Aurelia Butler

WASHINGTON (Reuters) – The International Monetary Fund (IMF), the World Bank and Morocco on Monday announced the annual meetings of the two global institutions would proceed in October in Marrakech, despite a recent nearby earthquake that killed more than 2,900 people.The meeting will take place from Oct. 9-15 in Marrakech, just 45 miles (72 km) from the site of the 6.8-magnitude earthquake on Sept. 8, with some changes to adapt content “to the circumstances,” World Bank President Ajay Banga, IMF Managing Director Kristalina Georgieva and Morocco’s Economy Minister Nadia Fettah Alaoui said in a joint statement.Senior IMF and World Bank officials made the decision, first reported by Reuters, at the direct request of the Moroccan authorities who had pressed the global institutions to proceed with the gathering which is expected to bring some 10,000-15,000 to the Moroccan tourist hub.”As we look ahead to the meetings, it is of utmost importance that we conduct them in a way that does not hamper the relief efforts under way and that is respectful to the victims and the Moroccan people,” the three officials said.”At this very difficult time, we believe that the Annual Meetings also provide an opportunity for the international community to stand by Morocco and its people, who have once again shown resilience in the face of tragedy. We also remain committed to ensuring the safety of all participants.”Georgieva told Reuters on Friday that Morocco’s prime minister told her it would be “quite devastating” for Morocco’s hospitality sector if the meetings were moved to a different location. More

Receive free Markets Insight updatesWe’ll send you a myFT Daily Digest email rounding up the latest More

NEW YORK (Reuters) – Foreign holdings of U.S. Treasuries rose in July, data from the Treasury Department showed on Monday, rising for a second straight month despite an uncertain interest rate outlook muddied by a mixed set of economic figures.Total holdings of U.S. Treasuries climbed to $7.655 trillion in July, up from $7.562 trillion in the previous month. Compared from a year earlier, overseas holdings were up 2.2%.China’s stash of Treasuries dropped to $821.8 billion, the lowest since May 2009, when it had $776.4 billion, data showed.Analysts said China has been under pressure to defend its weakening currency, the yuan, and the selling of U.S. debt may have been used for intervention purposes to prop it up. The benchmark 10-year Treasury yield started July at 3.858%, rising 9.9 basis points (bps) to 3.957% by the end of the month. “There is a huge inflow into U.S. Treasury debt despite a lot of volatility in rates in July,” said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities in New York.”A lot of the increase in foreign holdings was from the Caymans, Luxembourg, Bermuda, which are associated with custodians. So it’s difficult to know exactly who the buyers were,” he added.Japan is still the largest non-U.S. holder of Treasuries with $1.112 trillion in July, up from $1.105 trillion in June. “We saw some buying by Japanese investors despite the fact that on a hedged basis U.S. Treasuries are not particularly attractive,” Goldberg said. “That suggests there may be some unhedged buying of Treasuries.”Major U.S. asset classes showed mixed results during the month, data showed.Net foreign inflows into Treasuries slid to $200 million in July from $57.3 billion in June.Net foreign flows into U.S. equities also fell, dropping to $28.9 billion in July from $120.4 billion the previous month.Foreign buying of U.S. corporates and agencies in July notched inflows of $8.4 billion and $8.1 billion, respectively.Data also showed U.S. residents increased their holdings of long-term foreign securities, with net purchases of $36.8 billion in July. More

