The United States is facing what is shaping up to be a perfect storm of economic bad news, with higher than normal energy prices and inflation compounded by a spiraling debt crisis and fears of economic turmoil amid high stakes debt limit talks. Meanwhile, BRICS nations are brainstorming a way to de-dollarize the international trade order.
Emerging market investors are slowly but steadily moving away from dollar-denominated debt and assets, instead preferring to park their hard-earned money into local currency bonds, an analysis by fund flow and asset allocation data provider EPFR Global has revealed.
According to the company’s figures, investors pulled out a net $2.65 billion out of primarily dollar-denominated assets between January and April of 2023, but added a net $5.23 billion into local currency bond funds.
Market analysts attribute the switch to attractive yields and falling inflation on local bond markets, and an increasingly unattractive dollar amid uncertainty surrounding interest rate-related volatility. The latter put a major dent in US Treasuries’ attractiveness to investors, and culminated in the collapse of Silicon Valley Bank in March, and panic among investors.
Fidelity International emerging markets debt portfolio manager Paul Greer expects the trend of weakened demand for dollar-denominated debt and assets to continue for the rest of the year. ABP Invest chief investment officer Thanos Papasavvas says there has been a “clear divergence between emerging market local and hard currency bonds [typically dollars and other major Western currencies, ed.] over the past few quarters with local currency debt looking more attractive on a fundamental and valuation basis.”
The trend of a cautious move away from the dollar, which continues to hold the coveted status of the world’s de facto reserve currency in trade, comes amid the growing risk of the US defaulting on its massive $31.8 trillion debt amid bickering between the White House and Republicans in Congress on federal spending and the debt limit.....More Below
In a development that has sent shockwaves through the global military community, Iranian armed forces on Thursday successfully targeted a US Air Force F-35 Lightning II, one of the world's most advanced stealth fighter jets.
It marks a potential turning point in modern aerial warfare and has sparked intense debate about the viability of stealth technology against determined, innovative opponents.
According to military pundits, it’s the first time ever that an F-35 jet has been struck.
The first reports emerged from an open source account, which said an F-35A/B Lightning II had “made an emergency landing” after being hit by an Iranian surface-to-air fire.
“We are aware of reports that a U.S. F-35 aircraft conducted an emergency landing at a regional U.S airbase after flying a combat mission over Iran,” Navy Capt. Tim Hawkins of CENTCOM later said in a statement to Military Times.
Social media has been abuzz with reactions to the major development, which has shaken the ...
Iran has obtained authentic information indicating that the United States and Israeli regime seek to announce a temporary ceasefire in the war with Iran in order to buy time, a report says.
Iran's Jamaran news website reported on Friday that the US-Israeli intention for a one- or two-day ceasefire aims to complete a plan to launch an attack on the southern parts of Iran.
“However, Iran has maintained almost complete dominance over the enemy’s sky and space,” it added.
“The least stop in Iran’s effective attacks on this geography can make it possible for the enemy to reconstruct its radars and defensive [systems] in the occupied territories and US bases in the region,” the report emphasized.
According to the report, the balance of power has changed over the past 48 hours after the striking of an American F-35 stealth fighter by Iranian forces, continuation of the Strait of Hormuz closure and high oil prices.
The enemies have considered all these factors in the ceasefire ...
Iran's Foreign Minister Abbas Araghchi has warned that the Islamic Republic will show "ZERO restraint" if its infrastructure is attacked.
"We have intelligence on Israeli plans to strike infrastructure. Once again: ZERO restraint if our infrastructure is attacked," Araghchi wrote in a post on X on Friday.
"We are men and women of principles. Iranians do not sneak attack adversaries while engaged in dialogue. Only when attacked do we powerfully respond," he added.
The warning came as the US and Israel started a fresh round of aerial aggression on Iran on February 28, some eight months after they carried out unprovoked attacks on the country.
Earlier this week, the invading coalition targeted Iran's main gas field, South Pars, in a major escalation. Tehran swiftly responded by targeting Qatar's Ras ......more below
