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The International Monetary Fund (IMF) has issued a warning that emerging economies are facing a heightened risk of financial instability due to their increased reliance on market-based finance, particularly from hedge funds and investment funds. A cumulative $4tn flowed into emerging markets last year from outside the formal banking sector, which can bring benefits but also poses significant risks.The IMF's analysis suggests that this type of financing can be more volatile than traditional bank financing and is more likely to be withdrawn suddenly in times of financial stress. This can lead to abrupt retrenchments, intensify external financing pressures, raise borrowing costs, and trigger sharp currency depreciations, ultimately weighing on economic growth.The IMF highlights that some countries are already experiencing these challenges, particularly in the context of the war in the Middle East. Several emerging markets are experiencing a reversal of capital flows from non-resident non-bank investors, which can have a significant impact on their economies.The IMF also notes that hedge funds and mutual funds have the highest propensity to withdraw during market volatility, while pension funds and insurers tend to be more cautious. Additionally, the IMF warns about the growing flows of stablecoins into emerging economies, which can be vulnerable to wider fluctuations in cryptocurrency markets.The IMF's managing director, Kristalina Georgieva, warned that the conflict will lead to higher prices and slower growth, adding that even if the war were to stop today, there would be a lingering negative impact on the rest of the world.

The UK government announced a modest concession for millions of graduates with Plan 2 student loans: a cap on the interest rate at 6% starting 1 September 2026.The decision is presented as a safeguard against a possible surge in inflation linked to geopolitical tensions in the Middle East, rather than a full policy reversal.The 6% ceiling will apply both to undergraduate Plan 2 loans and to postgraduate Plan 3 loans taken out by borrowers in England and Wales.For many borrowers the cap trims the current 6.2% rate by 0.2 percentage points, meaning their debt will grow marginally slower; the repayment threshold of 9% of earnings above the annual limit remains unchanged.Interest rates are normally set each academic year using the Retail Price Index (RPI), which currently sits at 3.2% and is expected to rise – the March 2026 RPI is due on 22 April and analysts anticipate a figure above the February rate of 3.6%.Ministers say the cap “removes the risk of any temporary increase in inflation causing loan balances to compound at an unsustainable rate,” protecting borrowers from rates above 6%.Prime Minister Keir Starmer has pledged to review the student‑loan system, and speculation persists that more extensive reforms could be announced later in the year.The National Union of Students hailed the cap as “a huge win” but warned that without adjustments to the repayment threshold the relief will be limited.Financial planner Ian Futcher of Quilter added that the cap offers “reassurance but not relief,” emphasizing the need for broader changes to ease graduate finances.

Israel's newly approved $271 billion budget has sparked concerns over its implications for the occupied West Bank, with a significant portion allocated to settlement expansion and far-right ideological projects. The budget, the largest in Israel's history, was passed early on Monday from a fortified bunker, amid the ongoing conflict with Iran.The ruling coalition has bypassed legal frameworks to direct billions towards these goals, citing national security concerns. A key allocation is $129.5 million to the Ministry of Settlement and National Missions, which authorizes illegal Jewish-only settlements and outposts on Palestinian land.Finance Minister Bezalel Smotrich, a settler himself, has been granted sweeping powers over the occupied territory and has openly opposed the two-state solution. Prime Minister Benjamin Netanyahu has echoed this sentiment, stating there will be no Palestinian state west of the Jordan River.The budget also includes funds for projects such as building bypass roads through Palestinian towns, providing protection for illegal settlement outposts, and incorporating armed settlers into the state's civilian security apparatus. These moves are seen as entrenching the occupation and empowering far-right elements of Netanyahu's government.The allocation comes against a backdrop of surging violence by settlers and Israeli armed forces' raids on Palestinian communities across the West Bank, which have intensified since the onset of Israel's war on Gaza in October 2023. UN data shows nearly 3,000 attacks on Palestinians in the West Bank over the past two years.The budget's passage has highlighted divisions within the Israeli opposition, with Yair Lapid accusing rival parties of being more focused on criticizing his party than uniting against the governing coalition. Analysts warn that the spending bill will have severe long-term consequences, including further destabilizing the region and undermining any future viable Palestinian state.

