WASHINGTON (Reuters) – The executive board of the International Monetary Fund on Friday approved the second review of Ethiopia’s current financing program, the fund said, paving the way for a disbursement of about $250 million.

The East African nation struck the four-year, $3.4 billion program deal last July, after it undertook far-reaching reforms including the floatation of its birr currency, to enable it to try to put its debt restructuring back on track.

“The authorities continue their efforts to restore debt sustainability and are taking steps to secure a debt treatment. The progress made on debt restructuring negotiations under the Common Framework is welcome,” the IMF said in a statement.

“The financing assurances received, and adjustment efforts made are consistent with IMF policy requirements and program parameters.”

The Fund’s staff and the government reached agreement on the second review in late November.

The IMF has assessed that Ethiopia’s economy has fared better than expected under the reform program, with projected surge in inflationary pressure failing to materialise and hard currency reserves rising faster than the envisaged rate.

After unusually fast reviews of Ethiopia’s programme that were aimed at closely monitoring the impact of the reforms, the IMF said in November it would switch to the conventional six-month review schedule.

The IMF’s role in Ethiopia’s debt overhaul has come under criticism from some quarters, including from World Bank staff, who questioned the conclusions reached by the Fund’s debt sustainability assessment in an internal document last year.

Investing.com — President-elect Donald Trump is unlikely to provide detailed clues on his policy agenda at his inauguration on Monday, but Macquarie outlines three topics that could potentially be discussed during Trump’s speech that would likely be market moving.

“Attention will turn to the inauguration on Monday, which coincides with a Federal holiday — Martin Luther King Jr. Day. We can’t help but think that some topics that Trump will touch upon on Monday — and what Trump says (or doesn’t say about them) could be market-moving,” Macquarie analysts said in a note. 

While Trump isn’t expected to provide detailed information on policy as that might risk “restricting Trump’s room for negotiations with Congress and foreign counterparts later,” they added. Still, testimonies of cabinet-designees Scott Bessent and Marco Rubio offer a rough guide, the analysts said, flagging three topics that could come up during the speech including deficits and defense, immigration, and energy. 

1. Deficits and Defense 

Trump may discuss increased defense spending, potentially calling for NATO allies to spend 4-5% of GDP on defense, up from NATO’s current 2% guideline. Without new sources of revenue, higher defense spending imply higher deficits in the U.S. and abroad, potentially pushing Treasury and global sovereign yields higher, the analysts said.

If Trump, however, makes credible promises about cutting the U.S. deficit to 3% of GDP, as suggested by Treasury Secretary-designate Scott Bessent, it could offset these concerns. Trump may emphasize “pro-growth” policies and the use of AI to reduce government expenditures as ways to address the deficit.

2. Immigration

Trump’s immigration agenda, including plans to “seal the southern border” and implement “the largest deportation program in American history,” could spark renewed inflation worries, Macquarie warns. Trump has previously threatened to reinstate a travel ban and end birthright citizenship. The analysts warn that “this kind of rhetoric and promises of associated executive orders on Inauguration Day could also push yields higher.”

3. Energy and Russia-Ukraine

Trump’s approach to the Russia-Ukraine conflict could impact both currency and commodity markets. If Trump  reiterates a “concession and compromise” approach, as hinted by Secretary of State-designate Marco Rubio, it could give the EUR/USD a boost.

“It is important for everyone to be realistic,” Rubio told the the Foreign Relations Committee on Jan.15. “There will have to be concessions made by the Russian Federation, but also by the Ukrainians.” 

If Trump, however, stresses the need for more sanctions on Russia, then oil prices could likely climb higher. On the domestic energy policy, should Trump promise to increase domestic fossil fuel production and roll back clean energy initiatives this could have mixed effects on oil prices, depending on the relative elasticity of demand and supply, Macquarie said.

The topics that Trump chooses to highlight and the tone he adopts could significantly influence market sentiment, the analysts suggested.

