(Bloomberg) -- The Bank of Korea is poised to return to its usual pace of policy tightening Thursday as it aims to rein in inflation without exacerbating credit risks that threaten to weigh on economic growth. Fifteen of 17 surveyed economists see the central bank raising its key interest rate by a quarter percentage point to 3.25%. The remaining two expected it will back up last month’s half percentage-point increase with another move of that scale. The faster-than-usual tightening fueled angst in credit markets that were already roiled by the default of a local government-backed developer. That combination sent the spread between three-month commercial paper yields and the BOK’s policy rate to the highest level since the global financial crisis.
That will give him more room to maneuver and make it harder for Republicans to scuttle his foreign-policy agenda. He told reporters in Cambodia that ``I’m coming in stronger’’ to the meeting with Xi. ‘Red Lines’“What I want to do with him when we talk is lay out what each of our red lines are,” Biden told reporters Wednesday. Less than a year later, Russia invaded Ukraine and the US has severed almost all ties with Russia. Biden is also under pressure from many more nations -- such as security partners across Southeast Asia -- that worry a war over Taiwan would devastate them too.2 months ago BNN Bloomberg
(Bloomberg) -- Ukraine’s forces have liberated dozens of settlements during counteroffensives in the country’s east and south, President Volodymyr Zelenskiy said. The US also announced it was sending an additional weapons package to Ukraine that includes Avenger anti-aircraft systems made by Boeing Co., National Security Advisor Jake Sullivan said. Retreating Russian troops are trying to damage power lines and critical transport and other infrastructure in the region, according to the statement. President Volodymyr Zelenskiy even made a personal appeal for the military assistance when he spoke to the South Korean parliament in April. US Weapons Package to Total Up to $400 Million (9:30 p.m.)The latest US weapons package for Ukraine, drawn from Pentagon inventories, is valued at as much as $400 million, according to the Defense Department.2 months ago BNN Bloomberg
Biden and Xi Finally Met at the G-20 Summit in Bali. After their Bali meeting, Biden again condemned Beijing’s actions toward the island as undermining stability. Biden on Monday tried to reassure not only Xi of his intention to responsibly manage the relationship but also US allies in the Indo-Pacific. “I absolutely believe there need not be a new Cold War,” Biden said at a press conference following his sitdown with Xi. Read more: Biden, Xi Chart Path to Warmer Ties With Blinken China VisitAnd following the meeting, both sides seemed intent on signaling that it had proved a worthwhile exchange.2 months ago BNN Bloomberg
(Bloomberg) -- The world’s airlines are taking a cautious approach to China’s reopening, reluctant to immediately change up schedules and divert planes from other routes despite the internal pent-up demand for international travel. “I don’t think airlines will shift capacity from what they’re doing now in China,” Subhas Menon, director general of the Association for Asia Pacific Airlines, said. Prior to the pandemic, China had a massive outbound travel market. International airlines will also be seeking clarification around aircrew and whether they are able to stay overnight in China now quarantine has been dropped. The industry’s main trade body, the International Air Transport Association, also said the requirement for pre-departure Covid tests needs to be removed.1 month ago BNN Bloomberg
(Bloomberg) -- South Korean President Yoon Suk Yeol’s handling of a deadly crowd surge that killed more than 150 people will give him a chance to prove to critics he can lead, or hand his opponents more fodder to paint his administration as incompetent. Yoon convened emergency meetings just hours after the crush occurred late Saturday night in the popular nightlife district of Itaewon, where tens of thousands were celebrating Halloween. He quickly pledged medical and financial support to victims and their families, and vowed there would be thorough investigations and reviews of safety measures to prevent similar tragedies. Before becoming leader, Yoon made a name for himself as a prosecutor who took on politicians. So for now, both sides are likely to play it close to the chest.”--With assistance from Sam Kim and Emily Yamamoto.3 months ago BNN Bloomberg
Robust labor markets are defying central bank efforts to tamp down inflation and economists’ predictions that recession is just around the corner. But it can also be bad for inflation, signaling to the world’s central banks, which are raising interest rates at the most aggressive pace in decades, that they can’t ease up. The Monetary Policy Committee voted 7-2 to lift rates by 75 basis points to 3%, the highest level in 14 years. EuropeEuro-area inflation surged to a fresh all-time high, while the bloc’s economy lost momentum -- reinforcing fears that a recession is now all-but unavoidable. South Korea’s first decline in exports in two years is among the clearest signals yet that the global economy is cooling under the pressure of rising interest rates.2 months ago BNN Bloomberg
“Treasury is continuing enhanced analysis of Switzerland’s macroeconomic and exchange rate policies,” the department said. The Treasury signaled acceptance of unusual interventions in currency markets in such strained global circumstances. “China provides very limited transparency regarding key features of its exchange rate mechanism, including the policy objectives of its exchange rate management regime and its activities in the offshore RMB market,” the Treasury said, referring to the renminbi, the official term for China’s currency. The report was created decades ago out of concern that US trading partners would artificially weaken their currencies to gain a competitive advantage in trade. A manipulator designation has no specific or immediate consequence, but the law requires the administration to engage with those trading partners to address the perceived exchange-rate imbalance.2 months ago BNN Bloomberg