Headlines

The Reserve Bank of Australia's latest Financial Stability Review indicates that total company insolvencies as a share of operating companies have stabilised over the past year, returning to their long-run averages, AccountingTimes.com.au reported. The RBA report said that easing cash flow pressures and recovering domestic demand have supported company viability. It noted that insolvencies saw a sharp increase in the years following the pandemic due to a catch-up effect from the exceptionally low number of insolvencies during the COVID-19 period, when temporary support measures were in place.

Australia and the European Union signed a free trade agreement on Tuesday after eight years of negotiations, removing tariffs on almost all goods and potentially easing EU access to Australian critical minerals, Reuters reported. However, some Australian agricultural exports, including beef and ‌sheep meat, will face quotas. Australian farmers criticised the pact for offering what they called "subpar" access to the bloc, while French farmers argued the ‌quotas were too generous. The deal follows intensified talks amid sharply higher U.S.

U.S. Ambassador to the European Union Andrew Puzder warned the bloc should expect more tariffs if it doesn’t approve a stalled trade deal with Washington, Bloomberg reported. “If the trade deal goes away, you guys get hit with the increased tariffs, and for us, nothing changes,” Puzder told Bloomberg News on Monday. “It’s economic malpractice not to pass this,” he added.

Japan's core consumer inflation slowed below the central bank's ​2% target in February for the first time in nearly four years, data showed, as government fuel subsidies offset rising import costs ‌from a weak yen and surging oil prices from the Iran war, Reuters reported. While the reading is unlikely to upend the Bank of Japan's monetary tightening plan, the downward price pressure from government intervention will make the bank's communication more difficult as it seeks to raise still-low borrowing costs.

Business activity in the U.S., Europe and parts of Asia slowed this month as energy prices and uncertainty were driven higher by the war in the Middle East, while a cooling of new orders pointed to longer-lasting harm if the conflict continues or escalates, the Wall Street Journal reported. Data firm S&P Global said Tuesday that its U.S. composite purchasing managers index fell to an 11-month low of 51.4 in March, compared with 51.9 in February.

Euro zone private sector growth nearly stalled this month as inflation ​expectations surged and delivery times soared, adding to mounting evidence that the bloc is already suffering a tangible drag from ‌the U.S. and Israeli war with Iran, Reuters reported. With oil prices up by two-thirds since the start of the year as a key transport corridor is shut, euro zone inflation is already rising and economic growth is taking a hit. Expensive fuel saps household purchasing power, lowers corporate profit margins and hits confidence.

Private-credit market jitters have spilled onto Wall Street, with some major U.S. banks tightening lending while the funds have capped withdrawals as mounting concerns prompt firms to curb risk and brace for further strain, Reuters reported. Sentiment had been dented by concerns over valuations and transparency, as well as cases such as the bankruptcy of auto-parts supplier First Brands and car dealership Tricolor, where some private-credit lenders held exposure. U.S.

The Supreme Court will consider a common clause in commercial loan agreements that allowed Bank of Ireland to raise interest rates in line with its increased lending costs in the wake of the financial crash, the Irish Times reported. In deciding the case is of significant public importance, a panel of three Supreme Court judges noted the interest variation clause had a “serious impact on borrowing and on the margins of commercial customers”.

Brazil's federal audit court TCU deferred its ruling on the Banco Master case despite the conclusion of an internal audit amid elements under review by ​other authorities that are necessary for its decision, the judge overseeing the ‌case said on Tuesday. In February, Reuters had already reported that the TCU audit did not give any recommendations regarding the central bank's conduct in the liquidation of Banco Master in November amid a sharp ​liquidity crisis and alleged sale of fraudulent credit portfolios.

A unit of Hong Kong conglomerate CK Hutchison said on Tuesday it had widened its claims in ‌an international arbitration case against Panama, saying damages had now risen to more ‌than $2 billion, Reuters reported. Panama Ports Company, which for nearly three decades operated the Balboa and Cristobal terminals near the ​Panama Canal, said it had supplemented its claims in proceedings under the International Chamber of Commerce's arbitration rules, a month after what it described as the state's illegal takeover of two port terminals and company property.