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IMF urges infrastructure investment to boost post-COVID growth By Reuters

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© Reuters. FILE PHOTO: International Monetary Fund logo is seen

By David Lawder

WASHINGTON (Reuters) – The International Monetary Fund on Monday said member governments should seize a low interest rate opportunity to invest in infrastructure to drive recovery from the coronavirus pandemic and a shift toward greener energy.

The IMF said in chapters from it fiscal monitor that its research shows public investment in infrastructure, including investments in health care systems, digital infrastructure and addressing climate change can pay back more than two to one in economic growth within two years.

The full Fiscal Monitor will be presented at the IMF and World Bank annual meetings, which get underway next week and will provide an updated assessment of the pandemic’s effect on the global economy.

The IMF said increasing public investment by 1% of GDP in advanced and developing economies would grow their GDP by 2.7%, creating 7 million jobs directly, and between 20 million and 33 million jobs overall when considering the indirect macroeconomic effects.

“Even before the pandemic, global investment had been weak for over a decade, despite crumbling roads and bridges in some advanced economies and massive infrastructure needs for transportation, clean water, sanitation, and more in most emerging and developing economies,” IMF Fiscal Affairs Director Vitor Gaspar said in a blog post.

He added that “low interest rates globally also signal that the time is right to invest” despite the Fund’s frequent warnings about a massive buildup of debt in developing countries.

Some countries with tighter financing conditions will have to take a more gradual approach to scaling up infrastructure development, but the improved growth prospects could pay off if projects are well-managed and set the stage for future growth.

“Investment is now urgently required in sectors critical to controlling the pandemic, such as health care, schools, safe buildings, safe transportation, and digital infrastructure,” The IMF said in its report.

The Fund said public investment in infrastructure is feasible and can be delivered quickly if governments invest in maintenance of infrastructure, review and restart projects that were shelved at the start of the pandemic, speed up projects in the pipeline and plan immediately for a post-pandemic investments.

It said official aid for adaptation to climate change would pay back more than 100% in growth, and there is a need to double a currently planned $10 billion to adapt countries to climate change to around $25 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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U.S. screened over one million airline passengers Sunday for first time since March By Reuters

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© Reuters. Workers in protective gear walk on the tarmac at Oakland International Airport as authorities continue debarkation from the ship after 21 people on board have tested positive for the COVID-19 coronavirus in Oakland

By David Shepardson

WASHINGTON (Reuters) – The U.S. Transportation Security Administration (TSA) said it screened more than 1 million airline passengers on Sunday for the first time since mid-March.

The number, 1.03 million, is still about 60% lower than the same day last year, but is a dramatic rise from the collapse in air travel demand caused by the coronavirus pandemic. Screening fell to as little as 87,000 in a single day in April.

The previous high was 1.26 million screened on March 16.

U.S. airlines are collectively burning more than $5 billion in cash a month and have failed to date to convince Congress to approve a new $25 billion bailout that would have kept more than 32,000 workers on the payroll for another six months.

American Airlines (NASDAQ:) furloughed 19,000 workers, while United Airlines furloughed 13,000 workers.

Staff for the top Democrats and Republicans on the House and Senate committees overseeing airlines have been working to try to reach agreement on a potential standalone airline bill, but the airlines are not optimistic any bill will be approved before the Nov. 3 presidential election.

A previous airline payroll support program expired on Sept. 30. At some point, airlines may shift messaging to seeking new government funds to bring workers back.

Airlines for America, a trade group representing American Airlines, United, Delta Air Lines (NYSE:) and others have said passenger volumes are down about 64%, including 62% domestically and 79% internationally.

U.S. airlines are operating 48% fewer flights than a year ago and still have nearly one-third of their fleet idled, the group added.

The TSA statement on Monday also said it is adopting new measures to make security screening safer, including installing credential authentication devices at some checkpoints enabling passengers to insert IDs directly into a card reader.

New CT scanners at some checkpoints also often allow officers to check items without having to open a carry-on bag.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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More important for U.S. to get digital currency right than be first By Reuters

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© Reuters. FILE PHOTO: Senate’s Committee on Banking, Housing, and Urban Affairs hearing

(Reuters) – In any development of a cross-border digital currency, it is more important for the United States “to get it right than be first,” U.S. Federal Reserve Chair Jerome Powell said on Monday.

“We do think it’s more important to get it right than to be first and getting it right means that we not only look at the potential benefits of a CBDC, but also the potential risks, and also recognize the important trade offs that have to be thought through carefully,” Powell said in a panel discussion of digital payments hosted by the International Monetary Fund.

Powell said it is vital the Fed assess what impact a CBDC might have on a range of critical issues, including monetary policy, financial stability, cyber-security and preventing illicit activity.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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ECB’s Mersch warns against double counting as decision looms By Reuters

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© Reuters. Yves Mersch, Member of the Executive Board of ECB, speaks during an economics conference in Linz

FRANKFURT (Reuters) – The European Central Bank must avoid double counting information as it parses economic data, including the euro’s exchange rate, to prepare for next week’s policy decision amid a second wave of coronavirus infections, ECB board member Yves Mersch said on Monday.

“Looking ahead, in the current environment of elevated uncertainty the ECB Governing Council will assess incoming information very carefully, including developments in the exchange rate, while ensuring that this incoming information is only accounted for once in our assessment,” Mersch said without elaborating.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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