“[T]he topics that are touched upon, and the tone used, could signal near-term priorities, which could be pounced on by traders to inform market direction,” they added.

(Reuters) – The U.S. Securities and Exchange Commission on Friday said Digital Currency Group Inc. and the CEO of its now-defunct subsidiary Genesis Global Capital LLC have agreed to pay a combined $38.5 million in civil penalties to settle charges they misled investors about Genesis’s financial condition.

Regulators found that DCG and Genesis chief Soichoro Moro downplayed the impact of a mid-2022 default by one of its largest borrowers, Three Arrow Capital, the SEC said in a statement.

Neither the firm nor Moro admitted or denied the SEC’s findings. Lawyers for both did not respond immediately to requests for comment.

The SEC said Moro made false or misleading statements on Twitter, misleadingly characterizing Genesis’s balance sheet as strong. Other executives retweeted some of those statements.

By Aditi Shah and Nandan Mandayam

NEW DELHI (Reuters) -Hyundai , Maruti Suzuki and Tata Motors (NYSE:TTM) used the India auto show to unveil ambitious plans to expand their electric vehicle charging network to address the issues that are putting customers off making the switch.

The five-day auto show in New Delhi starting on Friday saw carmakers show off their new EVs and India’s Prime Minister Narendra Modi make a case for more investment in the world’s third-biggest market, where automakers are desperately trying to increase sales and where Tesla (NASDAQ:TSLA) has long-delayed its plans to enter.

Fuel-guzzling cars still dominate India’s roads, with EV sales rising, but still accounting for just 2.5% of annual sales.

Maruti Suzuki on Friday announced plans to install fast charging points in India’s top 100 cities – one every 5-10 kilometres (3.1-6.2 miles) – and consider launching a battery rental service, while Tata Motors and Hyundai (OTC:HYMTF) said they will set up 500 and 600 public chargers, respectively.

Maruti also announced plans to expand the charging network in cities and provide roadside assistance all over India if a battery runs out.

Anxiety over batteries draining without a charging spot nearby is a big issue for customers in the country.

“We will leverage our vast network to provide fast charging support,” Maruti CEO Hisashi Takeuchi said at the show, where it also launched its first EV – the e Vitara SUV.

Maruti is also considering a battery rental service to address what many view as a major obstacle to EV adoption in India.

The move comes after India’s Tata Motors last year started luring consumers with free charging and steep discounts, while rival MG Motor also launched a battery rental plan.

At the New Delhi auto show, electric vehicles will be centre stage, with models from Vietnamese entrant Vinfast on display, alongside domestic brands Maruti and Mahindra & Mahindra (NS:MAHM), as well as global rivals BYD (SZ:002594), Toyota (NYSE:TM) and Hyundai.

Modi courted investors by saying the government was willing to provide support for companies seeking to expand in the nation.

“This is the right time for you for a large investment in this sector,” he said.

India’s auto industry, which grew by about 12% last year, will expand further as a result of factors including its large youth population and rapid urbanisation, Modi said.

But there have been challenges. India plans to expand EV incentives to automakers and relax its policy which was originally designed following lobbying by Tesla, which has still not entered the market, Reuters reported in November.

(Reuters) – The Vanguard Group has agreed to pay $106.4 million to settle U.S. Securities and Exchange Commission (SEC) charges over misleading statements related to capital gains distributions and tax consequences for retail investors, the regulator said on Friday.

The SEC found that retail investors in certain Vanguard target retirement funds faced higher tax liabilities and were deprived of potential growth in their investment after Vanguard failed to make fulsome disclosures to investors, according to the agency’s statement.

“Materially accurate information about capital gains and tax implications is critical to investors saving for their retirements,” Corey Schuster, Chief of the Division of Enforcement’s Asset Management Unit, said in the statement.

Counsel for the firm, which did not admit or deny the SEC’s charges, did not respond immediately to request for comment.

