Headlines

After three decades of ultra-loose monetary policy, even small hikes in interest rates by the Bank of Japan are poised to fuel an increase in the number of zombie companies that could be tipped into insolvency, Bloomberg News reported. Bankruptcies topped 5,000 cases for the first time in a decade between April and September, a report by Tokyo Shoko Research showed earlier this month. Those 5,095 firms collectively account for almost ¥1.38 trillion ($9.2 billion) yen in debt, with the largest slice coming from the service industry.

The perilous state of U.K. council finances means one in four local authorities could be forced to request emergency support from the government to avoid effective bankruptcy over the next two years, according to research, the Independent reported. A survey of council chief executives suggests projected funding shortfalls, which are expected to total more than £2 billion next year, will threaten the viability of many councils in England without measures in the Budget to ensure stability and protect vital services.

Australian billionaire Richard White has reached an out of court legal settlement with an alleged former lover who he was pursuing for bankruptcy, Bloomberg News reported. A notice of discontinuance was filed with the Federal Court of Australia late Monday, the court’s website shows. The case was settled out of court on Friday, according to a representative in barrister Bridie Nolan’s office, who asked not to be named because they aren’t authorized to speak publicly. Nolan was representing wellness entrepreneur Linda Rogan, who White had filed bankruptcy proceedings against.

Azul SA’s efforts to raise $400 million in fresh debt have hit a snag, with the troubled Brazilian airline rushing to raise the cash it needs to meet a key condition of its deal with aircraft lessors, Bloomberg News reported. Jefferies Financial Group had been reaching out to potential investors to help Azul raise cash through the sale of new debt that can be converted to equity, the people said, asking not to be named discussing private details. But the bank has so far come up short of the full amount.

China’s youth unemployment rate dropped in September after hitting a seasonal high during the summer but remained elevated, underscoring the strains in the country’s job market, the Wall Street Journal reported. The jobless rate among 16- to 24-year-olds, excluding students, stood at 17.6% last month, down from the peak of 18.8% in August, when millions of college graduates entered the labor market, data released by the National Bureau of Statistics showed on Tuesday.

Treasury Secretary Janet L. Yellen rebuked China’s “opaque” lending practices and urged global financial institutions and other creditors to accelerate debt relief to low- and middle-income countries in an interview on Monday, the New York Times reported. Her comments came ahead of this week’s annual meetings of the International Monetary Fund and the World Bank, where global economic policymakers are gathering in Washington at a pivotal moment for the world economy. Inflation has eased, but war in the Middle East has threatened to jolt energy markets.

Thailand central bank’s interest rate cut last week was a “recalibration” made by policymakers and doesn’t mark the start of an easing cycle, according to Governor Sethaput Suthiwartnarueput, Bloomberg News reported. “We do not see it as the beginning of an extended easing cycle,” the governor said at the Institute of International Finance forum in Washington on Tuesday.

Mexico is considering tax credits to attract foreign firms to invest and produce domestically, targeted at electric vehicle (EV), semiconductor, rare earth minerals, battery and electronics sectors, a top Mexican trade official said in an interview, Reuters reported. The comments come as Mexico's new government assesses how to spark more investment as companies look to move supply chains closer to their main market, while simultaneously navigating a turbulent and more protectionist period in the U.S. ahead of presidential elections.

GDP in Latin America and the Caribbean is set to grow 2.1% this year, three-tenths of a percentage point more than projected in July, the International Monetary Fund said on Tuesday, after revising growth forecasts for the region's two largest economies, Reuters reported. While the IMF significantly raised its 2024 growth forecast for Brazil to 3.0%, up from 2.1% in July, it noted in its updated World Economic Outlook that Mexico's economy is expected to expand 1.5%, seven-tenths of a percentage point less than previously estimated.

Bhaane Group, owned by celebrity Sonam Kapoor and her husband Anand Ahuja, is buying Rhythm House, an iconic music store in India’s financial capital Mumbai for 478.4 million rupees ($5.7 million), Bloomberg News reported. The 3,600-square foot Rhythm House had been shuttered in 2018 after Nirav Modi, the owner of Firestar Diamond International Pvt that ran the music store, defaulted on billions of dollars of bank loans. A resolution professional appointed by the Indian bankruptcy court oversaw the sale of the store confirmed the value of the deal to Bloomberg News in a telephone interview.