Headlines

A group of lenders asked a court to impose bankruptcy oversight on multiple units tied to the struggling Indian education technology company Byju’s, claiming millions of dollars are being “siphoned” out of the companies, Bloomberg News reported. Creditors led by HPS Investment Partners filed involuntary chapter 11 cases in Delaware against Neuron Fuel Inc., Epic! Creations Inc. and Tangible Play Inc. on Wednesday. All three were once affiliated with Byju’s Alpha, a unit of the once high-flying startup that was put into bankruptcy earlier this year after defaulting on $1.2 billion of debt.

German financier Lars Windhorst was cleared after a German criminal investigation into whether he breached banking rules by setting up a financing vehicle to pay back investment firm H2O Asset Management, Bloomberg News reported. Berlin prosecutors dropped the probe because they didn’t find evidence that would have warranted criminal charges, a spokesman for the agency said. The probe was officially closed in April.

Canadian cannabis retail chain Four20 Premium Markets, one of the largest dispensaries in Alberta, has announced plans to file for bankruptcy, BusinessofCannabis.com reported. The parent companies of the 35-store retail chain, 420 Premium Markets Ltd., 420 Investments Ltd. and Green Rock Cannabis, filed a ‘notice of intent’ to file for bankruptcy under. According to Stratcann, the notice was filed on May 29, 2024, following an extended and costly legal battle with Tilray.

Sri Lanka and a group of creditors are in advanced talks over a deal aimed at restructuring the nation’s debt with bilateral lenders, Bloomberg News reported. The government and members of the official creditor committee, which includes India, Hungary and the Paris Club, are exchanging draft versions of the accord, or memorandum of understanding. The documents are needed to finalize an agreement reached in November between the South Asian nation and the official creditor committee and hash out the few remaining issues before a deal is settled.

The Bank of Canada cut interest rates by a quarter of a percentage point, making it the first Group of Seven central bank to kick off an easing cycle, Bloomberg News reported. Policymakers led by Governor Tiff Macklem lowered the benchmark overnight rate to 4.75% on Wednesday, as widely expected by markets and economists in a Bloomberg survey. Officials say they’re more confident that inflation is headed to the 2% target, and said it’s “reasonable to expect further cuts,” if progress continues.

Thai Prime Minister Srettha Thavisin’s administration is discussing ways to exert more control over the country’s central bank after repeatedly clashing with the monetary authority on economic policy, Bloomberg News reported. One of the measures under discussion focuses on the Bank of Thailand’s board chairman role, which will open up in September, the people said. While the chairman doesn’t have powers to dictate monetary policy, the official can evaluate the BOT governor’s performance as well as have a say in which outside experts join the Monetary Policy Committee.

A private gauge of China’s services sector signaled the fastest pace of growth in 10 months in May, echoing official data thanks to strong business activity and market demand, the Wall Street Journal reported. The Caixin services purchasing managers index increased to 54.0 in May from 52.5 in April, Caixin Media Co. and S&P Global said Wednesday. The index, which has now stayed in expansion territory for 17 straight months, reached its highest level since July 2023. A reading above 50 suggests expansion, while one below indicates contraction.

Germany’s jobless rate was stable at a low rate for a sixth-straight month, reflecting a resilient jobs market in Europe’s largest economy, ahead of a European Central Bank interest-rate cut later this week, the Wall Street Journal reported. The adjusted unemployment rate was 5.9% in May, data from the Federal Employment Agency showed Tuesday. The number of jobless claims rose by 25,000 in May, on a seasonally adjusted basis, ahead of estimates of 10,000 and the 8,000 increase recorded in April. Registered job vacancies stood at 702,000, down 65,000 on year, the agency said.

German Finance Minister Christian Lindner announced plans for €23 billion ($25 billion) in income-tax relief for households through 2026 even as he wrestles with his coalition partners over how to plug a hole in next year’s budget, Bloomberg News reported. The proposal includes increasing the tax-free allowance for low earners, as well as lifting earnings brackets to offset the effect of inflation as workers are pushed into higher tranches under the country’s progressive taxation system.

Turkey is considering taxing proceeds from investments in stocks and cryptoassets as part of a fiscal tightening push. Stocks and the lira fell on the news, Bloomberg News reported. Treasury and Finance Minister Mehmet Simsek discussed the plans during a ruling-party meeting over the weekend, AK Party officials told Bloomberg, asking not to be identified as the discussions were private. Simsek emphasized the need for proper taxation of all financial income during the meeting, the people said. Turkey cut the tax rate on profits from stock-market trading to 0% from 10% in 2008.