The settlement resolves the SEC’s probe along with parallel investigations by the New York and New Jersey Attorneys General and Connecticut Department of Banking.

By Marcela Ayres

BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad said on Friday that high interest rates are poised to have a much stronger effect on inflation than many expect, dismissing fears that fiscal challenges could undermine the effectiveness of monetary policy.

“I don’t believe in fiscal dominance at this moment,” Haddad told CNN Brasil, referring to a scenario in which central bank rate hikes drive up government debt servicing costs, worsen fiscal conditions, and deteriorate market expectations, ultimately fueling inflation instead of containing it.

“I believe monetary policy will have an impact on inflation,” Haddad said. “And fiscal policy needs to be more persistent.”

Amid stronger-than-expected economic growth and a sharp weakening of the Brazilian currency, driven by global uncertainties as well as local fiscal concerns, the central bank signaled in December that it would implement two additional 100 basis-point rate hikes by March.

This would push the benchmark interest rate to 14.25%, its highest level in more than eight years.

Regarding the currency depreciation, Haddad stressed that Brazil operates under a floating exchange rate system but said he considered that “anything above 5.70 reais per dollar is expensive considering the country’s economic fundamentals.”

The Brazilian real was trading at around 6.05 per U.S. dollar on Friday, but it had weakened to nearly 6.30 at the end of last year.

Haddad also said that President Luiz Inacio Lula da Silva’s pledge to raise the income tax exemption threshold to 5,000 reais ($825.33) would hinge on introducing a minimum tax on all income earned by wealthy individuals.

($1 = 6.0582 reais)

WASHINGTON (Reuters) – The U.S. on Friday imposed sanctions on a Yemen-based financial institution that Washington accused of financially supporting the Houthis, as President Joe Biden’s administration sought to further pressure the militant group before Biden leaves office.

The U.S. Treasury Department in a statement said it imposed sanctions on Yemen Kuwait Bank, accusing it of helping the Houthis exploit the Yemeni banking sector to launder money and transfer funds to allies, including Lebanon’s Hezbollah.

The Iran-backed Houthis have carried out more than 100 attacks on ships since November 2023. They have sunk two vessels, seized another and killed at least four seafarers. The intensity of the attacks has disrupted global shipping and prompted route changes.

The attacks have disrupted international commerce, forcing some ships to take the long route around southern Africa rather than the Suez Canal, leading to increases in insurance rates, delivery costs and time that stoked global inflation fears.

The Houthis seized power in Yemen in late 2014 and control most parts of the country including the capital Sanaa. They have also launched missiles and drones towards Israel, hundreds of kilometres to the north. Israel has responded by striking Houthi areas on several occasions. Last week Israeli warplanes bombed two ports and a power station.

The U.S. alongside Britain launched a multinational operation in December 2023 to safeguard commerce in the Red Sea, and has repeatedly conducted air strikes on Houthi strongholds targeting weapons storage facilities.

Biden’s action, ahead of the inauguration on Monday of President-elect Donald Trump, freezes any of Yemen Kuwait Bank’s U.S. assets and generally bars Americans from dealing with it. Those that engage in certain transactions with it also risk being hit with U.S. sanctions.

By Doina Chiacu, Michael Martina and Yukun Zhang

WASHINGTON (Reuters) -U.S. President-elect Donald Trump and Chinese President Xi Jinping discussed issues including TikTok, trade and Taiwan in a phone call on Friday, just days before Trump takes office again promising tariffs that could ratchet up tensions between the world’s two biggest economies.

Both leaders were upbeat about the call, with Trump calling it “a very good one” and Xi saying he and Trump both hoped for a positive start to U.S.-China relations, according to Chinese state broadcaster CCTV.

It was the first known phone call between the pair after Trump’s election in November.

