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IMF slashes global growth forecast on trade war fears


Global growth is set to fall to its slowest rate since the financial crisis this year, the IMF said on Tuesday, as it warned that the self-inflicted wounds of the US and China’s trade war had created a “precarious” economic situation.

Tit-for-tat tariffs have chilled business confidence and investment, the fund said, leaving global trade in goods almost stagnant and forcing central banks to cut interest rates to shore up growth.

For Both Trump and Xi, Trade Deal Comes Amid Growing Pressures at Home


BEIJING — The interim trade pact announced Friday between the United States and China came together as both countries’ leaders faced mounting political pressures and rising economic worries at home.

ECB's de Guindos raises bar for further rate cuts-Market News


BERLIN/FRANKFURT (Reuters) - The European Central Bank’s vice-president on Wednesday raised the bar on further interest rate cuts, saying the side effects of the ECB’s easy money policy were becoming more tangible.

In an interview with Market News, Luis de Guindos also ruled out a “policy U-turn” under the ECB’s incoming president Christine Lagarde and weighed in on a public spat among policymakers on last month’s decision to resume a 2.6 trillion euro bond-buying program.

World Bank boss warns global growth could disappoint


David Malpass, the president of the World Bank, has warned that global growth could fall short of the 2.6 per cent rate it predicted in June, in the latest sign of concern in multilateral institutions about the direction of the world economy.

In a speech in Montreal, ahead of the World Bank and IMF’s annual meetings next week, Mr Malpass warned that global growth was “slowing” and said he expected it to be even lower than the forecast from four months ago due to “Brexit, Europe’s recession, and trade uncertainty”.

IMF’s New Chief Vows to ‘Fix the Roof’ Before the Storm Hits


Kristalina Georgieva took the helm of the International Monetary Fund this week as its first leader to have lived through one of its stringent economic adjustment programs.

Her homeland of Bulgaria was going through a painful transition from socialism to a market economy in the 1990s, with surging debt and unemployment, a collapsing financial system and high inflation.

Bonds Get a Taste of What Happens When Central Banks Step Back


(Bloomberg) -- Bond traders just had an inkling of what it could be like when central banks and pension funds aren’t there to support them.

Mario Draghi declares victory in battle over the euro


From his corner office on the 40th floor of the European Central Bank’s gleaming twin tower headquarters in Frankfurt, Mario Draghi sums up how the ECB has been transformed during his presidency. “[The building] embodies our values,” says the 72-year-old Italian, with a touch of pride. “Transparency and independence.”

African Development Bank commits to coal-free financing


NAIROBI — The African Development Bank will no longer finance coal projects, bank president Akinwumi Adesina announced this week at the U.N. Climate Action Summit. It was the first public announcement by the bank committing to end financial support for coal.

“Coal is the past, renewable energy is the future,” Adesina told the audience. “For us at the African Development Bank, we are getting out of coal.”

IMF Approves Bulgaria’s Kristalina Georgieva as New Chief


WASHINGTON—The International Monetary Fund formally approved Bulgarian economist Kristalina Georgieva to be its next leader.

The IMF’s board of executive directors on Wednesday voted to select Ms. Georgieva for the role, effective Oct. 1. Currently the No. 2 official at the World Bank, she will take over from Christine Lagarde, who has been selected as the next president of the European Central Bank.

‘Secret’ IMF Meeting With Erdogan’s Foes Draws Government’s Ire


The International Monetary Fund got caught in the political cross-fire in Turkey after what government officials called its “secret” meeting with opposition party representatives and dissident economists on Saturday in Ankara.

On a visit as part of the fund’s Article IV consultation, an annual economic assessment of each of its member countries, top IMF officials met with representatives of CHP and IYI opposition parties, according to reports over the weekend.