Credit rating agency Moody’s warned on Tuesday there could be another wave of sovereign and corporate downgrades if a wider global economic slowdown started to take place.
Over the 12-year period, Ontario’s net debt ballooned by $10,292 per person, which was the largest per-capita increase in the country.
The Paris-based research body said its gauges of future economic activity—which are based on information available for January—continue to point to slowdowns in the U.S., the U.K., Canada and Russia, but now also suggest growth is set to ease in Germany and Brazil.
The weak import figures on Tuesday highlighted how the slowdown in China’s huge construction and manufacturing sectors has crippled the country’s demand for commodities such as crude oil, iron ore, and copper. The export slowdown, meanwhile, shows that foreign demand is unlikely to cushion the blow from weak domestic conditions.
The International Monetary Fund is doubling down on its call for action to save the global economy.Ahead of last month’s G20 finance ministers meeting in Shanghai the IMF warned that the world was slowing and issued a call for more coordinated action by leading economies, reports Shawn Donnan in Washington.
Bold action from the European Central Bank on Thursday could trigger a domino effect of measures by other central banks that have been fighting against the strength of their respective currencies against the euro, analysts say.
Japan’s government has begun informally discussing a second delay to a hike in sales tax, as Prime Minister Shinzo Abe prepares for elections with household spending lower than when he came to office and still falling.
European government bonds extended gains from Monday while the region’s stocks declined as data confirmed economic growth slowed in the second half of 2015, underpinning the case for more stimulus from the European Central Bank.
The yield on the 30-year Japanese government bond, which moves inversely to price, fell 22.2 basis points to a record low of 0.458 per cent on Tuesday, its biggest one-day slide since 2013. Dealers described pension funds and life insurance companies performing “a desperate grasp for yield in a broken market”.
Gold & Silver
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