions at a prominent steel conference in Florida. Industry insiders believe the deal could enhance domestic steel pricing competitiveness and job retention, contrary to concerns surrounding a potential acquisition by US rival Cleveland-Cliffs Inc. Wolfe Research analyst Timna Tanners highlighted the satisfaction among steel consumers with Nippon as the buyer, a sentiment echoed at the Tampa Steel Conference. However, despite industry approval, the deal faces political opposition in the lead-up to the US election, with union leaders and politicians expressing reservations. Republican frontrunner…