Latest news with #InstituteofInternationalFinance
Time of India
7 days ago
- Business
- Time of India
Global markets on edge as U.S. debt skyrockets — contagion threat looms, says Institute of Finance
As America's debt load increases, the effects will not just be felt in the United States but will have a global impact, as per a report. The Institute of International Finance (IIF) has highlighted that borrowing costs in some countries like the US create volatility in Treasury bonds that has a ripple effect in other debt, as per Fortune. US Borrowing Ripple Effects Felt Worldwide IIF economists cautioned that 'The implications of rising U.S. debt levels are not limited to the domestic economy; they are also likely to trigger significant contagion and spillover effects across global bond markets ,' quoted Fortune. ALSO READ: Jensen Huang to offload $800 million in Nvidia stock — is the AI king sensing a storm ahead? Major Economies Move in Sync According to the report, IIF's economists have highlighted that, there has been a pattern of sovereign yields moving together, particularly in the United States, United Kingdom, Germany and France, 'reflecting the deep interconnections among these economies through trade and capital markets." Emerging Markets Are Most at Risk IIF also cautioned that the consequences of America's growing debt might be particularly harsh for emerging economies, which are already struggling with more restricted access to foreign capital, according to the report. Live Events ALSO READ: Italy's Mount Etna volcano erupts, triggering aviation alert as tourists flee for their lives — 10 key points The economists wrote that, 'With the U.S. and Euro Area accounting for over 60% of global cross-border debt portfolios, emerging markets and developing countries represent less than 7%—with many individual countries accounting for only a fraction of a percent,' as quoted by Fortune. US Budget Concerns Add to the Fear Concerns about the US debt have increased recently because the Republican budget bill moving through Congress is projected to add trillions to the budget deficit in the coming years, as per the report. FAQs Why does US debt matter to other countries? Because global financial markets are connected, the changes in US borrowing costs can influence rates in other nations. Which countries are most affected? Major economies like the US, Germany, and France are closely linked, but emerging markets may suffer the most.
Techday NZ
19-05-2025
- Business
- Techday NZ
MirrorWeb launches Sentinel to cut false compliance alerts by 90%
MirrorWeb has released Sentinel, a communications supervision solution designed to address the challenge of rising compliance alerts fuelled by digital communication platforms. The increasing use of tools such as Teams, Slack, WhatsApp, LinkedIn and iMessage has led to a surge in data volumes that compliance teams must monitor. According to figures from the Institute of International Finance, 75% of financial firms experienced a 50% increase in compliance alerts during the past year. This overload has created concerns for compliance officers, with 67% reporting that they fear missing critical risks, which could result in fines from regulators. The financial sector has already faced penalties for lapses in compliance, as highlighted when the SEC fined JPMorgan Chase USD $125 million last August for inadequate management of communications compliance. Sentinel, MirrorWeb's newly launched platform, aims to help organisations reduce the number of false positive alerts generated by legacy monitoring systems. In product testing, the company reports reducing such irrelevant alerts by up to 90%. The solution is built using natural language processing and intelligent risk scoring to highlight genuinely risky communications, rather than relying on basic keyword matching. This approach enables the system to assess the intent and context behind messages, offering what MirrorWeb describes as a more accurate identification of potential compliance risks. Key features highlighted for Sentinel include intelligent risk scoring, a pre-configured scenario library, comprehensive conversation capture, audit-ready reporting, and security features designed with privacy in mind. The risk scoring function analyses communications for intent, sentiment, and likely impact, allowing teams to focus resources where they matter most. The scenario library covers over 110 scenarios across eight risk categories, while the conversation capture function records entire threads, including message edits and deletions, to provide investigators with full context. Every alert flagged by Sentinel is accompanied by reasoning that references specific policy requirements. This is intended to help compliance professionals prepare for regulatory audits and inquiries. Security measures are also emphasised; all communications data is encrypted, not used to further train AI models, and is managed under standards such as SOC 2 and ISO 27001. Jamie Hoyle, Vice President of Product at MirrorWeb, said, "Compliance has evolved beyond just ticking boxes; it's about making informed decisions that safeguard the business. Sentinel helps customers cut through the noise, focusing on real risks - the needles in the expanding data haystack. We have worked with our customers to develop innovations that meet their needs and address today's most pressing compliance challenges." "Our Risk Scoring system and comprehensive Scenarios Library minimise the burden of false positive alerts, providing compliance professionals with the clarity and confidence to efficiently manage today's spiraling communication risks." As supervised communication channels become ever more pervasive in regulated industries, companies face mounting regulatory scrutiny. Tools such as Sentinel are positioned to support compliance efforts by focusing investigative attention on genuinely high-risk content and offering audit-ready data for regulatory review.
