Thailand’s sovereign bonds are beating their Asian peers on bets interest rates will be cut as anti-government protesters block roads and scare off tourists during the peak Chinese New Year holiday period.
The rand’s slump to a five-year low is souring investor confidence toward South Africa, complicating Finance Minister Pravin Gordhan’s efforts to cut the fiscal deficit as government borrowing costs rise.
Germany’s regulator balked last year when the European Banking Authority conducted stress tests on financial firms, objecting to the agency’s definition of capital and allowing one state-owned lender to withhold some results.
Treasury Secretary Jacob J. Lew will press European officials to follow the U.S. lead in adopting tougher banking regulations to ensure that American financial firms aren’t put at a competitive disadvantage.
Coming up in the global economy this week are a meeting of euro-area finance ministers, disposable income in Russia, German business confidence and U.S. retail sales. In Australia, the head of the central bank will comment on the Australian dollar, while a decision on interest rates is due from the Chilean central bank.