Aurelia Butler

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    in Economy

    Ghana’s bondholders to re-engage government next week on debt rework

    ACCRA/LONDON/NEW YORK (Reuters) – Ghana and its bondholders will restart talks next week to hash out a debt restructuring deal on $13 billion of international bonds, four sources told Reuters, on the heels of a deal finalised with official creditors earlier this week. Ghana, a gold and cocoa producer, defaulted on most of its $30 billion in external debt in 2022, weighed by the COVID-19 pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs.It had kicked off formal talks with two groups of bondholders in mid-March – a group of Western asset managers and hedge funds and another one including regional African banks.But negotiations stalled in April after the proposed deal failed to meet the International Monetary Fund’s debt sustainability analysis (DSA) requirements, and both sides are under pressure to finalise an agreement before December elections. The sources familiar with the situation told Reuters that government advisors had reached out to their counterparts at the bondholder group hours after the government and official creditors concluded their deal on Tuesday.The government advisors shared information on the official creditor deal as well as details from the new debt sustainability assessment from IMF, the sources said, speaking on condition of anonymity. “People are incentivized,” one of the sources said. “Things can happen quickly.”Ghana’s Finance Ministry did not respond to a request for comment.The information shared will form the basis for discussions next week, two of the sources said, adding that financial advisors are currently reviewing the information. Discussions with two groups holding roughly $13 billion in Ghana’s overseas bonds previously failed to reach a deal that met the IMF’s debt-sustainability targets as set out in the first review of the fund’s $3 billion loan programme with the country.However, Ghana’s economic situation has improved since then, and two sources said they expected the deal to be compliant with the fund’s adjusted DSA on the back of the second review which concluded in early April, two of the sources said. More

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    in Economy

    Column-Ultra-loose financial conditions turn up summer heat on Fed: McGeever

    ORLANDO, Florida (Reuters) – The virtuous cycle of loosening U.S. financial conditions and booming asset prices is accelerating rapidly as inflation continues to cool, which could be a problem for the Federal Reserve when it’s time to cut interest rates.Surprisingly weak consumer and producer inflation this week has propelled Wall Street to new highs and pushed bond yields to two-month lows, while stock market volatility is near its lowest since before the pandemic and credit spreads are around the tightest levels since before the 2007-09 Great Financial Crisis. These dynamics are playing out even though the Fed signaled via its new economic projections and Chair Jerome Powell’s press conference on Wednesday that no easing is imminent and that rates will be kept on hold throughout the summer. In some ways, it is a perfect world for policymakers. Inflation is cooling and gradually heading back to target, growth is running above potential, investors are benefiting from record stock prices, real wages are rising, and unemployment is low.What’s not to love?The worry is that by signaling it is comfortable with the current economic equilibrium and prepared to sit tight for a few months, the Fed may also be backing itself into a corner. Loose and even looser financial conditions will fuel risk-taking and speculative market activity, potentially inflating asset bubbles and increasing the damage when “something breaks,” as will likely be the case eventually.That would force the Fed into a reactive and more aggressive series of rate cuts instead of a smoother, more managed decline – a hard landing, rather than the soft landing that many observers think is still possible. “The defining features of the current environment continue to be loose financial conditions and low cross-asset vols supporting investor risk appetites,” Citi’s cross asset strategy team wrote on Tuesday. “Markets are still trading a soft-landing narrative,” they wrote, adding that they are more positive on U.S. assets and have moved to an ‘overweight’ position in U.S. stocks and bonds.And that was before the soft CPI and PPI data. BY THE MINUTESThey’re not alone. Cross-asset strategists at HSBC on Wednesday wrote that the ‘Goldilocks’ and ‘immaculate disinflation’ narratives still warrant buying risk assets on any dip, even if these trades are beginning to look a bit crowded.To be sure, pockets of stress are appearing, such as commercial real estate and private credit. But in broad terms, investors can hardly be blamed for staying bullish – by some measures, financial conditions are looser now than they were before the Fed first raised rates in March 2022. Minutes of the Fed policy meetings show officials regularly discuss the ebb and flow of financial conditions. The minutes of the April 30-May 1 meeting show that “a number of participants” expressed concern that financial conditions at the time were not restrictive enough. Back then, bond yields were the highest since November. Powell said in his May 1 press conference that the rise represented an “appropriate” tightening of financial conditions.But financial conditions have loosened significantly since then. Is the recent fall in yields now inappropriate or, given the latest inflation readings, still appropriate? Unfortunately, we may have to wait three weeks for the June meeting minutes to be published before we get an insight into officials’ thinking, because there was no mention of ‘financial conditions’ at all in Powell’s press conference on Wednesday. This is the first time this has happened since September. Transcripts of Powell’s post-meeting press conferences since the Fed first raised rates in March 2022 show that there was no mention of ‘financial conditions’ in only three of them – Wednesday, and September and May last year.Would the Fed cut rates with stocks markets at record highs? History suggests it would. According to Ryan Detrick at Carson Group, the Fed has done so 20 times since 1980, and a year after each one the S&P was higher. A year is a long time, however. The summer months will be long enough for the Fed if the cycle of loose financial conditions, low volatility and booming asset prices continues to accelerate.(The opinions expressed here are those of the author, a columnist for Reuters.) (By Jamie McGeever; Editing by Andrea Ricci) More

