Headlines

Germany's economy will lose more than 260 billion euros ($265 billion) in added value by 2030 due to the Ukraine war and high energy prices, spelling negative effects for the labour market, according to a study by the Institute for Employment Research (IAB), Reuters reported. In comparison with expectations for a peaceful Europe, Germany's price-adjusted gross domestic product (GDP) will be 1.7% lower next year and there will be about 240,000 fewer people in employment, said the study published on Tuesday.

The Bank of England will probably have to raise interest rates further from their current 14 year-high to tackle inflation pressures that are gaining a foothold in Britain's economy, BoE Deputy Governor Dave Ramsden said, Reuters reported. Inflation's spread was now showing up in rising British pay and companies' pricing plans, having originally been triggered by the reopening of the world economy from COVID-19 lockdowns and then by Russia's invasion of Ukraine, Ramsden told Reuters.

Mexico’s inflation accelerated broadly in line with analysts’ estimates in July to the fastest pace since early 2001, as the central bank is seen delivering a second straight 75 basis-point increase to its key interest rate this week, Bloomberg News reported. Consumer prices rose 8.15% last month compared to a year earlier, slightly faster than the 8.14% median estimate of economists surveyed by Bloomberg, the national statistics institute reported Tuesday. On a monthly basis, inflation slowed to 0.74% from 0.84% in July, versus economists’ median estimate of 0.73%.

Brazil's consumer prices decreased more than expected in July, the country's statistics agency said on Tuesday, with the steepest drop ever on the benchmark IPCA index off the back of a string of anti-inflation measures by the government and central bank, Reuters reported. Prices in Latin America's largest economy fell by 0.68% last month, the IBGE statistics agency said. It was the lowest rate recorded since inflation measurements began in January 1980, IBGE said.

Chile’s inflation hit a new 28-year high in July as food and transportation prices surged and the peso plunged to an all-time low, boosting pressure on the central bank to extend its aggressive interest rate hikes, Bloomberg News reported. Prices rose 13.1% from a year prior, more than the 13% median forecast of economists in a Bloomberg survey. Monthly inflation stood at 1.4%, the national statistics institute reported on Monday. Chile’s annual inflation rate has risen for 17 consecutive months amid several back-to-back shocks.

Several countries in Europe dependent on Russian energy suffered another with confirmation Tuesday that oil shipments have stopped through a critical pipeline, the Associated Press reported. Russian state pipeline operator Transneft said it halted shipments through the southern branch of the Druzhba oil pipeline, which flows through Ukraine to the Czech Republic, Slovakia and Hungary. Transneft cited complications due to European Union sanctions for its action on Aug. 4, saying its payment to the company’s Ukrainian counterpart was refused.

A top arranger for Chinese junk dollar bonds says that a type of filing under the US bankruptcy code will play an important role for China’s distressed developers to restructure debt, buying them time to pay back creditors until markets recover, Bloomberg news reported. About 10 Chinese real estate companies could use so-called schemes of arrangement to restructure debt in a holistic fashion this year, Chen Yi, head of global capital markets at Haitong International Securities Group Ltd., said in an interview.

Ukraine's creditors vote this week on a government proposal to defer payments on the war-torn country's international bonds for 24 months as Kyiv hopes to swerve a $20 billion messy default, Reuters reported. Bondholders have until 5 p.m. New York time (2100 GMT) on Tuesday to decide whether to back or vote down the proposal by Ukraine's government, which faces a $5 billion monthly financing gap and liquidity pressures following Russia's invasion on Feb. 24. Time is precious: the country has a $1 billion bond maturing on Sept. 1.

Crypto exchange Zipmex will release Ethereum and Bitcoin tokens from this week, a spokesperson said on Monday, allowing 60% of its customers to retrieve their digital assets after a suspension of withdrawals from its Z Wallet product, Reuters reported. The Singapore-based Zipmex, which also operates in Thailand, Australia and Indonesia, in July halted withdrawals from Z Wallet, which it said had $53 million worth of cryptocurrencies exposed to Babel Finance and Celsius. Ethereum will be released on Thursday and Bitcoin on Aug. 16, the company said.

Hodlnaut, a Singapore-based crypto currency lender and borrower, has suspended withdrawals, swaps and deposits, the company said on Monday, the latest sign of stress in the cryptocurrency industry, Reuters reported. The crypto lender also said it would withdraw its application for a licence from the Monetary Authority of Singapore (MAS) to provide digital token payment services, for which it received in principle approval in March. Hodlnaut said the move was "due to recent market conditions" and was "to focus on stabilising our liquidity and preserving assets".