Sunday, December 22

Tag: Government Borrowing

Germany Gets Honest About What Net Zero Will Cost
3Dec By adminNo Comments
Health

Germany Gets Honest About What Net Zero Will Cost

If you had “net zero causing Germany’s government to collapse” on your 2023 bingo card, congratulations—you may end up a winner. Chancellor Olaf Scholz’s administration is falling apart because it turns out someone will have to pay for decarbonizing the eurozone’s largest economy.This shocking and horrifying revelation is brought to you by Germany’s highest constitutional court, which ruled in mid-November that Berlin’s favorite budget gimmick violates the balanced-budget amendment. The amendment, known as the debt brake, limits the federal general-budget deficit to 0.35% of gross domestic product in any year unless Parliament declares an emergency.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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S&P 500 Edges Higher, Building on November Gains
29Nov By adminNo Comments
Money

S&P 500 Edges Higher, Building on November Gains

The S&P 500 edged higher Tuesday, lifted by rising tech stocks and consumer-focused shares.The broad U.S. stock index is on pace to end November with its best monthly performance since July 2022, boosted by a decline in bond yields. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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The World’s Largest Buyer of U.S. Debt Isn’t Going Away
27Nov By adminNo Comments
Money

The World’s Largest Buyer of U.S. Debt Isn’t Going Away

Could the largest foreign buyer of American debt suddenly stop buying? Here is a comforting thought: This problem is probably already behind us.At a time when government issuance is massively expanding and firms face a 2025 refinancing cliff, overseas investors have gone from holding 43% of U.S. debt a decade ago to holding just 30%. Adding to the worries, the Bank of Japan might start raising interest rates next year, giving some Japanese owners a reason to repatriate their money.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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The World’s Largest Buyer of U.S. Debt Isn’t Going Away
27Nov By adminNo Comments
World

The World’s Largest Buyer of U.S. Debt Isn’t Going Away

Could the largest foreign buyer of American debt suddenly stop buying? Here is a comforting thought: This problem is probably already behind us.At a time when government issuance is massively expanding and firms face a 2025 refinancing cliff, overseas investors have gone from holding 43% of U.S. debt a decade ago to holding just 30%. Adding to the worries, the Bank of Japan might start raising interest rates next year, giving some Japanese owners a reason to repatriate their money.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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U.K. Budget Deficit Will Be Smaller Than Previously Expected, Treasury Chief Says
22Nov By adminNo Comments
World

U.K. Budget Deficit Will Be Smaller Than Previously Expected, Treasury Chief Says

Updated Nov. 22, 2023 9:06 am ETThe U.K. economy will grow much more slowly over the coming two years than previously forecast, although the government’s budget deficits will be slightly smaller than anticipated, Treasury Chief Jeremy Hunt told lawmakers Wednesday.The independent Office for Budget Responsibility expects the U.K. economy to grow by 0.6% this year, having previously forecast a contraction of 0.2%. But it lowered its growth estimate for next year to 0.7% from 1.8% previously, and its forecast for 2025 to 1.4% from 2.5%.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Wall Street Loves Washington’s New Debt Approach—for Now
19Nov By adminNo Comments
Money

Wall Street Loves Washington’s New Debt Approach—for Now

Updated Nov. 16, 2023 4:04 pm ETSwelling deficits and weak investor appetite for long-term U.S. debt are pushing the Treasury Department to get more creative with how it borrows. Markets are thrilled—but the approach comes with risks. The Treasury has long embraced the mantra of “regular and predictable” debt sales to avoid creating market volatility as it finances the U.S. deficit. Recently, though, high interest rates have driven investors to eschew longer-term Treasurys. The government has had to adapt, cutting back this month on expected increases in long-term bonds and favoring more short-term debt.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Where Have All the Foreign Buyers Gone for U.S. Treasury Debt?
17Nov By adminNo Comments
Money

Where Have All the Foreign Buyers Gone for U.S. Treasury Debt?

Foreigners no longer have an insatiable appetite for U.S. government debt. That’s bad news for Washington.The U.S. Treasury market is in the midst of major supply and demand changes. The Federal Reserve is shedding its portfolio at a rate of about $60 billion a month. Overseas buyers who were once important sources of demand—China and Japan in particular—have become less reliable lately.  Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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The $2 Trillion Interest Bill That’s Hitting Governments
15Nov By adminNo Comments
Money

The $2 Trillion Interest Bill That’s Hitting Governments

Nov. 14, 2023 11:00 pm ETListen to article(2 minutes)The world spent the past decade-plus taking advantage of rock-bottom interest rates to binge on debt. An unprecedented bill is coming due.Governments are expected to spend a net $2 trillion paying interest on their debt this year as higher interest rates make borrowing more expensive, up more than 10% from 2022, according to an analysis of International Monetary Fund data by research consulting firm Teal Insights and a separate analysis by Fitch Ratings. By 2027, it could top $3 trillion, according to Teal Insights. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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Stocks Snap Winning Streak After Powell Warns Inflation Victory Not Assured
10Nov By adminNo Comments
Money

Stocks Snap Winning Streak After Powell Warns Inflation Victory Not Assured

The S&P 500’s shot at its longest winning streak since 2004 appeared within grasp for much of Thursday’s trading session. Then Federal Reserve Chair Jerome Powell and the Treasury market crashed the party.Major indexes fluttered between small gains and losses in quiet trading through the early afternoon. They turned firmly into the red after an auction of government debt showed lower-than-expected demand and propelled Treasury yields higher. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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