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    in Cryptocurrency

    Dogecoin (DOGE) Praised by Short-Selling Agency Citron Research, Here’s Important Reason

    The agency sends a newsletter to its customers, in which it informs them about companies that it believes to be overvalued or noticed to be engaged in fraud, scams, etc. It also strives to identify frauds on financial markets and seeks to expose terminal business models.The reason here is that they have decided to respect the irrationality of the market. Here they made a mention of Dogecoin as an example of a similar asset, which is worth $20 billion in terms of market capitalization and is sort of representative of “the market’s irrationality”: “We respect the market’s irrationality. After all, Dogecoin remains a $20 billion entity.”According to Reuters, though, founder of Citron Research Andrew Left said that should GME reach $45-$50 per share, he would begin shorting it again.Those two influencers were Anthony Scaramucci and Jan3 chief executive Bitcoin maximalist Samson Mow. The latter believes that, in that case, both BTC and GME would see “Godzilla candles” immediately.This article was originally published on U.Today More

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    in Cryptocurrency

    513 Million Bitcoin (BTC) in 24 Hours, Here’s What’s Coming

    This better-than-the-expected-0.1% value implies that Federal Reserve monetary policies, as concerns keeping inflation steady, have been working overall. The upside might be felt with a recovery in risk-on assets like Bitcoin.At the time of writing, the digital currency has maintained its bearish drawdown, down by 3.76% in the past 24 hours to $67,351. This is a major derailment from the mildly bullish momentum from earlier in the week, when the coin made emphatic moves to surpass the $70,000 price level.Per the current outlook, the digital currency might be reacting to the news negatively, as a stronger PPI means a resilient economy, which gives corporate investors extra incentive to choose traditional assets over the risk asset.With spot Bitcoin ETFs actively trading in the United States, the United Kingdom, Canada and recently Hong Kong and Australia, there are enough avenues to buy the coin and drive the price up in the long term.Despite the drawdown, more than 513 million Bitcoin, or $34,291,565,528, has been traded in 24 hours atop a 17% jump. This is an indication of a bullish twist that might contribute to the BTC revival hurdle.This article was originally published on U.Today More

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    in Economy

    Stellantis to shift some Chinese EV production to Europe

    Standard DigitalWeekend Print + Standard Digitalwasnow $85 per monthBilled Quarterly at $199. Complete digital access plus the FT newspaper delivered Monday-Saturday.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More

