14 May 2024 – The Fund Society

Argentina’s central bank lowers interest rates as inflation cools

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UKSIF: More ambitious green policies could attract £100bn of inward investment to UK

More favourable domestic green policies and regulations that clarify the role of financial firms in helping to decarbonise and combat nature-loss could help shift up to £100bn in globally managed investments towards the UK, according to research released today (15 May). Investment Association launches guidance on FCA sustainability rules A survey of 100 financial services organisations, representing £1trn in annual turnover and over £200bn in UK green investments carried out by UKSIF, signalled sizeable support for stricter and clearer green policies and regulations. But the associ…

Top 10 Countries Most in Debt to the IMF

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May 14, 2024 Graphics/Design:

See this visualization first on the Voronoi app.

Top 10 Countries Most in Debt to the IMF

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Established in 1944, the International Monetary Fund (IMF) supports countries’ economic growth by providing financial aid and guidance on policies to enhance stability, productivity, and job opportunities.

Countries seek loans from the IMF to address economic crises, stabilize their currencies, implement structural reforms, and alleviate balance of payments difficulties.

In this graphic, we visualize the 10 countries most indebted to the fund.

Methodology

We compiled this ranking using the International Monetary Fund’s data on Total IMF Credit Outstanding. We selected the latest debt data for each country, accurate as of April 29, 2024.

Argentina Tops the Rank

Argentina’s debt to the IMF is equivalent to 5.3% of the country’s GDP. In total, the country owns more than $32 billion.

CountryIMF Credit Outstanding ($B)GDP ($B, 2024)IMF Debt as % of GDP 🇦🇷 Argentina32604.35.3 🇪🇬 Egypt11347.63.1 🇺🇦 Ukraine9188.94.7 🇵🇰 Pakistan7374.71.8 🇪🇨 Ecuador6121.64.9 🇨🇴 Colombia3386.10.8 🇦🇴 Angola392.13.2 🇰🇪 Kenya3104.02.8 🇬🇭 Ghana275.22.6 🇨🇮 Ivory Coast286.92.3

A G20 member and major grain exporter, the country’s history of debt trouble dates back to the late 1890s when it defaulted after contracting debts to modernize the capital, Buenos Aires. It has already been bailed out over 20 times in the last six decades by the IMF.

Five of the 10 most indebted countries are in Africa, while three are in South America.

The only European country on our list, Ukraine has relied on international support amidst the conflict with Russia. It is estimated that Russia’s full-scale invasion of the country caused the loss of a third of the country’s economy. The country owes $9 billion to the IMF.

In total, almost 100 countries owe money to the IMF, and the grand total of all of these debts is $111 billion. The above countries (top 10) account for about 69% of these debts.

Stocks making the biggest moves after hours: Boot Barn, Nextracker, dLocal and more

Here’s everything to expect from Wednesday’s key report on inflation

Prices for all items in April are projected to show a 0.4% gain on the month, the same as in March, though the annual rate is expected to edge lower to 3.4%. On the important core measure that excludes food and energy, the respective projections are 0.3%, lower than March’s 0.4% reading, and 3.6%, down from 3.8%. Wall Street will pore through Wednesday’s report looking for signs of how much longer the elevated inflation conditions will continue. One key focus will be on housing. People shop in the food section of a retail store in Rosemead, California, Jan. 19, 2024. Frederic J. Brown | AFP | Getty Images

Inflation trends may have gotten a little less dreary in April, though they are still likely to keep the Federal Reserve uncomfortable enough to stay on pause with interest rates.

The consumer price index, a broad measure of the cost of goods and services in the marketplace, is expected to show another increase for the month, though the annual inflation rate is projected to come down slightly, according to Dow Jones consensus forecasts.

Prices for all items are projected to show a 0.4% gain on the month, the same as in March, though the annual rate is expected to edge lower to 3.4%, compared to the 3.5% reading in the previous month. On the important core measure that excludes food and energy, the respective projections are 0.3%, lower than March’s 0.4% gain, and 3.6%, which is down from 3.8%.

In remarks made Tuesday in Amsterdam, Fed Chair Jerome Powell expressed hope that inflation would decelerate through the year but acknowledged the slow progress and provided further direction that rates aren’t likely to move anytime soon.

“I expect that inflation will move back down on a monthly basis to levels that were more like the lower readings we were having last year,” he told attendees at a banking conference. “I would say my confidence in that is not as high as it was, having seen these readings in the first three months of the year. So we’re just going to have to see where the inflation data fall out.”

Wholesale gauge brings bad news

Keeping with the higher-than-expected readings in the first quarter, the producer price index rose 0.5% in April, nearly double the expectation to kick

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Visualizing America’s Average Retirement Savings, by Age

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May 14, 2024 Article/Editing:

See this visualization first on the Voronoi app.

Visualizing America’s Average Retirement Savings, by Age

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Painting a concerning picture, the median retirement savings for Americans stands at a mere $87,000, a figure far lower than what is needed for a comfortable nest egg.

This savings gap—the amount people have actually saved versus what they believe is needed for retirement—is significantly rising. In fact, a recent survey from Northwestern Mutual reveals that $1.46 million is the ideal savings target for retirement, up from $1.27 million last year.

This graphic shows the retirement savings that Americans currently hold, based on data from the Federal Reserve’s 2022 Survey of Consumer Finances.

