Headlines

New bank lending in China rebounded far less than expected in May and some key money gauges hit record lows, suggesting the world's second-largest economy is still struggling to regain its footing even as the central bank seeks to bolster confidence. Chinese banks issued 950 billion yuan ($130.93 billion) in new yuan loans last month, compared to 730 billion yuan in April, according to Reuters calculations based on the latest data from the People's Bank of China (PBOC) released on Friday.

The Bank of Japan said it would reduce government bond purchases in a signal of monetary tightening, as it left its policy interest rate unchanged, the Wall Street Journal reported. Monetary tightening in general should support the yen, but the Japanese currency instead weakened Friday because the central bank didn’t offer specifics on its bond plans. The yen was trading at around 158 to the dollar after the move, compared with around 157 before. Later Friday the yen recovered some of the lost ground.

Ghana and its bondholders will restart talks next week to hash out a debt restructuring deal on $13 billion of international bonds, four sources told Reuters, on the heels of a deal finalised with official creditors earlier this week, Reuters reported. Ghana, a gold and cocoa producer, defaulted on most of its $30 billion in external debt in 2022, weighed by the COVID-19 pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs.

Monthly inflation in Argentina slowed to its lowest level in May since early 2022, capping the fifth straight cooler print under President Javier Milei as market doubts linger that the trend can be sustained, Bloomberg News reported. Consumer prices rose 4.2% last month, less than economists estimates for 5% and the lowest level since January 2022. From a year ago, inflation slowed to 276.4%, according to government data published Thursday. Communication costs and education led monthly price gains in May by categories.

The National Company Law Tribunal (NCLT) in Mumbai has admitted the Prudent ARC’s application to initiate personal insolvency resolution proceedings against Mahesh R Shetty, promoter of the listed coaching firm MT Educare, formerly known as Mahesh Tutorials, for a Rs 16.64 crore default by the company. Shetty was a personal guarantor against these loans, the Economic Times of India reported. The tribunal has also directed the resolution professional Santanu T. Ray to issue a public notice to invite claims from all creditors.

Chinese electric-vehicle makers, increasingly a global force, have been bracing for months for the prospect of hefty tariffs in Europe, one of their most promising markets. When that day arrived on Wednesday, many were prepared, the Wall Street Journal reported. Some have already started building factories on the continent, while others have set up joint ventures with companies in the bloc.

Taiwan’s central bank held interest rates steady as cooling inflation and solid economic growth give it space to keep policy settings unchanged for now, the Wall Street Journal reported. The Central Bank of the Republic of China (Taiwan) kept its benchmark discount rate at 2.000% on Thursday, as expected in a poll of seven analysts by The Wall Street Journal. It maintained its secured loan rate and unsecured loan rate at 2.375% and 4.250%, respectively. The Taiwanese central bank attributed the decision to cooling inflation and a solid outlook on its economy.

The euro zone’s underlying consumer price growth is proving stubborn, according to European Central Bank Governing Council member Joachim Nagel, Bloomberg News reported. Speaking at the International Economic Forum of the Americas, the Bundesbank president reiterated that he and his colleagues won’t simply lower borrowing costs automatically, but rather judge conditions at each meeting as it comes. “It’s true that core inflation is still very sticky,” Nagel said Wednesday in Montreal, Canada, while acknowledging that it was right to ease policy last week.

Atos shares lost more of their value in early trading, adding to losses already reported this week as the French IT firm works on implementing its financial rescue, the Wall Street Journal reported. At 0743 GMT shares traded 5% lower at EUR0.73. The shares have lost around 37% of their value this week alone and are now down around 95% from a year ago.

President Javier Milei will meet face-to-face with the head of the International Monetary Fund in Italy this week, with Argentina claiming it has cleared a key hurdle as it seeks fresh funds to eventually lift capital controls, Bloomberg News reported. The libertarian leader’s talks Friday with Managing Director Kristalina Georgieva on the sidelines of the Group of Seven summit will take place a day after the Fund’s executive board votes on its latest review of the crisis-prone South American nation’s $43 billion program.