Markets are keenly monitoring the US debt-ceiling discussions as investors around the world wait to see if the world's largest economy is able to reach an agreement before the deadline next week.
Global stock markets were muted on Friday as US President Joe Biden and House speaker Kevin McCarthy continued talks to reach an agreement that would raise the government's $31.4 trillion debt ceiling for two years.
Earlier on Thursday, Mr Biden maintained that the US would not default on its debt after a series of economic reports indicated growing concerns about the repercussions of not reaching a deal.
Mr Biden said he and Mr McCarthy have had “several productive conversations”.
Asia's stock markets were cautiously higher on Friday, with Japan leading the gains, while the dollar dipped slightly, although it remained close to a two-month high.
The US dollar index, which hit a three-month high of 104.31 overnight, was at 104.05 at 1pm UAE time.
“Anxiety over the debt ceiling” remains the driving force for markets and even as a deal may be forthcoming, a sell-off in Treasuries continued overnight, said Edward Bell, senior director of market economics at Emirates NBD.
“A resolution to the US debt ceiling impasse looks to be nearing with the outline of a deal emerging overnight,” he said.
“The ceiling could reportedly be raised for two years along with a cap on overall government spending. Defence spending would still be permitted to increase next year.
“However, a full deal has still not been reached, with Moody’s raising the pressure on the US, saying that if the government missed an interest payment in mid-June, then the US would be at risk of losing its 'AAA' rating.”
Earlier in the week, rating agency Fitch said it had put America's “AAA” rating, its highest rank, on negative credit watch because of increasing political disputes around the country's debt limit.
The rating watch “reflects increased political partisanship that is hindering efforts to reach a resolution to raise or suspend the debt limit” with increasing concerns over a default, it said.
“We believe risks have risen that the debt limit will not be raised or suspended before the x-date [when the US Treasury exhausts its cash position and capacity for extraordinary measures without incurring new debt] and, consequently, that the government could begin to miss payments on some of its obligations,” it said.
While the debt ceiling talks continued on Thursday, and there was, again, some optimism, “no deal has been reached and the clock is ticking louder into the June 1st deadline”, said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
“The US Treasury’s cash balance fell below $50 billion on Wednesday and, as Janet Yellen warns so loudly, the US may not reach the mid-June safe zone, where the tax money will fall in, to avoid a default,” she said.
“If investors are not extremely worried about the debt ceiling talks, it’s because they know it’s just an unnecessary political theatre and that the debt ceiling will end up being raised, anyway,” Ms Ozkardeskaya said.
“But in the extreme event of a political accident, the consequences would be catastrophic. US and global stocks could dive more than 20 per cent and the US’s self-induced economic crisis would push the world economy into a deep recession by the end of the year.”
An actual breach of the US debt ceiling could cause “severe damage” to the US economy, research this month by the White House's Council of Economic Advisers found.
“If the US government were to default on its obligations – whether to creditors, contractors or citizens – the economy would quickly shift into reverse, with the depth of the losses a function of how long the breach lasted,” the council said.
“A protracted default would likely lead to severe damage to the economy, with job growth swinging from its current pace of robust gains to losses numbering in the millions.”
Meanwhile, Brookings Institution analysts Wendy Edelberg and Louise Sheiner also said that “worsening expectations regarding a possible default would make significant disruptions in financial markets increasingly probable” and that “such financial market disruptions would very likely be coupled with declines in the price of equities, a loss of consumer and business confidence, and a contraction in access to private credit markets”.
The%20specs
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LA LIGA FIXTURES
Thursday (All UAE kick-off times)
Sevilla v Real Betis (midnight)
Friday
Granada v Real Betis (9.30pm)
Valencia v Levante (midnight)
Saturday
Espanyol v Alaves (4pm)
Celta Vigo v Villarreal (7pm)
Leganes v Real Valladolid (9.30pm)
Mallorca v Barcelona (midnight)
Sunday
Atletic Bilbao v Atletico Madrid (4pm)
Real Madrid v Eibar (9.30pm)
Real Sociedad v Osasuna (midnight)
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
Director: M. Night Shyamalan
Rating: 5/5
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Things Heard & Seen
Directed by: Shari Springer Berman, Robert Pulcini
Starring: Amanda Seyfried, James Norton
2/5
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
The biog
Name: Atheja Ali Busaibah
Date of birth: 15 November, 1951
Favourite books: Ihsan Abdel Quddous books, such as “The Sun will Never Set”
Hobbies: Reading and writing poetry
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Tour de France 2017: Stage 5
Vittel - La Planche de Belles Filles, 160.5km
It is a shorter stage, but one that will lead to a brutal uphill finish. This is the third visit in six editions since it was introduced to the race in 2012. Reigning champion Chris Froome won that race.
Four tips to secure IoT networks
Mohammed Abukhater, vice president at FireEye in the Middle East, said:
- Keep device software up-to-date. Most come with basic operating system, so users should ensure that they always have the latest version
- Besides a strong password, use two-step authentication. There should be a second log-in step like adding a code sent to your mobile number
- Usually smart devices come with many unnecessary features. Users should lock those features that are not required or used frequently
- Always create a different guest network for visitors
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
MORE ON TURKEY'S SYRIA OFFENCE
Arrogate's winning run
1. Maiden Special Weight, Santa Anita Park, June 5, 2016
2. Allowance Optional Claiming, Santa Anita Park, June 24, 2016
3. Allowance Optional Claiming, Del Mar, August 4, 2016
4. Travers Stakes, Saratoga, August 27, 2016
5. Breeders' Cup Classic, Santa Anita Park, November 5, 2016
6. Pegasus World Cup, Gulfstream Park, January 28, 2017
7. Dubai World Cup, Meydan Racecourse, March 25, 2017
The specs
Engine: 8.0-litre, quad-turbo 16-cylinder
Transmission: 7-speed auto
0-100kmh 2.3 seconds
0-200kmh 5.5 seconds
0-300kmh 11.6 seconds
Power: 1500hp
Torque: 1600Nm
Price: Dh13,400,000
On sale: now
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
