Headlines

World Bank President David Malpass on Wednesday suggested that Russia's war in Ukraine and its impact on food and energy prices, as well as the availability of fertilizer, could trigger a global recession, Reuters reported. Malpass told an event hosted by the U.S. Chamber of Commerce that Germany's economy, the world's fourth largest, has already slowed substantially due to higher energy prices, and said reduced production of fertilizer could worsen conditions elsewhere. "As we look at the global GDP ... it's hard right now to see how we avoid a recession," Malpass said.

The International Monetary Fund (IMF) said that it made “good progress” in analysing Sri Lanka’s economic situation and identifying policy priorities, while cautioning that a loan would require adequate assurances that debt sustainability will be restored, Bloomberg News reported.

Mexico's central bank signaled concerns over rising inflation, made worse by global supply constraints and the war in Ukraine, as it raised its key rate by 50 basis points to 7.0%, minutes from the latest monetary policy meeting showed on Thursday, Reuters reported. "Most members stated that the balance of risks for the trajectory of inflation within the forecast horizon remains biased to the upside and has continued deteriorating," the Bank of Mexico said in the latest minutes.

China's property market, a key pillar of the world's second-largest economy, has weakened sharply in the past year as a result of a government clampdown on excessive borrowings by developers, and a COVID-19-induced economic slowdown, Reuters reported. So far this year, more than 100 cities have taken steps to boost home purchase demand via cuts in mortgage rates, smaller down-payments, and subsidies. However, the outlook remains bleak as the government enforces strict COVID curbs in dozens of cities, weighing on consumer confidence.

China and the United States are committed to reach an arrangement on the audit inspection issue that is in line with legal and regulatory requirements for both sides, China's securities regulator said on Wednesday, Reuters reported. The statement from the China Securities Regulatory Commission (CSRC) came in response to a U.S. Securities and Exchange Commission (SEC) official saying "significant issues remain" in reaching a deal over U.S.-listed Chinese company audits.

Boris Becker has reportedly been transferred to a prison used to detain foreign criminals, indicating he will be deported from the UK at the end of his sentence, the Guardian reported. According to the Times, Becker’s lawyer told journalists in Berlin that he had been transferred to HMP Huntercombe in Oxfordshire. The former world No. 1 tennis player had been detained at Wandsworth prison, a category B prison, after he was jailed for two and a half years for concealing £2.5m of assets to avoid paying money he owed after his bankruptcy. He will serve half of the sentence.

Russia will service its dollar debt in rubles after the expiry of a sanctions loophole closed the option of payments in the US currency, potentially putting Moscow on track to default, Bloomberg News reported. The announcement came a day after the US confirmed the end of the waiver, creating another headache for Russia as it tries to get funds to investors. A payment in rubles would breach the terms on a 2026 dollar bond with coupons due this Friday, triggering a 30-day grace period before Russia could potentially slip into default.

European Union states have reported the freezing of about 23 billion euros ($24.5 billion) of assets of the Russian Central Bank, a top EU official said on Wednesday, revealing for the first time a figure that was expected to be much higher, Reuters reported. Russia has publicly said that Western sanctions led to the freezing of about $300 billion of its central bank's assets globally.

Some 62 million barrels of Russia's flagship Urals crude oil, a record amount, are sitting in vessels at sea, data from energy analytics firm Vortexa showed, as traders struggled to find buyers for the crude, Reuters reported. The United States and other countries have banned imports of Russian crude and oil products over its invasion of Ukraine, and others have avoided acquiring cargoes out of fear of future sanctions. The European Commission is considering an embargo of Russian oil.

Germany plans to order coal-fired power plants that were due to be shut down to be placed in reserve, as part of a plan to ensure the country can keep the lights on if supplies of natural gas from Russia are abruptly cut, the New York Times reported. A bill drawn up this week by the economy ministry, led by Robert Habeck, a member of the Greens, envisions maintaining power plants that burn coal and brown coal, or lignite, so they could by fired up on short notice. The proposed regulation, if adopted, would remain in place through March 31, 2024.