FT News Briefing Emerging markets debt crunch
5 snips
Apr 13, 2023 Donald Trump's legal battle with his former lawyer heats up as he sues for $500 million. Meanwhile, U.S. inflation dips, yet core prices pressure the Federal Reserve for potential interest rate hikes. The podcast highlights a staggering situation where 91 of the poorest countries will dedicate over 16% of their revenue to foreign debt repayments, raising alarms about financial stability and repayment crises. Discover how global issues and Chinese loans are exacerbating the challenges for these struggling nations.
AI Snips
Chapters
Transcript
Episode notes
US Inflation Update
- US consumer price increases eased to 5% year on year in March, the lowest in nearly two years.
- However, core inflation, excluding food and energy, remains high at 5.6%, indicating underlying price pressures.
Fed's Next Move
- The Federal Reserve is likely to continue raising interest rates due to persistent core inflation.
- Concerns remain about the potential impact of the credit crunch caused by recent banking turmoil.
Debt Crisis in Developing Countries
- Developing countries are facing a debt crisis, with repayments reaching their highest level in 25 years.
- This is exacerbated by rising local interest rates and global crises like the pandemic and the war in Ukraine.