News in Brief
IMF warns on geopolitical fragmentation
Reuters – Rising geopolitical tensions and the resulting fragmentation of the global economy could increase financial stability risks, reducing cross-border investments, asset prices, payment systems and banks’ ability to lend, the International Monetary Fund said on Wednesday.
The IMF has long warned of increased costs, economic friction and GDP output losses associated with the global economy fragmenting into geopolitical blocs, with U.S.-led democracies on one side and China and other autocratic states on another. This can lead to competing technology systems and reduced trade.
Oil prices stable
CNBC – Oil prices held broadly stable on Wednesday, as the market weighed worsening economic prospects against expectations of U.S. crude inventory declines and plans by OPEC+ producers to reduce output.
Brent crude futures inched down 15 cents, or 0.18%, to $84.79 a barrel by 1350 GMT. West Texas Intermediate U.S. crude was 19 cents, or 0.24%, lower at $80.52 a barrel.
EU deal on Chips Act
Reuters – EU countries and lawmakers are likely to clinch a deal on a multi-billion euro plan to boost the bloc’s semiconductor industry on April 18, sources with direct knowledge of the matter said on Wednesday.
The European Commission announced the Chips Act last year in a bid to cut EU reliance on U.S. and Asian semiconductors following global supply chain problems that hurt European businesses from carmakers to manufacturers.