Savings for Retirement Fall Short

Below, we show the average and median retirement savings in the U.S. by age group:

Age GroupAverage Retirement SavingsMedian Retirement Savings Under 35$49,130$18,880 35-44$141,520$45,000 45-54$313,220$115,000 55-64$537,560$185,000 65-74$609,230$200,000 All families$333,940$87,000

For people aged 35 and under, the median savings were $18,880, while this amount increased to $200,000 for those aged 65 to 74.

At current rates, this means that older generations are living on a mere $10,000 per year in retirement based on these savings alone. Given this shortfall, Americans will need to increasingly rely on Social Security benefits to make ends meet. In fact, it’s estimated that state and federal governments will need $1.4 trillion for public assistance costs by 2040.

One reason behind declining retirement savings is the steep drop in employment-sponsored pension plans over the last several decades. As of 2022, there was $37.8 trillion held in U.S. pension plans and Individual Retirement Accounts (IRAs). Of these, employment-sponsored plans comprised a substantial 70% share of these assets.

However, for many Americans without employer-sponsored plans, saving for retirement has become an increasingly uphill battle. In fact, a separate survey shows that just 58% of Americans aged 55 to 64 have retirement accounts, underscoring the growing challenges faced in preparing for retirement.

Among the most common retirement planning mistakes are

IRAs Money pension plans retirement planning retirement savings rising cost of living

Dairy me, now the CFTC wants a piece of the $191mn Cowzi scheme

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Anglo’s drastic plan to fend off BHP

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Stocks making the biggest moves midday: AMC, GameStop, Sony, Planet Fitness and more

Check out the companies making headlines in midday trading: Meme stocks — Meme stocks roared for a second day with GameStop surging more than 65% and AMC popping over 70%. The latest trading frenzy in these names was triggered by the return of “Roaring Kitty,” who posted online for the first time in almost three years. AMC’s Tuesday rally came even after the movie theater said it completed a $250 million stock sale during Monday’s wild trading. Other meme names also traded sharply higher. Shares of one-time dominant smartphone maker BlackBerry popped 15%, while headphones manufacturer Koss shot up more than 40%. Alibaba — The Chinese technology company shed 7% after posting an 86% drop in net income from a year ago for its fiscal fourth quarter. Alibaba topped revenue expectations. Sony — U.S.-listed shares jumped 5.3% after quarterly revenue came in at 3.5 trillion yen, topping the consensus expectation of 2.89 trillion yen from analysts polled by LSEG. On the other hand, operating profits came in lower than analysts had penciled in. Vodafone — U.S. shares popped 5% after the U.K.-based telecommunications company posted full-year profit that beat expectations. On Holding — The shoe maker jumped 16% after first-quarter earnings came in well ahead of analysts’ expectations. The gain put shares on track for their best day since March 2023. United Airlines — The airline added 1% after sharing strong expectations for summer travel. Specifically, United said it should have its busiest Memorial Day period on record, with the number of travelers slated to increase 10% compared to a year ago. Newell Brands — The consumer goods stock rallied 4.7% on the heels of an upgrade to equal weight from underweight by Barclays. The firm said the business appears closer to normalizing following the pandemic pull-forward in demand. Roblox — The video game developer jumped 3.9%, providing some relief amid a tough month. Shares have fallen more than 9% in May, during which the company pulled back its forward guidance. Roth Capital downgraded the stock to neutral from buy on Tuesday. Boston Beer Company — Shares added 1% after the beer brewer was upgraded by Jefferies to buy from hold. The firm pointed to positive trends in flavored malt beverages and ready-to-drink cocktails sales, as well as Twisted Tea’s dominance in the rising hard teas sector. Planet

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Roaring Kitty’s meme stock investors can’t save AMC

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We are so back. That was the message meme stock investor “Roaring Kitty”, aka Keith Gill, tweeted on Sunday May 11. After a lengthy hiatus, the subsequent series of videos and images added up to coded, if not indecipherable, communication.

No prizes for guessing what followed. Shares of GameStop, the otherwise ordinary retailer that became meme stock fodder in 2021, more than tripled over Monday and Tuesday.

More interestingly, AMC Entertainment shares jumped from just $3 each to around $10. The cinema chain has struggled mightily post-pandemic. But it has also leaned into the meme stock phenomenon, creating the “Ape” avatar as its community symbol.

Most AMC observers are well aware that the company is headed for a major debt restructuring that will probably wipe out most of its existing equity value. Its share price peaked in 2021 at around $230. The face value of debt and lease obligations total more than $8bn. Last week its market cap was under $1bn. Trade publications have reported that creditors are beginning to organise as the company approaches a mountainous $3bn of maturities in 2026.

But why worry? AMC has been able to sell $3bn of stock since the start of 2021. That includes $250mn on Tuesday for $3.45 per share amid the irrational rally. At some point soon the music will stop, leaving AMC stranded. By then the story should not relate to any bankruptcy filing but why retail investors willingly ploughed in their own cash to forestall it for so long.

Meme stocks have begun to be understood as fundamentally a community. Any kinship formed apparently outweighs the near certainty of losing money. AMC, like some casino manager offering complimentary hotel rooms and buffet dinners for high rollers, created events to hook stock buyers.

The company’s actual securities filings are, unsurprisingly, far more sober. AMC wrote recently in its annual report that its “cash burn rates are not sustainable long-term” and that its only hope is for box office receipts to return to 2019 levels. This is unlikely. In 2023, total industry revenues were down more than 20 per cent from five years ago.

AMC lenders and bondholders will benefit from the cash raised from retail investors activated by social media output. But at some point they are going to want to be treated like the future owners of