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    in Cryptocurrency

    Crypto Just Got Hungrier: DevourGO Now Accepts Payments via Coinbase Commerce

    Devour, the leading web3-powered food ordering platform, announced today that it’s simplifying crypto payments for millions of users with the integration of Coinbase (NASDAQ:COIN) Commerce into its DevourGO checkout. This innovative move allows crypto enthusiasts to seamlessly pay for their favorite meals using their existing Coinbase.com or Wallet accounts, all within the DevourGO app.Devour is a trailblazing platform that transforms the digital dining experience, uniquely integrating food ordering into the gaming and streaming worlds for Gen Z. It’s more than an app; it’s an innovative ecosystem where games, entertainment, and food converge. With the Devour Platform, we’re tapping into the lifestyles of over 200 million U.S. gamers, offering a seamless blend of entertainment and convenience. Learn more at devour.io.About CoinbaseCrypto creates economic freedom by ensuring that people can participate fairly in the economy, and Coinbase (NASDAQ: COIN) is on a mission to increase economic freedom for more than 1 billion people. We’re updating the century-old financial system by providing a trusted platform that makes it easy for people and institutions to engage with crypto assets, including trading, staking, safekeeping, spending, and fast, free global transfers. We also provide critical infrastructure for onchain activity and support builders who share our vision that onchain is the new online. And together with the crypto community, we advocate for responsible rules to make the benefits of crypto available around the world.For media inquiries or to request an interview with CEO Shelly Rupel, users can contact Leah Smith at [email protected] [email protected] article was originally published on Chainwire More

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    in Cryptocurrency

    Bitcoin price today: down to $67k after rate cut updates

    The world’s biggest cryptocurrency fell 2.1% in the past 24 hours to $67,850.9 by 08:30 ET (12:30 GMT). The token clocked wild swings this week, rising as far as $70,000 before falling sharply. Traders remained largely averse to Bitcoin and broader cryptocurrencies in the face of high-for-longer U.S. interest rates.While the Fed kept rates unchanged on Wednesday, as expected, Chair Jerome Powell said the central bank now saw the possibility of only one rate cut this year, compared to prior expectations of three cuts.Several policymakers also called for no rate cuts this year, stating that more progress needed to be made in bringing down inflation. The Fed also hiked its inflation forecast for the year. The Fed’s comments came after data earlier on Wednesday showed U.S. consumer inflation eased slightly more than expected in May. While Bitcoin saw some gains after the inflation reading, it lost ground after the Fed’s comments.High rates bode poorly for speculative assets such as crypto currencies, given that they limit the amount of liquidity available for investing in the sector. While recent capital flows data showed institutional investors were still pouring in some money into crypto, this was barely reflected in token prices. Focus is now on producer price index inflation data for more cues on U.S. inflation. The reading is due later on Thursday.The prospect of high for longer U.S. interest rates also weighed on broader cryptocurrency prices. World no.2 token Ether slid 3.3% to $3,516.65, giving up even more of its gains made in the prior month.Solana and XRP fell 2.1% and 0.1%, respectively, while Cardano climbed 0.5%, though all three coins were trading down for the week.Among meme tokens, SHIB dipped 2.4% while DOGE rose 2.5%. But sentiment towards the two was largely cooling in tandem with diminishing interest in meme stocks on Wall Street. GameStop Corp (NYSE:GME) lost even more ground on Wednesday and wiped out most of a rally seen in late-May. Business intelligence form and largest corporate holder of Bitcoin, MicroStrategy, said on Thursday it will offer $500 million in convertible senior notes due 2032.The proceeds will be used to purchase additional Bitcoin and for other corporate purposes. The offering is contingent on market conditions, with no guaranteed timing or terms.”MicroStrategy also expects to grant to the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $75 million aggregate principal amount of the notes,” the company wrote in the announcement.MSTR shares were down 1.4% in premarket trading.Starting June 20, 2029, MicroStrategy may redeem all or part of the notes for cash, subject to certain conditions. The private offering will be available to individuals qualified as institutional buyers under Rule 144A of the Securities Act of 1933.Currently, MicroStrategy holds 214,400 BTC, valued at over $14 billion, making it the largest public-listed Bitcoin holder. More

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    in Economy

    Weekly initial jobless claims rise 242,000, more than expected

    Initial jobless claims in the U.S. climbed to 242,000 in the week ended on June 8, an increase from a total of 229,000 in the prior week. Economists had forecast a consensus figure of 225,000.The four-week moving average, which attempts to account for variances in the weekly figure, edged higher to 227,000 from 222,250.The U.S. labor market had shown signs of cooling, potentially offering the U.S. Federal Reserve some leeway to start cutting interest rates from record levels, but the May jobs report at the start of the month changed the narrative.U.S. job growth accelerated far more than expected in May, as nonfarm payrolls increased by 272,000 jobs last month, much more than the 182,000 forecast.The U.S. central bank kept interest rates unchanged at its latest policy meeting, which concluded on Wednesday, but officials reined in projections for how aggressively they would cut rates this year, from three 25 basis point rate cuts to just one. More