Economy

In recent years, European Union banks have increasingly turned to Additional Tier 1 (AT1) bonds to bolster their capital reserves in the aftermath of the global financial crisis. These high-risk debt instruments, also known as contingent convertibles or CoCos, are designed to convert into equity or be written off if a bank’s capital falls below
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Moody’s credit-rating firm, known for its strict evaluations of countries’ economic situations, has mentioned that it is unlikely to take negative rating actions on Japan even if the government fails to meet its primary budget-balancing target next fiscal year. According to their Japan sovereign analyst, Christian de Guzman, the target should be seen as a
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In recent months, financial executives and investors have been expressing concerns about the growing U.S. fiscal deficits. The reaction of bond vigilantes to spendthrift French politicians serves as a stark reminder that the market will ultimately determine the tipping point for debt sustainability. While there have been warnings about the potential risks associated with rising
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The Asian markets are entering the final trading week of the first half of the year with a mixed picture across different asset classes. While equities are looking reasonably positive, the currency and bond markets are showing signs of uncertainty. Chinese stocks, in particular, are struggling to maintain performance, with the recent decline widening the
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Chancellor Olaf Scholz has made it clear that Germany’s coalition government will prioritize sticking to its social agenda while also providing military aid to Ukraine. Despite the tight domestic budget situation, Scholz emphasized the importance of defending and further developing the welfare state. Budget Talks and Priorities The three-way coalition consisting of the Social Democrats
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The proposed European Union tariffs on Chinese goods have been a topic of discussion recently, with Germany’s Economy Minister Robert Habeck clarifying the intentions behind these measures during his visit to Beijing. Contrary to what some may believe, these tariffs are not meant to be a form of punishment, as highlighted by Habeck during a
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Recently, Turkish Finance Minister Mehmet Simsek held a meeting with investors in London, where Turkey was highlighted as a positive standout among emerging markets. This meeting provided an opportunity for Simsek to discuss the progress made in the Turkish economy over the past year and shed light on the potential steps to be taken in
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