Why the French and UK elections matter for investors
As two of Europe’s three largest economies head to the polls, what are markets telling us about the political landscape? Goldman Sachs Research’s Sharon Bell and George Cole explain how France’s looming parliamentary elections are affecting French stocks and bonds, while UK financial markets have been relatively stable ahead of the country’s general election.
Read more: Goldman Sachs
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China’s currency is not as influential as once imagined
Its share of international reserves has stalled
Chinese officials seem pleased with the yuan’s recent progress as a global currency. The international monetary system is diversifying at an accelerating pace, said Pan Gongsheng, the governor of China’s central bank, in March. The yuan has become the fourth-most active currency in global payments, he noted. In trade finance, it now ranks third. And according to the central bank’s data, about half of China’s transactions with the rest of the world (for financial assets, as well as goods) are now settled in yuan.
Read more: Economist
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India digital currency transactions slump after reaching initial c.bank target, sources say
Usage of India’s digital currency, the e-rupee, has slumped to just a tenth of the peak hit in December, four sources said, reflecting the struggles several countries have experienced in trying to generate public support for digital currencies.
The achievement came only after banks were asked to push up transactions by offering incentives to retail users and disbursing a portion of bank employees’ salaries using the e-rupee.
But now that the push has diminished, daily transaction numbers have fallen to about 100,000, said two of the sources, who are directly involved in the pilot.
This shows there is little organic demand to use the e-rupee, said a third source, a banker involved in the project.
Read more: Reuters
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Fed’s Bowman ready to hike interest rates again if inflation disappoints
A rate-setter at the US Federal Reserve raised the possibility that interest rates could be raised even higher if progress on defeating inflation was not maintained.
At an event in London, Michelle Bowman, a rate-setter at the Fed, said she was “willing to raise” interest rates again “should progress on inflation stall or even reverse”.
Read more: City AM
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Central Banks Urged to Adapt Rapidly to AI Advances, Says BIS Report
The Bank for International Settlements (BIS) has emphasized the urgent need for central banks to elevate their efforts in addressing the transformative impacts of artificial intelligence on global economies and financial systems. This comes from a detailed report published by BIS, highlighting the rapid advancements and potential disruptions brought about by generative AI technologies, such as large language models like ChatGPT.
The report, from the Financial Times, underscores the awareness among global financial authorities about the necessity to keep pace with the innovations driven by AI. According to the BIS, which provides banking services to central banks worldwide, AI is poised to be a “game changer” across various activities, significantly influencing the broader economy and financial landscape.
Read more: PYMNTS
