International News 12 March 2025
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JPMorgan Increases Chance of US Recession This Year to 40%, Investors Panic!
Crypto markets and tech stocks experienced a significant sell-off on 10 March amidst growing fears of a US recession. Economists at JPMorgan and Goldman Sachs increased the probability of a recession, attributing it to extreme US economic policies and the Trump administration's firm stance. Morgan Stanley also revised down their forecast for US economic growth, expecting GDP to grow only 1.5% in 2025 and drop to 1.2% in 2026. Despite these concerns, President Trump's economic advisor, Kevin Hassett, attempted to reassure the public that there are still reasons for optimism about the US economy. However, as the market sentiment remains negative, the fear of a recession continues to loom.
BI and State Bank Of Vietnam Agree to Strengthen Banking Cooperation
Bank Indonesia (BI) and the State Bank of Vietnam (SBV) have signed a Memorandum of Understanding (MoU) to enhance bilateral cooperation in the banking sector. The agreement, effective from 7 March 2025 for the next 5 years, marks an important milestone in strengthening the relationship between BI and SBV. Both central banks are committed to promoting financial stability, economic strength, and sustainable growth. The MoU is a result of the meeting between the President of Indonesia and the General Secretary of Vietnam, as well as celebrating 70 years of diplomatic relations between the two countries. This collaboration aims to provide mutually beneficial results for both central banks and contribute to national economic stability and growth. The State Bank of Vietnam also emphasized the significance of the MoU in strengthening financial collaboration between the two countries and maintaining financial and economic resilience.
Official! Mark Carney Replaces Justin Trudeau as Canada's Prime Minister
Former central banker Mark Carney has been elected leader of Canada's ruling Liberal Party and will succeed Justin Trudeau as Canada's prime minister, according to official results. Carney will take over at a challenging time for Canada, as the country is embroiled in a trade war with the United States under President Donald Trump, and is also due to hold a general election soon. Carney won with 86 per cent of the vote, defeating former finance minister Chrystia Freeland. He criticised Trump for undermining Canada's economy and attacking Canadian workers, families and businesses. Carney stressed that his leadership will bring significant changes and that they will have to respond to new challenges at an unprecedented pace. Trudeau announced his resignation in January after his approval ratings plummeted, setting off an immediate race to replace him.