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist.The calm before the potential storm?Ahead of a raft of central bank meetings this week, most notably the U.S. Federal Reserve’s latest decision, outlook and guidance on Wednesday, investors have started the week cautiously and key markets have been confined to tight trading ranges.The dollar slipped 0.2% on Monday, U.S. Treasury yields moved no more than 3 basis points across the curve and remarkably, the three main indices on Wall Street ended the day no more than 0.07% away from Friday’s close.The main exception appears to be oil, which continues to forge new peaks for the year in a steady march towards $100 a barrel. Brent crude is up 30% in the last three months, and has risen 10 out of the last 12 weeks.In theory, this is not such a bad thing for Asian oil and energy producers like Indonesia, and should be a bigger headache for consumers, businesses and policymakers in countries like Japan and South Korea that import almost all their energy.But on the surface at least, currencies of energy importing and exporting countries are feeling the heat.Yen traders appear to have completely dismissed the potential for a hawkish policy shift from the Bank of Japan later this week and are pushing the yen to new lows for the year, while South Korea’s won has lost around 5% since July.India’s rupee is again hovering around record lows against the dollar, China’s yuan is struggling to rebound much from the 16-year low struck earlier this month, and Indonesia’s rupiah has slid around 5% since May to a six-month low.Of course, other factors are at play here, not least the broader strength of the U.S. dollar, fortified by surprisingly resilient U.S. economic data and a persistently wide yield advantage over its main rivals.Asian currencies have generally performed poorly this year. Smelling blood and being highly attuned to the path of least resistance, currency traders may be sensing the energy price spike is another layer of vulnerability for Asian currencies to prey upon.Could the oil price spike feature in the raft of central bank policy decisions and outlooks this week? In Asia, that would be the central bank meetings in Taiwan, the Philippines and Indonesia on Thursday, and Japan on Friday.Tuesday’s Asian and Pacific economic calendar is pretty light, with the Reserve Bank of Australia’s last policy meeting minutes the main event. Malaysian trade data and balance of payments figures from the Philippines are also on tap.Here are key developments that could provide more direction to markets on Tuesday:- Reserve Bank of Australia meeting minutes- Malaysia trade (August)- The Philippines balance of payments (August) (By Jamie McGeever; Editing by Deepa Babington) More

The British Chambers of Commerce said 46% of firms it surveyed said the increase in rates so far was having a negative impact, while 45% said they were not directly impacted.Retailers and hospitality firms were among those feeling the hit the hardest, the BCC said.Shevaun Haviland, director general of the lobbying group, said business investment was being held back because of the burden of higher debt bills.”The Bank of England has indicated rates are nearing their peak,” she said. “Businesses need clarity and certainty this week, that an end to the cost-of-borrowing pressures are really on the horizon.”The BoE is expected to raise Bank Rate to 5.5% from 5.25% on Thursday, extending the monetary policy tightening that it began in December 2021 as it tries to dampen the inflationary pressures in the economy. But many economists and investors think the BoE will go on pause after Thursday’s expected move. More

WASHINGTON (Reuters) -U.S. Representative Jennifer Wexton, a Virginia Democrat, said on Monday she would not seek reelection after learning that her medical condition, diagnosed earlier this year as Parkinson’s Disease, was more serious than previously thought.Wexton, who represents an area of suburban Northern Virginia outside Washington, said she would serve out her current two-year term, which ends in January 2025, but would not seek a fourth term and would instead spend time with her husband and two sons.The 55-year-old congresswoman announced in April that she had been diagnosed with Parkinson’s but would continue to work while being treated for the disease, which was affecting her speech. Wexton said on Monday that after additional testing doctors had modified her diagnosis to a rare brain disorder called Progressive supranuclear palsy (PSP) that she described in a written statement as “a kind of Parkinson’s on steroids.”“I’ve always believed that honesty is the most important value in public service, so I want to be honest with you now, this new diagnosis is a tough one. There is no ‘getting better’ with PSP. I’ll continue treatment options to manage my symptoms, but they don’t work as well as they do for Parkinson’s.” Progressive supranuclear palsy is caused by a deterioration of brain cells that affect body movements, according to a description by the Mayo Clinic. It causes problems with coordination, thinking, walking, eye movement, and swallowing. “There is currently no treatment that effectively stops or slows the progression of PSP, and symptoms usually do not respond well to medications,” the National Institute of Neurological Disorders and Stroke said on its website. Wexton defeated Republican Barbara Comstock in 2018 to flip a House seat held by Republicans for decades and was reelected by a narrow margin during the 2022 midterms. Her decision not to seek reelection could create an opportunity for Republicans to re-take the seat, without an incumbent Democrat in the race. The seat could prove crucial as Republicans look to hold on to the narrow balance of power in the House they gained in the midterm elections and Democrats try to regain the majority. More