The U.S. and China are embroiled in an array of diplomatic and economic disagreements, including an accelerating technological and military rivalry and bitter trade disputes. Marco Rubio, Trump’s nominee to be his secretary of state, has defined China as the gravest threat facing the U.S. and warned about the risks of possible military conflict between the two countries.

The call came shortly before U.S. Supreme Court on Friday announced a ruling upholding a law that mandates TikTok owner ByteDance divest TikTok’s U.S. assets by Sunday to a non-Chinese buyer, or be banned on national security concerns.

“The call was a very good one for both China and the U.S.A. It is my expectation that we will solve many problems together, and starting immediately. We discussed balancing Trade, Fentanyl, TikTok, and many other subjects,” Trump wrote on his social media platform.

“President Xi and I will do everything possible to make the World more peaceful and safe!”

Xi raised China’s concerns about Taiwan, which Beijing maintains is part of its territory, and said he hoped the U.S. would treat the matter with great care.

“The Taiwan issue concerns China’s national sovereignty and territorial integrity, and he hopes the U.S. side will handle it with caution,” he said according to Chinese state television.

Xi said the United States and China can have their differences but must respect each other’s core interests, and that trade relations can be mutually beneficial without confrontation and conflict, comments similar to those he made during Trump’s first term.

The Chinese readout of the call said the two leaders agreed to set up a “channel of strategic communication to keep in regular touch on major issues of shared interest.”

Trump offered strong support to Taiwan, including regularizing arms sales, in his first term. But during the campaign last year, he said Taiwan should pay the U.S. to be defended.

The Republican president-elect, who upended trade relations in his first term, is about to embark on an even more aggressive effort in his second term. He has pledged to impose an additional 10% tariff on Chinese goods unless Beijing does more to stop trafficking of the highly addictive narcotic fentanyl, and he threatened tariffs in excess of 60% on Chinese goods while on the campaign trail.

Trump said on Jan. 6 that he and Xi have been communicating through representatives, expressing optimism about their relationship.

Zack Cooper, a senior fellow at the American Enterprise Institute think tank, said whether Trump in coming days would permit TikTok to operate without a qualified divestment and whether he applied tariffs on China quickly or first began negotiations with Beijing would be early indicators of how confrontational his stance toward China would be.

Trump posted online later that his decision on TikTok would be coming soon, and that “everyone must respect” the Supreme Court ruling.

Breaking with tradition, Trump had invited Xi and other foreign leaders to his Jan. 20 inauguration, but China is sending Vice President Han Zheng, a move signaling Beijing’s desire to step up communication with the incoming administration.

Still, any “grand bargain” between the two sides over trade, Taiwan and other strategic issues would be difficult to reach, said Scott Kennedy, a China expert at the Center for Strategic and International Studies think tank in Washington.

“There’s an immense amount of distance between what one can imagine and actually achieving such an outcome. The interests between the U.S. and China on many of these issues are different and the views of key advisors to both are quite hawkish,” Kennedy said.

By Tom Wilson

(Reuters) – Advocates and holders of crypto will soon influence U.S. policy on the emerging technology after a slew of nominations and advisory appointments by President-elect Donald Trump, who takes office on Monday.

The crypto industry has spent years fighting lawsuits and enforcement actions by the U.S. government. It hopes the incoming Trump administration will mark a shift in policy.  

Political appointees will be vetted for potential conflicts. Some have committed to selling their interests.

The industry is hosting a sold-out black tie ball in Washington on Friday, with tickets ranging from $2,500 to $10,000. David Sacks, Trump’s artificial intelligence and crypto czar, is scheduled to attend.

Below are some facts on the crypto positions of key members of the incoming administration and Trump’s inner circle.

SCOTT BESSENT

A billionaire hedge fund manager, Trump’s pick to be Treasury Secretary has spoken favorably about crypto.    

“Crypto is about freedom and the crypto economy is here to stay,” he told Fox News in July. “I think everything is on the table with bitcoin.”

