Headlines

Ukraine's central bank said on Thursday it would keep its main interest rate unchanged at 25% as inflation pressure remained high due to continued Russian missile strikes on critical energy infrastructure, Reuters reported. The central bank said it expected very sluggish economic growth and a bigger trade deficit this year as the economy adapts to a war-time reality of regular power outages and disrupted supply chains and logistics, Reuters reported.

The European Union is floating a plan to cap the price of Russian diesel at $100 a barrel — a level that might help to stave off the very worst effects of a fuel-imports ban that the bloc will impose on Moscow in just 10 days’ time, Bloomberg News reported. The EU’s executive arm is considering cap levels after the Group of Seven nations offered a price range based in part on the existing cap on Russian crude oil. The thresholds are expected to apply from Feb. 5, the same date as the EU will ban almost all imports of refined Russian products as punishment for the nation’s invasion of Ukraine.

Companies that have yet to switch over from the London interbank offered rate before a June phaseout deadline may have ways to hang on to the borrowing benchmark—at least temporarily, the Wall Street Journal reported. Libor, which underpins financial contracts such as corporate loans, mortgages and interest-rate derivatives, is set to phase out on June 30 in response to a yearslong manipulation scandal. While some businesses have already transitioned to a version of the Secured Overnight Financing Rate, U.S.

The German government on Wednesday said it expects to eke out economic growth this year instead of a decline as Europe’s largest economy manages its energy divorce from Russia and shells out support for consumers and businesses hit by higher energy costs, the Associated Press reported. The 2023 outlook improved to an 0.2% expansion from a 0.4% contraction that was expected in October, when Germany feared it would run out of natural gas used to power factories, generate electricity and heat homes this winter.

Mexican same-store retail sales rose by 10.6% across 2022 compared to the previous year, as the highest inflation in over two decades sent prices soaring, Mexican retailers' association ANTAD said Wednesday, with sales expected to moderate in 2023, Reuters reported. In 2022, sales at the retail group's member stores totaled 1.43 trillion Mexican pesos ($76.08 billion). The retail group said in a statement that surging consumer prices were partly responsible for the sales growth last year, as top-line inflation reached 7.82% in December.

Brazilian retailer Americanas SA reported 7,720 creditors and debt totaling nearly $8 billion within its restructuring process, a Rio de Janeiro court said on Wednesday, Reuters reported. Americanas, backed by the billionaire trio that founded 3G Capital, entered bankruptcy protection last week after disclosing "inconsistencies" in its accounting, leading top investors such as BlackRock and Capital International to scale back their positions in the firm.

The UK faces a wave of companies going bust as insolvency experts warn that the number of firms in “critical financial distress” has jumped by more than a third, MSN.com reported. A “red flag alert” by insolvency firm Begbies Traynor said tax authorities are chasing debts over Covid support which will send many smaller businesses over the edge into administration. It also highlighted the “intense strain an increasing number of companies are under as they are hit by rising labour and materials costs, higher energy bills and an economy likely heading into recession”.

North America’s produce industry will be rocked by the bankruptcy of Lakeside Produce Inc., in Leamington, Ontario, FreshFruitPortal.com reported. The firm faces total claims of $187,889,241. Lakeside lists assets at $3,580,233. The bankruptcy was filed on Jan. 17. DRC – the Dispute Resolution Corporation - in Ottawa, on Jan. 24 shared with FreshFruitPortal.com its public records on this stunning development. There are exactly 300 creditors listed in the official papers.

Cebu Air Inc. will fully restore its pre-pandemic capacity in March, putting the Philippines’ largest budget carrier on the path to “full recovery and profitability” this year, said President and Chief Commercial Officer Alexander Lao, Bloomberg News reported. Cebu Air probably cut its loss to 2.09-billion peso ($38.3 million) in 2022, according to street consensus, as easing of virus curbs and travel restrictions allowed it to mount more flights. Its losses peaked 27.2 billion pesos in 2021 after a 23-billion peso loss in 2020.

Ireland's central bank governor urged lawmakers on Wednesday to ban the advertising of crypto assets targetted at young adults, likening crypto not linked to any underlying assets to a Ponzi scheme, Reuters reported. A long-time critic of crypto assets, Gabriel Makhlouf said that while they presented minimal financial stability risk for now, the Irish regulator was very concerned about the impact on retail customers. "There's a reasonable number of young adults who have put their money into crypto and there is an uncomfortable level of advertising that is targeted at that cohort.