Headlines

Peru's consumer prices rose less than expected in January despite growing political tensions, but the 12-month rate still ticked up as the Andean nation battles the highest inflation in a quarter of a century, Reuters reported. Government data showed on Wednesday that consumer prices in the Lima metropolitan region, seen as the national benchmark, were up 0.23% in the first month of the year, well below the median forecast of 0.43% in a Reuters poll of economists.

Spain and Morocco are ready to overcome years of strained diplomatic relations with new business and energy deals, while ties between France and the North African nation remain frosty, Bloomberg News reported. Prime Minister Pedro Sanchez is planning to announce Thursday an €800 million ($869 million) credit line for Spanish investments in Morocco and 20 agreements that range from developing renewable energy to building water desalinization plants.

The Saudi Central Bank said on Wednesday it increased its key interest rates by 25 basis points, following the U.S. Federal Reserve's move as the Saudi riyal is pegged to the dollar, Reuters reported. The Saudi Central Bank, also known as SAMA, lifted its repo and reverse repo rates by 25 bps each to 5.25% and 4.75%, respectively, it said in a statement. Read more.

On the surface, calm has returned to Sri Lanka since the South Asian nation plunged into political chaos and virtual bankruptcy last summer, according to a New York Times analysis. Gone are the fuel lines that snaked for blocks; a seaside expanse that had been the site of a monthslong protest encampment was resplendent over the holidays with Christmas lights and carnival rides. But underneath, the island nation’s economy remains on a ventilator, with the government yet to secure a way out of crushing debt. Many young people are desperately trying to find a way out of the country.

The flagship company of beleaguered Indian tycoon Gautam Adani pulled a record 200 billion-rupee ($2.4 billion) share sale after a selloff triggered by a US short seller’s report engulfed his group in turmoil, Bloomberg News reported. Adani Enterprises Ltd. decided not to go ahead with its follow-on public offer of shares, according to a statement late on Wednesday. India’s Mint newspaper reported earlier that Adani was considering withdrawing the share sale, even though it was fully subscribed with backing from prominent Indian and Gulf investors.

More companies suffered insolvency last year in England and Wales than any time since 2009, government figures showed on Tuesday, reflecting the end of coronavirus pandemic support that helped many smaller businesses stay afloat, Reuters reported. Total insolvencies rose to 22,109 in 2022, their highest since the global financial crisis and up by 57% from a year earlier, according to data released by the British government's Insolvency Service agency. Part of the increase in the number of companies falling into difficulty reflects the higher number of companies overall.

Hong Kong is sticking with a plan to become Asia’s digital-asset capital despite the industry’s tarnished reputation, a stance drawing tentative interest from bruised crypto firms looking for paths to recovery, Bloomberg News reported. The city claims it will learn the lessons of a $2 trillion crypto market rout and a spate of global bankruptcies like the collapse of the FTX exchange to create a fresh regulatory framework that can protect investors and encourage growth.

Paperchase, the high street stationery retailer, is close to collapsing into administration as hopes of a solvent rescue deal fade. Sky News understands the chain's parent company could appoint insolvency practitioners from Begbies Traynor as soon as Tuesday. Paperchase's shareholders remain in discussions with more than one potential buyer, although insiders said that a sale of the business was now focused on a pre-pack deal, which involves a company's assets being sold immediately after it has fallen into administration.

Banks are whittling down a pile of unsold loans that backed private equity buyouts in the cheap-money era and trying to avoid heavy hits by refinancing the debt or selling chunks in secondary markets, bankers and investors said, Reuters reported. The stock of unsold loans in Europe is now less than 5 billion euros ($5.4 billion) from around 15 billion euros in the third quarter, two bankers estimated. Until the loans are offloaded, banks' capacity to underwrite new large buyout financing is limited, holding back mergers and acquisition (M&A) activity that slumped 27% in Europe last year.

Europe’s economy is showing signs it may avoid a recession this winter, even as it continues to cope with persistent inflation, rising interest rates and a war in Ukraine that shows no signs of abating, the New York Times reported. On Tuesday, the region’s statistics agency said the eurozone economy grew 0.1 percent in the last quarter of 2022, compared with the previous quarter. The data came hours after the International Monetary Fund raised its forecast for economic growth in the countries that use the euro to 0.7 percent in 2023, from a prediction of 0.5 percent made in October.