North America

What It Would Mean for the Global Economy if the U.S. Defaults on its Debt

If the debt crisis roiling Washington were eventually to send the U.S. crashing into recession, America’s economy would hardly sink alone, the Associated Press reported. The repercussions of a first-ever default on the federal debt would quickly reverberate around the world. Orders for Chinese factories that sell electronics to the U.S. could dry up. Swiss investors who own U.S. Treasurys would suffer losses. Sri Lankan companies could no longer deploy dollars as an alternative to their own dodgy currency. “No corner of the global economy will be spared” if the U.S.

United States
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Venator in U.S. Chapter 11 Bankruptcy Proceedings

Venator, the Huntsman spinoff that holds the family-owned business’s former titanium dioxide activities, has filed for protection from creditors under U.S. Chapter 11, Chemanager Online reported. The company, which is U.K.-registered but managed from the U.S. state of Texas, said it hopes to exit chapter 11 within approximately two months. CEO Simon Turner said Venator has reached agreement with the “overwhelming majority” of its lenders and noteholders on the terms of a comprehensive recapitalization plan that would equitize nearly all of its funded debt and strengthen its balance sheet.

United Kingdom
United States
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Japan's Mizuho Expands in U.S. Banking with $550M Greenhill Deal

Mizuho Financial Group Inc. will buy U.S. M&A advisory firm Greenhill & Co Inc. for $550 million including debt, the companies said on Monday, as Japan's No. 3 lender eyes a bigger share of the world's largest investment-banking fee pool, Reuters reported. The $15-per-share offer represents a premium of 121% to Greenhill's last closing price. Its shares had dropped nearly 40% over the 12 months till Friday's close as high interest rates weighed on dealmaking activity.

Japan
United States
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Bank of Canada's Macklem Says Inflation Coming Down Despite April Gain

Bank of Canada Governor Tiff Macklem suggested April's inflation increase - the first in 10 months - was an anomaly and said consumer prices would continue to come down, prompting markets to pare expectations for another hike, Reuters reported. The central bank has been warning Canadians that rates could go higher. April's unexpected acceleration in inflation to 4.4% from 4.3% in March has some economists forecasting a hike later this year. "Inflation has come down. It is coming down.
Canada
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U.S. Consultancy Mintz's Executives Leave Hong Kong after China Raid

Some Hong Kong-based staff with U.S. consultancy Mintz Group have left the city after the firm's Beijing office was raided by Chinese police in March, according to two sources with direct knowledge of the matter, Reuters reported. Investigations by Chinese authorities into Mintz, as well as U.S. management consultancy Bain & Co and mainland consultancy Capvision Partners, have sent a chill through companies that deal with China, with many unclear where red lines stand as Beijing prepares to introduce stricter anti-espionage laws in July.
United States
Hong Kong
China
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Mexico Seizes Part of Part Railway Line, Sending in Marines to Take over

The Mexican government sent in marines Friday to take over part of a private railway line in southern Mexico, the Associated Press reported. It was not clear whether the seizure of the rail line on the Isthmus of Tehuantepec constituted an expropriation. The government said that it would compensate the owners for what it called the “temporary occupation” of the railway run by a Mexican company, Grupo Mexico Transportes.
Mexico
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Inflation in Canada Quickens to 4.4% With Housing Costs Rising

Inflation unexpectedly reaccelerated in Canada but core measures continued to ease, potentially giving the central bank room to keep rates on pause as it waits for the tight labor market to cool, Bloomberg News reported. The consumer price index rose 4.4% in April from a year ago, the first increase in the rate of headline inflation since June 2022, Statistics Canada reported Tuesday in Ottawa. That’s faster than the 4.1% gain expected in a Bloomberg survey of economists, and up from 4.3% in March.
Canada
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Canada Housing Market Upturn Could Delay Shift to BoC Rate Cuts

Signs of recovery in Canada's housing market after a year-long slump, just as higher borrowing costs are expected to slow much of the rest of the economy, could raise inflation and delay a shift by the central bank to interest rate cuts, analysts said, Reuters reported. The housing market's upturn comes after the Bank of Canada paused its interest rate hiking campaign last month, leaving the benchmark rate at a 15-year high of 4.50% since January.
Canada
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Quadriga CX Bankruptcy Claimants to Get 13% on the Dollar

Former users of the bankrupt Canadian crypto exchange Quadriga CX will soon get a check for 13% of their claim, according to a notice to creditors published late Friday by accounting giant EY, CoinDesk.com reported. Documents from EY shows Quadriga’s estate owes CAD $303.1 million ($222.3 million) across 17,648 claims from creditors, including Canada Post and the country’s tax authority, Canada Revenue Agency (CRA). Filings show that there are 15 claims with a value greater than CAD $1 million, and 28 claims with a value between CAD $500,000 and $999,999.
Canada
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Binance Pulls Out of Canada Amid New Crypto Regulations

Binance said on Friday it was withdrawing from Canada, weeks after the country issued a series of new guidelines for cryptocurrency exchanges including investor limits and mandatory registrations, Reuters reported. Canada has tightened regulations for crypto asset trading platforms in recent months, with the introduction of a pre-registration process. The companies that do not adhere to the rules will face potential enforcement action, according to the website of the Ontario Securities Commission.
Canada
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