According to a financial disclosure filed last month, Bessent holds shares in a BlackRock (NYSE:BLK) bitcoin exchange-traded fund worth between $250,001 and $500,000. Bessent will divest his interests in the fund and other investments within 90 days of his confirmation, he wrote last week to the U.S. Treasury.

Bessent did not respond to a request for comment.

HOWARD LUTNICK

Trump’s choice for Secretary of Commerce is a vocal supporter of bitcoin.

Lutnick is CEO of New York brokerage firm Cantor Fitzgerald, which earns fees to manage billions of dollars’ worth of U.S. Treasuries for Tether, the company that issues the eponymous stablecoin.

“Do I own bitcoin? Of course I do,” Lutnick said at the Bitcoin 2024 conference in July. “Does Cantor Fitzgerald own bitcoin? A shedload of bitcoin.”

Lutnick did not respond to a request for comment.

ELON MUSK

The Tesla (NASDAQ:TSLA) chief and world’s richest man, chosen by Trump to oversee a government cost-cutting effort, the so-called Department of Government Efficiency, has long championed crypto including bitcoin and dogecoin.

His public comments and actions of his companies have in recent years influenced the price of bitcoin and dogecoin, a smaller token conceived as a joke during an earlier crypto bubble.

The acronym for Musk’s cost-cutting agency, DOGE, is a nod to dogecoin, which is now the world’s seventh-biggest crypto token based on its circulation of $4.5 billion, according to data provider CoinGecko.

In 2021 Tesla bought $1.5 billion of bitcoin, becoming one of the biggest companies to own crypto before selling most of its holdings. It held unspecified digital assets totaling $184 million in September 2024, a company financial report showed. 

Musk did not respond to a request for comment sent via Tesla on what crypto assets he may hold. 

VIVEK RAMASWAMY 

Set to work with Musk at DOGE, the former presidential candidate and entrepreneur is the founder of Strive Asset Management.

Strive, which said in September it managed over $1 billion in assets, last month filed to launch an exchange-traded fund that invests in corporate bonds for bitcoin investments. 

The company’s wealth management arm, launched in November, seeks to integrate bitcoin into Americans’ investment portfolios, Ramaswamy said in a press release.

In June 2023, Ramaswamy held $100,001 to $250,000 of bitcoin and $15,001 to $50,000 worth of the smaller token ether, according to a financial disclosure.

He did not respond to a request for comment.

DAVID SACKS 

A former PayPal (NASDAQ:PYPL) executive, Sacks was appointed White House artificial intelligence and crypto czar in December, tasked with developing a U.S. legal framework long sought by the crypto industry.

Sacks is a co-founder of venture capital firm Craft Ventures. The firm has invested in crypto firms including BitGo and Bitwise, its website shows. 

Sacks did not respond to requests for comment. 

STEVE WITKOFF

Trump’s Middle East envoy Steve Witkoff, a real estate tycoon and donor to the incoming president, founded crypto venture World Liberty Financial in November.

World Liberty, which sells a proprietary token, lists on its website Trump as among those entitled to a large share of any of the company’s revenues.

Witkoff did not respond to requests for comment.

ERIC TRUMP, DONALD TRUMP JR., BARRON TRUMP

Eric Trump told Reuters last year he was very involved in World Liberty, which he, his elder brother Don Jr. – seen as the most influential family member in the presidential transition – and younger half-brother Barron helped to form.

Eric told a bitcoin conference in December the technology was a “financial revolution,” and that his father would make the United States the crypto capital of the world.

JD (NASDAQ:JD) VANCE

U.S. Vice President-elect Vance held between $250,001 and $500,000 in bitcoin in August 2024, according to a financial disclosure.

The venture capital firm co-founded by Vance, Narya, has made investments in Strive, Ramaswamy’s asset management company, and video platform Rumble, its website shows. 

In November, Rumble said it would allocate its excess cash reserves to bitcoin. The company also received last year a $775 million investment from stablecoin firm Tether. 