Taybeh, a small hilltop town in the heart of the West Bank, is one of the oldest Christian communities in the world. After increasing attacks from Israeli settlers it now feels itself under siege and is fighting for its very existence.The town’s ancient Greek name was Ephraim where, according to the gospels, Jesus hid with his disciples from the Jewish religious hierarchy, the Sanhedrin, before making his final fateful trip to Jerusalem.A church was built here in the fifth century, and the entirely Christian community survived the crusaders, conquest by Salah ad-Din Yusuf ibn Ayyub or Saladin, the Ottoman empire, the British empire, and three Arab-Israeli wars, but its inhabitants say its long-term future is in question.There are four substantial Israeli settlements around Taybeh, and countless unofficial outposts have also sprung up on the steep hills overlooking the Jordan valley. They have been set up by messianic Jews who send their young people, the “hilltop youth”, to harass and intimidate local Palestinians in the surrounding countryside.The relentless land grabs and intimidation is a pattern repeated up and down the West Bank in a campaign the UN has called ethnic cleansing, which has been driven by hardline members of the ruling coalition, the finance minister, Bezalel Smotrich, and the national security minister, Itamar Ben-Gvir.“First they kicked the Bedouin out in the last three years and put up their caravans and bring their cows and sheep. They are using the land without any permission from the owners and from ourselves,” said Fr. Bashar Fawadleh, the parish priest of Christ the Redeemer church.Over the past year, the pressure has been turned up further. In July last year, settlers set fire to the grounds of the fifth–century Byzantine church, St Peter’s. Since then, bands of hilltop youth have raided the town four times, setting fire to cars, slashing tires and smashing windows.The church, part of the Latin Patriarchate of Jerusalem, supports small business ventures to provide jobs and builds affordable housing, but the community is still haemorrhaging. Fifteen families have left in the past two years, leaving the current population at about 1,100.After the attack on St Peter’s church in July, the US ambassador, Mike Huckabee, visited the town to condemn what he called “an act of terror” and to appeal for prosecutions.No prosecutions have been reported, and Huckabee has not spoken out over any of the subsequent attacks on Taybeh. A Southern Baptist minister, the ambassador is a fervent supporter of Israel’s territorial claims to the West Bank and beyond, which he argues are divinely ordained.In the West Bank however, the Christian population has shrunk from 5% of the total population in 1967 to roughly 1% today, about 45,000 people.The fierce religious nationalism that the Israeli government has cultivated in recent years has largely been directed at Palestinian Muslims but there has been a rising tide of anti-Christian incidents.Jad Isaac, the director general of the Applied Research Institute-Jerusalem, which tracks the Israeli takeover of land and resources on the West Bank, said: “When Netanyahu says we are the only country which is taking care of the Christians, he’s a liar. He said that in Palestinian Christian communities in the West Bank “the strategy is to make life intolerable”.

Japan's economic strategy has inadvertently created a Japanese century in global finance, driven by the yen's role as a cheap and reliable funding currency. The Bank of Japan's loose monetary policy has suppressed yields on public debt, effectively creating a publicly subsidized funding pipeline for bankers.By borrowing cheaply in yen and investing in higher-return assets, such as US equities, global investors have profited tens of billions of dollars from the 'yen carry trade'. This trade surged after the pandemic, with speculators betting $435bn in the two years to 2024 out of the estimated $1.7tn worth of yen supplied.Despite Japan's first rate hike since 2007 in March 2024, the carry trade remains popular. However, a persistent fear exists that the BoJ may aggressively raise rates, risking a global financial shock. A stronger yen would increase the cost of repaying yen-denominated debts, and heavily leveraged hedge funds could face significant losses.Japan's economic success has created an external dependency on the carry trade to manage internal crises. The country's reflationist prime minister, Sanae Takaichi, is committed to fiscal expansion, which may continue to stabilize the private sector but not necessarily drive growth.Economic analysis suggests that Japan's growth constraints are rooted in its macroeconomic prices, including profit, exchange rate, interest, wages, and inflation. While Japan has seen recent real wage growth, wages have historically been flat or falling, and the country's firms lack a reliably competitive exchange rate and viable profit rate to drive demand and reform.

