Headlines

Japan's biggest lenders on Wednesday all sounded alarm about the risk the Omicron variant could have on their earnings, reviving concerns that a resurgent pandemic could trigger more bad loans, Reuters reported. It was a sobering assessment from Japan's three top banks - some of the world's biggest lenders by assets - and underscored how the latest coronavirus variant could put more downward pressure on an already fragile domestic economy. Top lender Mitsubishi UFJ Financial Group Inc.

The Philippine government’s outstanding debt reached 11.7 trillion pesos ($229 billion) at end-December, up by a fifth from a year ago, according to the Bureau of the Treasury, Bloomberg News reported. The debt-to-GDP ratio widened to 60.5% in 2021 from 54.6% in the year previous.

Finance Minister Nirmala Sitharaman on Tuesday proposed faster resolution of bankrupt companies by paving the way for amendments to the Insolvency and Bankruptcy Code (IBC), seeking to make cross-border deals easier and speed up voluntary unwinding of defaulting borrowers, the Economic Times of India reported. “Necessary amendments in the Code will be carried out to enhance the efficacy of the resolution process and facilitate cross- border insolvency resolution,” Sitharaman said.

India’s record borrowing plan prevents Fitch Ratings from reverting to a stable outlook from negative, keeping alive the possibility of a sovereign downgrade to so-called junk status over the coming year, Bloomberg News reported. The nation has the highest general government debt ratio among peers rated BBB-, Fitch said in a statement a day after India pledged to double down on debt-fueled spending. Active steps to reduce debt is key to revising the outlook, Fitch said.

Peru’s inflation slowed more than expected in January as transportation prices fell, providing a welcome relief to the central bank which faced in 2021 the fastest rise in prices in 13 years, Bloomberg News reported. Annual inflation slowed to 5.68%, compared with the 5.99% median forecast of analysts surveyed by Bloomberg. Consumer prices increased 0.04% from December, the national statistics bureau reported Tuesday. Prices for food, energy and fuel surged in Peru and across Latin America last year as the pandemic and lockdowns spurred supply-chain snarls and shortages.

Northern Ireland's Agriculture Minister on Wednesday ordered a halt from midnight to all post-Brexit checks on goods coming into the region from the rest of the United Kingdom, a move Dublin and some of his partners in government said was unlawful, Reuters reported. Edwin Poots, a member of the Democratic Unionist Party (DUP), which opposes the Northern Ireland protocol mandating such checks, cited legal advice that the measures should not have been introduced without approval from the regional government.

Britons will learn the scale of the financial pain they face on Thursday when the energy regulator Ofgem announces an increase to its price cap, with under-pressure households expected to see bills soaring by about 50%, Reuters reported. Ofgem will announce the new cap at 1100 GMT - an hour before the Bank of England is expected to hike interest rates again to tame surging inflation.

Latam Airlines Group SA can send its $5.4 billion bankruptcy-exit plan to creditors for a vote, a judge said Tuesday, handing the airline a partial victory over debtholders who want to pursue alternatives, including a takeover by rival Azul SA, Bloomberg News reported. The decision means the company can seek final court approval for its reorganization plan in April and possibly exit bankruptcy several months after that, should it get support from securities regulators in Chile, where Latam is based.

Euro zone unemployment fell to its lowest level on record in December, data showed on Tuesday, testament to the strength of the economic recovery and the effectiveness of part-time work schemes used to preserve jobs during pandemic lockdowns, Reuters reported. The European Union's statistics office Eurostat said the unemployment rate in the 19 countries sharing the euro fell to 7.0% of the workforce from a revised 7.1% in November -- the lowest rate on record since measurements started in April 1998. Economist polled by Reuters had expected a 7.1% jobless rate.

A group of U.K. manufacturers said its energy bills are set to soar this year, warning of potential closures, curbs in production and higher costs for consumers, Bloomberg News reported. Net Zero North West -- a consortium of industrial firms in northwest England -- said in a statement that four of its members are facing a collective bill of as much as 1 billion pounds ($1.3 billion) this year, about 65% higher than in 2020.