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
This is Your President and the ultra rich & influential...smh😡🤬
Ambassador Andrey Kelin said Moscow would treat NATO soldiers on the ground as a security threat
Russia will treat the deployment of NATO troops to Ukraine as a threat to its security, Russian Ambassador to the UK Andrey Kelin has said.
The diplomat rejected plans by the so-called Coalition of the Willing to send “peacekeepers” to Ukraine after a ceasefire is reached with Russia.
“We will not allow [the deployment] of any NATO member state’s troops on the territory of Ukraine because it will be another line of attack against Russia,” Kelin said in an interview with Channel 4 News aired on Wednesday. “We understand that Ukraine wants guarantees. We also need guarantees,” he added.
The diplomat said the presence of foreign troops on Ukrainian soil would be unacceptable. Asked about a Financial Times report that Ukraine and its European backers had agreed to deploy Western troops in the event of a violation of a potential ceasefire, Kelin said such plans were “dead.”
Kelin...
The Washington Post, owned by Amazon founder Jeff Bezos, has begun a sweeping round of layoffs that will eliminate roughly one in three newsroom jobs, marking one of the most severe workforce reductions in the paper’s history.
Staff were informed on Wednesday that the cuts are part of what management described as a “broad strategic reset,” a move that will shutter entire departments, sharply reduce international coverage, and significantly restructure local and editorial operations.
Emails sent to employees on Wednesday morning indicated that about 300 of The Post’s roughly 800 journalists are expected to lose their jobs. Several staffers described the scale of the cuts as a “bloodbath.”
Employees were told they would be notified individually of their status and that those laid off would receive benefits through mid-April.
“These moves are painful,” Executive Editor Matt Murray said during a staff-wide call. “This is a tough day.”
Entire sections dismantled
According to Murray, the ...