As the 2026 local and regional elections draw nearer, the spectre of Trussonomics looms large over the British political landscape. From the Conservatives to the Greens, parties are unveiling extravagant fiscal promises that they claim can be funded by cuts elsewhere or additional borrowing, while insisting the broader economy will remain unharmed. Critics warn that any adverse effects will inevitably be shifted onto people and businesses outside the parties' core constituencies, effectively socialising the risk. Only Keir Starmer and his Labour cabinet appear to resist the pressure to re‑engineer the economy without acknowledging inevitable spill‑overs or extra costs. Former Prime Minister Liz Truss famously pledged £45 bn of tax cuts, financed through extra borrowing and so‑called welfare “efficiencies”. The plan was pitched as a catalyst for an entrepreneurial surge that would lift the UK out of a prolonged period of low productivity. Heading into May’s local polls, the Conservatives are touting a new “big‑spending” agenda after recent welfare cuts, highlighted by a headline pledge to shrink the welfare bill by £23 bn. Shadow Chancellor Mel Stride declared that the “culture of ‘something for nothing’ must end, now”. Green Party leader Zack Polanski has softened some of his party’s more radical proposals, yet the manifesto remains vague. Earlier drafts featured a litany of “free lunches”, signalling an ambition to raise taxes by **more than £170 bn a year** by the end of the next parliament. Key components of the Green plan include a £90 bn annual carbon tax and a matching increase in day‑to‑day public spending, alongside a proposed £90 bn boost to the capital‑spending budget (raising it from £160 bn to £250 bn per year). Reform UK has embraced Trussonomics with gusto, promising to raise the income‑tax threshold from £12,570 to £20,000 – a move that would cost the exchequer **over £40 bn each year**. Underlying many of these pledges is a belief that the UK can reverse a century of economic decline with a “magician’s wand”, ignoring potential repercussions for financial markets, trading partners, and a rapidly disintegrating global order. While the article briefly references the United States and France, the French electorate’s recent rejection of similarly flamboyant policies in local elections serves as a cautionary tale: voters in key cities like Paris and Marseille opted for centrist candidates over the radical platforms of Marine Le Pen’s National Rally and Jean‑Luc Mélenchon’s LFI. The broader context is a decade marked by two major wars, a quantum technological shift, and accelerating climate change – none of which offer quick‑fix solutions. Labour’s economic strategy, championed by Rachel Reeves, hinges on an early‑parliament spending surge intended to generate growth before the next general election. However, the damage inflicted by the previous government is still being reassessed, with the public‑finance gap now appearing larger than the £22 bn initially highlighted by Reeves. Labour still holds considerable funds earmarked for investment, but bureaucratic inertia in Whitehall hampers swift action, and Starmer bears responsibility for this paralysis. Demonstrating tangible returns on public spending – with HS2 currently the sole benchmark – could justify future tax increases on higher earners, provided the money is not wasted. In an uncertain world, the article argues that rational, evidence‑based governance is preferable to “outlandish initiatives” that create a multitude of losers. Ultimately, the piece concludes that Truss’s experiment was a disaster not merely because of the misguided belief that tax cuts can drive sustainable growth in a mature economy, but because it relied on an imagined “escape hatch” to propel the UK to a higher economic plane.

Ten years after the groundbreaking Panama Papers investigation, the revelations about hidden offshore accounts and shell companies continue to reverberate across the globe. The leak, which exposed the financial maneuvers of politicians, celebrities, and corporations, sparked a wave of regulatory scrutiny and public demand for greater transparency. In the decade since, governments have introduced stricter anti‑money‑laundering rules and enhanced reporting standards, yet the challenge of tracking illicit wealth persists. Analysts note that the papers highlighted systemic weaknesses in the international financial system, prompting ongoing debates about the balance between privacy and accountability. Beyond policy changes, the Panama Papers underscored the power of investigative journalism to uncover complex financial networks. Their legacy endures as journalists and watchdog groups continue to probe offshore activities, reinforcing the role of a free press in safeguarding democratic institutions. As the world reflects on this milestone, the conversation has shifted from the initial shock of the disclosures to a broader assessment of how such leaks shape global financial governance and influence future reforms.

