Russian Central Bank Hikes Interest Rate to 16% as Wartime Inflation Pressures Mount

Russia’s Central Bank (CBR) in a fight to arrest inflation and the fall of the plummeting Rouble hiked 100bps Friday morning to 16 percent, for the fifth consecutive time since summer to fight accelerating inflation. The Russian economy has been smashed but is said to be recovering on impacts from the invasion of Ukraine by scarcity and falling currency pushing up prices paid. The CBR has now raised its key rate by a cumulative 850 basis points since July, including … Continue reading “Russian Central Bank Hikes Interest Rate to 16% as Wartime Inflation Pressures Mount”

Moody’s Lowers Outlook on US Debt to Negative, Towards Fitch and S&P Global Downgrades

Rating agency Moody’s lowered its outlook on the US credit rating to “negative” from “stable”, pointing to a sharp rise in debt servicing costs with higher interest rates and “entrenched political polarization”. The move came after US markets had closed for the weekend. The move followed Fitch and S&P downgraded the US. The credit ratings agency maintained the USA’s top Aaa rating but changed its outlook to ‘negative’. Moody’s is the only of the three big credit rating agencies that … Continue reading “Moody’s Lowers Outlook on US Debt to Negative, Towards Fitch and S&P Global Downgrades”

Russia’s Currency Slide Accelerates, Is the Ruble the New Turkish Lira?

Russia’s ruble’s selloff has picked up speed falling to its weakest level in over a year, through 100 against the US dollar for the first time since the week after Russia’s invasion of Ukraine. Less than a month ago Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian Ruble hiked rates by a more-than-expected 100 basis points. The bank pointed to rising inflationary pressures. The central bank raised its key rate to 8.5% which surprised analysts polled … Continue reading “Russia’s Currency Slide Accelerates, Is the Ruble the New Turkish Lira?”

Fitch Downgrades United States Long-Term Ratings to ‘AA+’ from ‘AAA’, Outlook Stable

Rating agency Fitch downgraded the United States of America’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘AA+’ from ‘AAA’ on Tuesday. The Rating Watch Negative was removed, and a Stable Outlook assigned. The Country Ceiling has been affirmed at ‘AAA’. Fitch had warned debt limit games, political brinksmanship and reduced financing flexibility would impacts United States of America at ‘AAA’. Key Rating Drivers Ratings Downgrade: The rating downgrade of the United States reflects the expected fiscal deterioration over the next … Continue reading “Fitch Downgrades United States Long-Term Ratings to ‘AA+’ from ‘AAA’, Outlook Stable”

Ruble Slide Continues After Russian Central Bank Raises Rates 100bps

Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian Ruble hiked rates by a more-than-expected 100 basis points. The bank pointed to rising inflationary pressures. The central bank raised its key rate to 8.5% surprised analysts polled by Reuters, with a 50-basis-point hike the consensus. The ruble was 0.4% weaker against the dollar at 90.62 and 0.2% weaker at 100.73 versus the euro. It also dropped 0.1% against the yuan to 12.59. The ruble also felt the … Continue reading “Ruble Slide Continues After Russian Central Bank Raises Rates 100bps”

Germany Inflation Continued to Ease in April, However Energy Prices Did Rebound

Germany’s consumer price inflation eased further to 7.2 percent year-on-year in April 2023, down from 7.4 percent the month before and slightly below market expectations of 7.3 percent. Well down from 8.7% just two months ago. The rate hit its lowest level since August 2022, but remained well above the ECB’s target of 2.0 percent. Energy inflation accelerated bounced to 6.8 percent from 3.5 percent in the previous period but it still down sharply from 19.1 percent in February. However, … Continue reading “Germany Inflation Continued to Ease in April, However Energy Prices Did Rebound”

Germany Inflation Fell Further in March as Energy Prices Slowed Sharply

Germany’s consumer price inflation eased further to 7.4% year-on-year in March 2023, down from 8.7% in the previous two months. Market expectations were 7.3%. The rate hit its lowest level since August 2022, but remained well above the ECB’s target of 2.0 percent. Energy inflation slowed sharply to 3.5 percent from 19.1 percent in February. However, food prices still remain elevated, increasing at a faster 22.3 percent, compared with a 21.8 percent rise the month before. At the same time, … Continue reading “Germany Inflation Fell Further in March as Energy Prices Slowed Sharply”

US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P

Standard and Poors rating agency affirmed that the US sovereign ratings remain ‘AA+/A-1+’ and the outlook remains stable. The affirmation comes out in the midst of a banking crisis with the US having three bank failures in a week. SVB was the largest failure since Washington Mutual’s September 2008 collapse and the second largest in U.S. history. The S&P says sovereign stability is based on strong American institutions, a diversified and resilient economy, extensive monetary policy flexibility. The agency added … Continue reading “US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P”

Germany Inflation Falls in December with Government Help on Natural Gas Bills

Germany’s annual consumer price inflation fell to 8.6% in December 2022, from 10% reported in November and below the market consensus of 9.1% preliminary estimates showed. Inflation has been running rampant mainly due to energy costs which has led the ECB to raise rates aggressively and has impacted the German Bund sending yields to levels not seen since 2011. It was the inflation lowest rate since August. The German government with a one-time payment in December lowered household natural gas … Continue reading “Germany Inflation Falls in December with Government Help on Natural Gas Bills”

The World’s Largest Pension Funds, Who They Are and Where They Invest

Global pension funds saw relatively strong growth in 2021, recall the end of 2021 many stock markets hit all-time highs and the bond market had not been routed yet. The world’s 100 biggest pension funds were worth over $17 trillion in total, an increase of 8.5% over 2020. A study from the Thinking Ahead Institute and Pensions & Investments released in September 2022 gives us a look into who are the largest pension funds around the world. The top 20 pension funds … Continue reading “The World’s Largest Pension Funds, Who They Are and Where They Invest”