2025-10-17 22:16

Uncertainty overshadows annual meetings of IMF, World Bank IMF committee chair sees enduring power in institution New Zealand finance minister sees ongoing commitment to cooperation WASHINGTON, Oct 17 (Reuters) - International Monetary Fund chief Kristalina Georgieva on Friday said she hoped the U.S. and China could ease trade tensions and avoid a cutoff in the flow of rare earths to the global economy that she said would have a "material impact" on growth. Such a scenario would exacerbate uncertainty and hurt an already weakened global growth picture, Georgieva told reporters after a meeting of the IMF's steering committee, where member countries voiced concerns about a host of risks facing the global economy. Sign up here. This year's annual meetings of the IMF and World Bank took place days after a fresh flare-up in a simmering trade war between the world's two largest economies that dominated discussions among thousands of finance officials and central bankers from around the world. The IMF on Tuesday forecast global real GDP growth at 3.2% for 2025, up from a July forecast of 3.0% and a more severe April forecast of 2.8%, saying tariff shocks and financial conditions had proven more benign than expected. That did not reflect the latest threats raised by the U.S. and China. Georgieva said the IMF would keep a careful eye on developments, but noted that members were generally relieved that the global economy had proven more resilient than feared just six months ago. Countries were ready to "roll up their sleeves" to strengthen fundamentals, carry out regulatory reforms and tackle persistent global imbalances, although they remained deeply unsettled, she said. "There is also still a sense of anxiety, because the performance of the world economy is less than we need it to be, and because there is a very dark cloud of uncertainty still holding lower our heads, and that uncertainty has become now the new normal." Saudi Finance Minister Mohammed Al-Jadaan, who chairs the International Monetary and Financial Committee, said members engaged in a candid exchange of views despite their differences. "The mood was actually very positive, and there is an appreciation of the value that this committee and institution brings as a convening power to resolve problems that no one country can resolve on its own," he said. New Zealand Finance Minister Nicola Willis told Reuters that her country still saw real strength in the multilateral institutions and global trade rules. "What's come through, both in my bilateral meetings and the meetings with the IMF and World Bank, is that despite that uncertainty around the U.S. trade position, there is an ongoing commitment to multilateral organizations, to the free trade agreements that countries already have together, or as regions," she said. France's new development minister, Eleonore Caroit, said the meetings showed continued support for financing development. "I don't want to be overly optimistic, because obviously we have clear differences of approach and of understanding with regards to climate, but I do believe that there is a way to work towards important changes that are needed," she said. TRADE TENSIONS, GLOBAL IMBALANCES AMONG CONCERNS Al-Jadaan issued a chair's statement - not a communique that would have required consensus - that reflected concerns about growing trade tensions, advances in artificial intelligence and shifts in global markets, while holding out hope for resilient growth and continued disinflation. The statement from the IMFC, which represents the crisis lender's 191 member economies, also flagged downside risks from low economic growth, high debt, extreme weather events, excessive global imbalances and wars. "Major policy shifts in trade and other areas are reconfiguring global markets and policy frameworks, heightening uncertainty," it said. "These changes, as well as transformative forces such as digitalization and demographic shifts, bring challenges but also opportunities." The statement predicted continued disinflation, but with variations across countries. IMF executives this week noted that countries imposing tariffs, such as the U.S., faced potentially higher inflation for longer, while some Asian economies such as China risked deflation. The statement also stressed the need for independent central banks to maintain policy credibility. "Central banks remain strongly committed to maintaining price stability, in line with their respective mandates, and will continue to adjust their policies in a data-dependent and well-communicated manner," the statement said. It also called for tackling financial vulnerabilities and risks by "strengthening surveillance of systemic risks stemming from AI, non-bank financial institutions and digital assets, while harnessing the benefits of financial and technological innovation." https://www.reuters.com/markets/us/imf-steering-committee-eyes-risks-hopes-more-disinflation-2025-10-17/

2025-10-17 21:55

Apollo, Delta back Mexican full-service carrier Aeroméxico set to return to public markets after over two years Legacy airline emerged from bankruptcy in 2022 Oct 17 (Reuters) - Grupo Aeroméxico said on Friday it was targeting a valuation of up to $2.92 billion in its U.S. initial public offering, as the Mexican carrier looks to go public again after over two years. Mexico City-based Aeroméxico and some of its existing shareholders are seeking up to $234.5 million by offering 11.7 million American Depositary Shares priced between $18 and $20 each. Sign up here. Mature companies often seek a return to public markets after a successful reorganization under bankruptcy. Aeroméxico filed for Chapter 11 bankruptcy protection in 2020 with $2 billion in debt, as the pandemic hammered travel demand. Backed by alternative asset manager Apollo Global (APO.N) , opens new tab and U.S. carrier Delta (DAL.N) , opens new tab, Aeroméxico has since bounced back after emerging from bankruptcy in 2022. Private investment fund PAR Investment Partners intends to purchase $25 million of Aeroméxico shares in a concurrent private placement at a per share price of 95% of the IPO price. Aeroméxico is one of the older names in the IPO pipeline, having publicly filed paperwork in May 2024. Chile-based LATAM Airlines returned to the New York Stock Exchange in July 2024 after a $456 million IPO. PUBLIC MARKETS RETURN Founded in 1934 as Aeronaves, the legacy airline was nationalized by the Mexican government in 1959. It started operating under the commercial name "Aeroméxico" in 1971. Aeroméxico was state-owned for decades until 2007, when an investor consortium led by Citigroup (C.N) , opens new tab acquired it for about $250 million following a fierce bidding war against the Saba family. The full-service carrier initially went public in 2011 and traded on the Mexican Stock Exchange (BMV) until 2022, when it delisted as part of its bankruptcy restructuring. Aeroméxico, focused on business and leisure passengers, competes with low-cost carriers Volaris (VOLARA.MX) , opens new tab and Viva Aerobus. Barclays, Morgan Stanley, J.P. Morgan and Evercore are the joint lead book-running managers. Aeroméxico plans to list on the New York Stock Exchange under the symbol "AERO." https://www.reuters.com/business/aeromxico-backers-aim-raise-235-million-us-ipo-2025-10-17/