Analysts say that more than two years of relentless campaigns against Gaza, the Houthis, Lebanon and now Iran have reshaped Israel’s politics, economy and social fabric.Washington, rather than Jerusalem, is likely to decide the ultimate outcome of the conflict that Israeli leaders describe as an “existential battle” with Tehran.According to the Bank of Israel, the cumulative cost of these wars has reached 352 billion shekels (about $112 bn), which translates to roughly 300 million shekels ($96 m) per day. The financial pressure is compounded by the International Court of Justice hearing credible genocide accusations and the International Criminal Court’s arrest warrants for the prime minister and a former defence minister.Domestically, Israelis endure frequent air‑raid alerts and school closures, while many families juggle work and shelter duties. Yet a poll by the Israel Democracy Institute in late March showed that 78 % of Jewish Israelis still support continuing the war, even as a majority doubt that Washington and Israeli planners have fully grasped Tehran’s capabilities.Political commentator Dahlia Scheindlin told Al Jazeera that a “graveness” has settled over the population, noting a grim determination to press on despite exhaustion.Israel’s right‑wing coalition, led by figures such as National Security Minister Itamar Ben‑Gvir and ultra‑Orthodox Finance Minister Bezalel Smotrich, has pushed through a controversial death‑penalty law targeting Palestinians and approved a record $271 bn budget. The budget allocates substantial funds to ultra‑Orthodox and settler communities, a move described by critics as an attempt to shore up Prime Minister Netanyahu’s waning support.Internationally, the United Nations, European Union and several Muslim‑majority states have condemned the new death‑penalty legislation, though Israel has so far avoided direct sanctions.Economists warn that the war’s fiscal impact extends beyond defence spending. A Le Monde analysis highlighted rising defence outlays, lost productivity from reservist mobilisation, and dampened consumer activity. While temporary tax cuts have mitigated fuel‑price spikes caused by Iran’s closure of the Strait of Hormuz, political economist Shir Hever cautions that Israel’s reliance on imported fuel means any relief is short‑lived.Hever likens the current economic trajectory to that of a “totalitarian state,” where military expenses are pursued arbitrarily, ignoring broader economic stability.Ultimately, the war’s duration may hinge more on U.S. policy than Israeli strategy. When asked by Newsmax about progress toward its goals, Prime Minister Netanyahu could only claim the effort was “halfway” achieved.

‘Your Friends & Neighbours’ returns for a second season that doubles down on its deliciously dark satire of the ultra‑rich enclave of Westport, New York – a thinly veiled stand‑in for Westchester’s high‑finance playground. The series remains a “rich dessert” of a show: indulgent, a little unhealthy, but undeniably moreish.Jon Hamm reprises Andrew “Coop” Cooper, a former Manhattan hedge‑fund star who now survives by burgling the opulent homes of his equally extravagant neighbours. Coop’s charisma is built on a blend of oak‑like steadiness and a perpetual tumbler of $500 whisky, allowing him to charm both victims and collaborators. Unlike Don Draper’s secret shame, Coop’s anxiety is a quieter, more comedic driver that fuels the season’s caper.Season two opens with Coop, now approaching fifty, injuring his back while rifling a mansion’s study. The mishap forces him to rely on his longtime lookout Elena (Aimee Carrero) and brings a new, reluctant ally into the fold. Meanwhile, the arrival of the flamboyant billionaire Owen (James Marsden) rattles the delicate Westport ecosystem, adding fresh tension to the criminal enterprise.The narrative also shifts focus to the personal toll of wealth. Coop’s ex‑wife Mel (Amanda Peet) navigates perimenopause and the looming emptiness of her children leaving for college, while their daughter Tori (Isabel Gravitt) deliberately flunks a Princeton interview, railing against the university as a “engine of rigged, corrosive capitalism.” This scene underscores the show’s satirical edge, reminding viewers that the glittering excess is built on fragile foundations.Despite its glossy façade, the series offers unexpected emotional depth. Hamm and Peet convey a wistful sadness that resonates beyond the bank‑balance zeros, suggesting that middle‑aged ex‑lovers remain bound by past mistakes. The season balances heist thrills with moments of genuine heart, positioning the show as a guilty‑pleasure dramedy that “gets away with it.”Your Friends & Neighbours is currently streaming on Apple TV+.