Bloomberg Surveillance

‘Bond yields, bond yields, bond yields’ is how one IMF attendee described chatter in Bangkok.

At the last major summit, Scott Bessent worked hard to tag China as the cause of dangerous fault lines in the world economy. With the US Treasury chief absent from Bangkok this week, it was America and its allies in the spotlight.

The world’s financial elite wrapped up a week of meetings in Bangkok on Friday filled with warnings of an unbalanced AI boom, a prolonged energy shock and record debt piles.

Chancellor of the Exchequer John Healey’s plan to raise bank taxes may help ease Britain’s strained public finances, but risks an awkward difference of opinion with Bank of England Governor Andrew Bailey.

The energy shock is starting to spill across the US economy as businesses pass along rising costs, complicating the Federal Reserve’s task of stabilizing inflation.

German Chancellor Friedrich Merz expects the European Union to further water down emissions rules to extend sales of new fuel-burning cars beyond 2035, following a pact with France.

Bank Indonesia faces pressure to raise interest rates next week after MSCI Inc. warned it may reclassify the country’s stock market, according to analysts.

The International Monetary Fund expects the Bank of Japan to raise interest rates one more time toward the neutral rate, while stressing the need to remain flexible on subsequent steps amid heightened global uncertainty, according to its mission chief for the country.

UK Chancellor of the Exchequer John Healey is set to raise taxes on banks to fund cost-of-living support for voters and stabilize the public finances, according to people familiar with the matter. The move will likely involve increasing the bank surcharge that’s levied on top of the standard corporation tax rate, said the people. Bloomberg's Philip Aldrick reports from Bangkok where Healey has been attending International Monetary Fund meetings. (Source: Bloomberg)

South African Reserve Bank Governor Lesetja Kganyago said the rand has held up well despite the shock caused by the Iran war, reflecting more confidence in the country’s economic outlook.

Federal Reserve Chairman Kevin Warsh did nothing to dispel market expectations that the US central bank will hold interest rates steady when it meets at the end of the month.

Olli Rehn, Finnish Central Bank Governor and ECB Governing Council member, discusses his outlook for the eurozone. He speaks on the sidelines of the IMF-World Bank Annual Meetings in Bangkok. (Source: Bloomberg)

Federal Reserve Chairman Kevin Warsh said his task force on productivity and jobs will hold a field hearing in the San Francisco Bay Area next month.

Malaysia’s economic growth slowed but still exceeded expectations as the artificial intelligence boom continued to bolster exports and domestic demand remained resilient.

Britain’s economic output is far less energy-intensive than it once was.

French Finance Minister Roland Lescure said the current market turbulence is making political parties across the spectrum see the need for fiscal prudence, voicing optimism that his country’s parliament will back his budget.

India faces growing trade imbalances with China as Beijing’s non-tariff barriers continue to restrict access for Indian products, Finance Minister Nirmala Sitharaman said on Friday.

Bank of England Governor Andrew Bailey said there is little evidence yet of inflation becoming embedded in UK price and wage-setting.

The European Central Bank might have to raise borrowing costs again, according to Bundesbank President Joachim Nagel.

European Central Bank Governing Council member Olli Rehn said policymakers will have additional information at the final rate decision of the year, while suggesting the current policy approach is working.