Asked for comment on the crypto stances of Vance and Trump’s sons, Trump-Vance transition spokesperson Brian Hughes said – without providing evidence – that bureaucrats in Washington had sought to stifle innovation with more regulation and higher taxes.

“President Trump will deliver on his promise to encourage American leadership in crypto and other emerging technologies,” he said in a statement to Reuters.

PAUL ATKINS

Atkins, a lawyer and former top SEC official, is Trump’s choice to lead the Securities and Exchange Commission and has advocated for deregulation. He is expected to take a softer approach to crypto than current Chair Gary Gensler. 

Atkins is chief executive of Patomak Global Partners (NYSE:GLP), a consultancy. Patomak advises “cutting-edge crypto-native companies” and traditional financial firms on how to “leverage digital assets for growth,” its website says.

Atkins did not respond to a request for comment.

By David Ljunggren

(Reuters) – Canada’s ruling Liberal Party is looking for a new leader to replace Prime Minister Justin Trudeau, who announced on Jan. 6 he intended to step down.

The Liberal Party will pick a new chief on March 9.

Former Finance Minister Chrystia Freeland said on Friday she was running. Former Bank of Canada Governor Mark Carney announced his candidacy on Thursday.

Here are the top contenders.

FORMER FINANCE MINISTER CHRYSTIA FREELAND

Freeland, 56, was one of Trudeau’s closest allies during his nine years in power and had been serving as finance minister. Freeland unexpectedly resigned in December after an argument over spending and penned a letter attacking the prime minister’s leadership and his love of “political gimmicks.” 

Freeland, the most high-profile member of the government after Trudeau, had been finance minister since August 2020 and helped craft the government’s multi-billion-dollar social spending program to help fight the pandemic. 

She had previously been foreign minister and led the Canadian team that successfully renegotiated a trilateral trade deal with the United States and Mexico after then-President Donald Trump threatened to tear up the agreement. 

She joined the government in November 2015, first serving as trade minister. Before entering politics in 2013, Freeland worked as a journalist and in senior editorial roles with several media companies, including the Financial Times, the Globe and Mail, and Reuters, where she worked from 2010 to 2013. She has written two books.

FORMER BANK OF CANADA GOVERNOR MARK CARNEY

Carney, 59, is the only major candidate who is not part of the Trudeau government. Carney’s name has been circulating for years as a potential Liberal leader, largely thanks to his financial credentials. He launched his bid for the leadership on Thursday, casting himself as an outsider who was not part of Trudeau’s unpopular government and said he wanted to focus on the struggling economy.

Carney worked for Goldman Sachs before joining the Canadian finance ministry in 2004. He was named Bank of Canada governor in 2007 and quickly had to deal with the after-effects of the global financial crisis in 2008. In 2013, he took over as governor of the Bank of England, becoming the first person to head two major central banks. 

Carney forecast the economic damage that would result if Britain left the European Union, prompting attacks from pro-Brexit advocates. After leaving the bank in 2020, he was appointed United Nations special envoy for climate action and finance. He was vice chairman at Brookfield Asset Management (TSX:BAM) but has stepped down from the role to campaign.

HOUSE LEADER KARINA GOULD

Gould, 37, is seeking to become the first female leader of the Liberal Party. She entered parliament in 2015 and was named minister of democratic institutions in January 2017, becoming the youngest-ever female cabinet minister at age 29. Although she pushed through some voting reforms, her ministry was dissolved after the 2019 election and she took over the relatively low-key foreign aid ministry. She also became the first federal cabinet minister to take a maternity leave after giving birth in 2018. She became minister of families in 2021 and in 2023 was named the Liberals’ House of Commons leader.

Three other people have announced they intend to take part but they have little chance of winning. They are backbench legislators Chandra Arya and Jaime Battiste as well as former member of parliament Frank Baylis.