By Reuters Staff
3 Min Read
FRANKFURT (Reuters) - The surge in euro zone inflation is driven by transient factors but underlying trends remain weak, so the European Central Bank needs to maintain copious support for the economy, ECB chief economist Philip Lane said on Thursday.
FILE PHOTO: European Central Bank Chief Economist Philip Lane speaks during a Reuters Newsmaker event in New York, U.S., September 27, 2019. REUTERS/Gary He
Inflation has risen steadily this year and is likely to exceed the ECB’s nearly 2% target in the coming months, driven by rising energy costs, a tax hike, a potential surge in household consumption and technical factors related to the pandemic shock.
5 Min Read
BENGALURU/JOHANNESBURG (Reuters) - Battered emerging market currencies will only pare some of their recent steep losses over the coming year, according to analysts polled by Reuters who said a sell-off was likely in the next three months with rising U.S. yields posing a big risk.
FILE PHOTO: Brazilian Real and U.S. dollar notes are pictured at a currency exchange office in Rio de Janeiro, Brazil, in this September 10, 2015 photo illustration. REUTERS/Ricardo Moraes
Having strengthened over 3% in 2020, an index of emerging market currencies erased nearly half of those gains in the last three months as reflation bets spurred by massive U.S. fiscal stimulus drove the dollar index to a four-month high.
3 Min Read
LONDON (Reuters) -Liberty Steel owner Sanjeev Gupta cautioned creditors on Thursday against pulling the plug, saying he had garnered huge interest from financiers willing to refinance billions of dollars in debt owed to failed lender Greensill Capital.
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Gupta’s GFG Alliance conglomerate has 30,000 employees across the world but its Liberty Steel has been rocked by the collapse of Greensill, its main financial backer which had extended “many billions” of loans.
Gupta, who established Liberty Steel in 1992 while studying at Cambridge University, said it was natural that lenders wanted to protect their position, adding there were positive discussions with Grant Thornton, administrator for Greensill.
By Reuters Staff
2 Min Read
A picture illustration shows a South African two Rand coin April 4, 2017. REUTERS/Thomas White/File Photo
JOHANNESBURG (Reuters) - South Africa’s rand weakened early on Thursday as growing bets on faster growth in the United States continued to strain demand for emerging market assets.
At 0630 GMT the rand was 0.37% weaker at 14.8200 per dollar, giving up some of the gains of the previous session that saw it soar to a best of 14.7225 as yield-seeking investors were cheered by a bigger-than-expected trade surplus.
Rising U.S. Treasury yields and a rebound in the dollar spurred by President Joe Biden’s fiscal stimulus plan and vaccination rollout has put risk demand under pressure, although the rand continued to find takers.
3 Min Read There will be no GVD/EUR report on Friday April 2 and Monday April 5 due to UK public holidays (Adds details, updates prices)
AMSTERDAM, April 1 (Reuters) - Euro zone bond yields dipped on Thursday, but showed little clear direction as they balanced extended lockdowns with central bank support and data pointing to signs of economic recovery.
France announced late on Wednesday it would widen lockdown measures to the entire country starting Saturday, in the latest sign of the euro zone’s struggles to keep the coronavirus pandemic in check.
That topped dovish messaging in European Central Bank President Christine Lagarde’s Wednesday interview with Bloomberg News, where she said investors could test the bank’s willingness to rein in rising borrowing costs “as much as they want”.