Headlines

Boris Johnson said Thursday that he would step down as British prime minister, following a wide-scale rebellion in his party, the Wall Street Journal reported. The step bookends an extraordinary 36 hours in British politics in which more than 50 ministers and senior government aides resigned, leaving the British government in a state of paralysis. Mr. Johnson said he would appoint a new cabinet as he stays in office until a successor has been found, a process that could take some months.

The head of the International Monetary Fund (IMF) on Wednesday said the outlook for the global economy had "darkened significantly" since April and she could not rule out a possible global recession next year given the elevated risks, Reuters reported. IMF Managing Director Kristalina Georgieva told Reuters the fund would downgrade in coming weeks its 2022 forecast for 3.6% global economic growth for the third time this year, adding that IMF economists were still finalizing the new numbers.

Pakistan’s central bank raised borrowing costs more than expected to quell Asia’s second-fastest inflation and meet conditions for a loan from the International Monetary Fund, Bloomberg News reported. State Bank of Pakistan lifted the target rate by 125 basis points to 15% on Thursday. The hike aims “to moderate domestic demand, prevent a compounding of inflationary pressures and reduce risks to external stability,” the central bank said in a statement. Inflation, due in part to pent-up demand, high global commodity prices and rising imports, surged to a 13-year high of 21.32% in June.

Mexico's annual inflation accelerated in June to a level not seen since early 2001, official data showed on Thursday, suggesting the central bank will have little choice but continue its monetary tightening to tame spiraling consumer prices, Reuters reported. Mexican consumer prices rose 7.99% in the year through June, the national statistics agency said. That was also far above the central bank's target of 3%, plus or minus a percentage point, and marked the highest level since January 2001, when Mexico's 12-month inflation stood at 8.11%.

Argentina's new economy minister must give her commitment to an IMF programme in order for the Paris Club of creditor nations to open talks on the South American country's debt, a Paris Club source said on Thursday, Reuters reported. Argentina was due to hold talks on Wednesday with the group of government creditors but had to pull out after the surprise weekend resignation of economy minister Martin Guzman days ahead of the trip to the French capital.

Egypt's annual urban consumer inflation slowed to 13.2% year-on-year in June from 13.5% in May, data from the state statistics agency CAPMAS showed on Thursday, Reuters reported. Month on month, headline inflation eased 0.1%, compared to a 1.1% increase in May. The sharpest annual price increases were in the food and drink, recreation, and restaurant and hotel sectors, according to CAPMAS. The central bank on Thursday said core inflation, which excludes volatile items such as food, rose to 14.6% year on year in June from 13.3% in May.

The French government will nationalize its financially-struggling nuclear giant Electricite de France SA to help it ride out Europe’s worst energy crisis in a generation, Bloomberg News reported. “The climate emergency requires strong, radical decisions. We need to have full control of the production and our energy future. We must ensure our sovereignty faced with the consequences of the war and the colossal challenges ahead,” Prime Minister Elisabeth Borne said during her policy speech in parliament in Paris on Wednesday.

Power prices in Europe surged on fears that Germany may soon start to limit gas-fired generation and concerns about limited availability of Electricite de France SA’s nuclear fleet, Bloomberg News reported. The German parliament will vote on legislation on Thursday allowing the government to curtail generation from gas plants not deemed to be essential for security of supply to conserve fuel. EDF warned this week that it may have to reduce output at some of its French nuclear reactors during the summer as a drought reduces the amount of river water available for cooling.

Sri Lanka’s negotiations with the International Monetary Fund on a bailout are more complex and difficult than before because it is a bankrupt nation, the country’s prime minister said on Tuesday, the Associated Press reported. Prime Minister Ranil Wickremesinghe told lawmakers that recent discussions with a visiting IMF mission were fruitful but not as straightforward as in the past. The South Asian island nation is in its worst economic crisis in memory.

Cryptocurrency lender Nexo plans to buy fellow lender Vauld, it said on Tuesday, the latest sign of consolidation in the digital currency industry as prices tumble, Reuters reported. Nexo, which is based in London, said it would buy up to 100% of Vauld and "reorganize its future operations with the aim to accelerate its deeper presence in Asia." It did not say when the deal would close. Singapore-based Vauld said on Monday that it had suspended withdrawals for its more than 800,000 customers.