Axios
16-05-2025
- Business
- Axios
How Trump's China attitude is similar to Biden's
In most policy areas, the Trump administration is seeking sharp 180-degree turns from Biden-era policy. But there is one quiet way Treasury Secretary Scott Bessent is picking up where his predecessor left off: urging China to reset its economy. Why it matters: Behind the Trump administration's volatile tariff policy is the same frustration that simmered among Biden-era economic officials — and a continued push to get the nation to change. For too long, American officials believe, China has been exporting its way to growth, swamping the world with its goods in ways that have harmed domestic industries. What they're saying:"Chinese goods are consumed in China, and then they export the excess to the rest of the world," Bessent told CNBC this week. Last month, Bessent said that the world's second-largest economy was "built on exporting its way out of its economic troubles." "China needs to change. The country knows it needs to change. Everyone knows it needs to change. And we want to help it change because we need rebalancing, too," Bessent said in a speech at the Institute of International Finance. The big picture: In the past two decades, China's economic growth has largely been powered by its manufacturing might. But domestic consumption of those manufactured goods is sluggish: Its population has a significantly higher savings rate than much of the rest of the world, a result of the nation's lackluster social safety net. That dynamic has worsened since the pandemic and China's property crisis. Its reliance on global exports has sparked more efforts, especially from the U.S. and Europe, to choke off subsidized goods to try to shield their own industries. Flashback: The Biden administration was adamant that China needed to reduce subsidies for heavy industry and encourage domestic demand. "I am particularly worried about how China's enduring macroeconomic imbalances ... will lead to significant risk to workers and businesses in the United States and the rest of the world," former Treasury Secretary Janet Yellen said in a speech in Beijing this time last year. "China is now simply too large for the rest of the world to absorb this enormous capacity." Yellen said that China could take steps to "boost demand ... to see a larger share of GDP approved to households to bolster their income." Yes, but: The Biden administration used more narrowly targeted tariffs — focused on strategically significant industries like electric cars, semiconductors, and solar cells — to try to change Chinese behavior. The Trump administration is applying tariffs across the board. The intrigue: Bessent said this week that the previous 145% tariff rate on Chinese goods meant that those exports originally intended for the U.S. were "going to leak to the rest of the world."
South China Morning Post
10-05-2025
- Business
- South China Morning Post
World will need to borrow its way out of Trump's tariff mess
While US President Donald Trump's tariff wars might be laughably simplistic in their aim of balancing world trade, there is nothing amusing about the impact they are likely to have on the global economy. Advertisement The world appears to have not fully taken this on board yet. There has been little apparent awareness, for example, in market movements of the looming systemic financial threats that could arise from growing debt. This is especially so in the United States, which is dependent on foreign capital inflows to finance its trade and current account deficits. The likely impact of Trump's tariffs and other trade measures is being shrugged off by some as being hypothetical at this stage. Meanwhile, the potential impact on finance and banking systems is even less regarded or understood. This applies not only to intangible – and admittedly not readily quantifiable – factors such as the effect on confidence, consumption and investment but also to the more measurable and potentially critical impact upon debt in an already over-indebted world . All these aspects could come together in an economic 'perfect storm'. The global debt mountain has been growing for years, rather like a volcano pushing upwards as molten lava accumulates beneath the Earth's surface, ready to erupt with lethal force. Trump's tariffs and trade wars could be the precipitating factor, as the latest Global Debt Monitor from the Institute of International Finance (IIF) reveals. Advertisement
Iraqi News
07-05-2025
- Business
- Iraqi News
In unprecedented growth, global debt exceeds $324 trillion
Follow-up - INA Global debt increased by approximately $7.5 trillion during the first quarter of this year, exceeding $324 trillion for the first time. Western media reported that the Institute of International Finance confirmed that Germany, China, and France were the most significant contributors to the rise in global debt, while debt levels declined in Turkey, Canada, and the UAE. The Institute stated in its periodic report that "the decline in the value of the dollar against the major currencies of the United States' trading partners partially contributed to the rise in the dollar value of debt, but the increase recorded in the first quarter is more than four times the quarterly average of $1.7 trillion since the end of 2022." This comes at a time when the debt-to-GDP ratio has been declining relatively slowly globally, settling at more than 325%, while this ratio has reached a record high of 245% in emerging markets. The International Institute indicated that total debt in emerging markets increased by more than $3.5 trillion during the first quarter of this year, reaching a record high of more than $106 trillion.