2025-10-17 21:22

Oct 17 (Reuters) - Global credit ratings agency Moody's downgraded Botswana's rating to 'Baa1' from 'A3' on Friday, citing the government's challenges in adjusting to a structural downturn in the diamond industry and increasing government debt. "The economy remains heavily reliant on capital-intensive diamond mining; diversification efforts lag due to reform delays, while exposure to climate shocks persist," Moody's said , opens new tab in a statement" Sign up here. Long viewed as an African economic success story, Botswana is in a slump due to a prolonged downturn in the global diamond market, its key export, with demand hurt by global economic uncertainty and the rising popularity of lab-grown stones. The world's leading producer of diamonds by value, whose diamond exports continue to drive foreign exchange, has seen sector weakness widen its current account deficit and push reserves to a historic low, according to Moody's. It expects Botswana's economy to likely decline by an additional 6% in 2025 as it remains exposed to global demand shocks and technological disruption from lab-grown alternatives and changes in consumer preferences Last month, peer agency S&P , opens new tab cut Botswana's rating to 'BBB' as it expects weak global diamond demand and prices will keep the Southern African country's external and fiscal flow positions weak. The agency said the global diamond downturn is unlikely to reverse, while maintaining the country's outlook at 'negative'. https://www.reuters.com/world/africa/moodys-cuts-botswanas-rating-by-notch-baa1-amid-diamond-industry-slump-2025-10-17/

2025-10-17 21:02

WASHINGTON, Oct 17 (Reuters) - Japanese Finance Minister Katsunobu Kato said on Friday authorities should monitor risks and guard against excessive exchange-rate volatility that could hurt the economy. "The outlook of the global economy is uncertain due to trade measures and geopolitical tensions, constraining the behavior of businesses and consumers," Kato said in the statement to the International Monetary and Financial Committee. Sign up here. The global economy is also facing long-term structural transformation such as innovation in artificial intelligence, climate change, and demographic shifts, he said, adding that failure to adapt to such changes could widen social disparity and cause political instability. "It is also essential to monitor risks that could trigger major adjustments in financial markets and to guard against excessive volatility or disorderly movements in exchange rates that could undermine economic and financial stability," he said. https://www.reuters.com/world/asia-pacific/japan-urges-vigilance-against-excessive-fx-volatility-2025-10-17/

2025-10-17 20:57

TSX ends down 1.2% at 30,108.48 For the week, the index adds 0.9% Materials group falls 6% as gold retreats from record high Consumer staples sector rises 1.6% TORONTO, Oct 17 (Reuters) - Canada's main stock index gave back much of its weekly gain on Friday as gold prices fell and investors took profits in high-flying metal mining shares. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 350.32 points, or 1.2%, at 30,108.48. For the week, the index was up 0.9%. Sign up here. "It's safe to say that most of the blame for this would be on the pullback we had in precious metals," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "We're seeing a case where people are taking money out of their winners. And precious metals and mining stocks have been massive winners." The materials group (.GSPTTMT) , opens new tab, which includes fertilizer companies and metal mining shares, fell 6%, its biggest decline since April 4. The price of gold , a traditional hedge against uncertainty, pulled back from a record high as fears eased of an escalating trade war between the U.S. and China. Gold was down 2.2%. Heavily weighted financials (.SPTTFS) , opens new tab dipped 0.2% and energy (.SPTTEN) , opens new tab was down 0.3%. The price of oil clawed back a small part of its weekly decline, settling 0.1% higher at $57.54 a barrel. Consumer staples (.GSPTTCS) , opens new tab was a bright spot, adding 1.6%, with food processing company Canada Packers Inc (CPKR.TO) , opens new tab up 7.2%. The interest rate-sensitive real estate sector rose 0.8% as the Canadian 10-year yield touched its lowest level since April 30 at 3.062%. The Bank of Canada will be putting more emphasis on potential risks when it decides what to do about interest rates later this month even as it tries to be more forward-looking, Governor Tiff Macklem said. https://www.reuters.com/business/tsx-futures-fall-banking-jitters-spread-us-2025-10-17/

2025-10-17 20:50

Oct 17 (Reuters) - A New York judge who last month confirmed the validity , opens new tab of defaulted Venezuelan bonds ruled on Friday that Venezuela's state oil firm PDVSA must pay $2.86 billion to the bondholders, according to a court filing. The bonds are collateralized with equity in Citgo, PDVSA's Houston-based refining arm. The decision from the Southern District of New York has been long expected by creditors aiming to cash compensation from debt defaults, but is expected to be challenged by Venezuela. Sign up here. https://www.reuters.com/legal/legalindustry/new-york-judge-says-venezuelas-pdvsa-must-pay-286-billion-bondholders-2025-10-17/