US House Speaker Kevin McCarthy has said "we do not have an agreement yet" ahead of a holiday weekend just before the debt default deadline on June 1.
“We knew this would not be easy," Mr McCarthy told reporters on Thursday. "It’s hard but we’re working. And we’re going to continue to work 'til we get this done."
Negotiators from the White House and the Capitol met online on Thursday and Mr McCarthy's top Republican negotiator, Representative Garret Graves, said debt-ceiling talks would continue into the night.
“We’ve been taking to the White House all day,” Mr McCarthy said. “We're working hard to make it happen.”
Most legislators have left Washington for the Memorial Day holiday weekend, but he said he will be around to continue negotiations.
Earlier on Thursday, President Joe Biden maintained that the US would not default on its debt after a series of economic reports indicated growing concerns for the world's largest economy.
Mr Biden said he and Mr McCarthy have had “several productive conversations”.
The framework of the deal is currently focused on the US budget.
The President said he proposed a deal that would cut federal spending by $1 trillion and freeze it for the next two years. But Mr McCarthy has sought to roll back spending to 2022 levels.
“Speaker McCarthy and I have a very different view on who should bear the burden of additional efforts to get our fiscal house in order,” Mr Biden said.
He also sought to show confidence that citizens would not miss Social Security payments, veterans would still have access to health care and economic progress would continue to be made.
“Default puts all that at risk. Congressional leaders understand that and they've all agreed there will be no default,” Mr Biden said.
Mr McCarthy said he had directed his negotiators “to work 24/7 to try to solve this problem”. Kevin Hern, head of the largest Republican caucus in the chamber, said a deal could be reached by Friday afternoon.
The latest round of negotiations follows a report from credit agency Moody's, which found that the impasse is one of many economic problems in the US that will cause emerging markets to suffer.
The credit agency said “any consequences of the debt-ceiling impasse” would contribute to weakening credit conditions in emerging economies.
Thursday's report from Moody's was the latest in a trio of warning signs for the world's biggest economy.
Revised gross domestic product figures released by the Commerce Department showed that the US economy grew by 1.3 per cent in the last quarter, slightly higher than original 1.1 per cent estimates but still at a tepid pace.
Both Moody's and the Federal Reserve expect that the US will enter a mild recession this year.
The credit agency said the US central bank's monetary policy, as well as stress in the banking system, could also harm emerging markets.
“The focus of many market participants has returned to the global economic growth outlook and the future path for US interest rate,” the Moody's report said.
Minutes from the Fed's May 2-3 meeting showed that policymakers remain uncertain on how to tackle interest rates in future meetings, with some participants arguing for a pause in rate increases while others felt more tightening was needed.
The central bank raised interest rates to the range of 5 and 5.25 per cent in a continued effort to drive down the nation's inflation. The Fed's preferred inflation metric showed prices increased by 4.2 per cent year-on-year in March, still well above their 2 per cent target.
“Risks to our baseline include whether and how quickly US inflation subsides and the Fed's response to it,” Moody's said.
The agency expects growth to decline “in most emerging markets this year” with commodity exporters in the Middle East among those to face the most hardship. Exporters in Africa and Latin America are also projected to suffer.
The report comes a day after Fitch, a rating agency, placed the US on negative credit watch because of the impasse in Washington.
“Tonight's warning underscores the need for swift bipartisan action by Congress to raise or suspend the debt limit and avoid a manufactured crisis for our country,” Treasury Department spokeswoman Lily Adams tweeted.
With the threat of a default looming, Treasury Secretary Janet Yellen said the US was already feeling the effects of brinkmanship over the debt ceiling. Fed Chair Jerome Powell has also warned his department would not be able to protect the US economy in the event of a default.
Time is running out, with only seven days to go until the date on which Ms Yellen said the US could default on its financial obligations. Even a short-term default could have disastrous effects for the US economy, she has warned.
The Treasury is now preparing for the possibility that the $31.4 trillion debt limit will not be raised in time, The Wall Street Journal reported. The department has been preparing a backup plan that would delay some payments should that occur.
Members of the House of Representatives began on a 10-day recess and are not scheduled to return until June 4. Mr McCarthy said House members would be given 24 hours' notice to return to Washington if there needs to be a vote on a proposal before then.
With such a tight deadline and with many members currently out of town, Congress will have to rush the bill through both chambers before it goes to Mr Biden's desk.
25%20Days%20to%20Aden
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Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
TOP%2010%20MOST%20POLLUTED%20CITIES
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The%20specs
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More on animal trafficking
The specS: 2018 Toyota Camry
Price: base / as tested: Dh91,000 / Dh114,000
Engine: 3.5-litre V6
Gearbox: Eight-speed automatic
Power: 298hp @ 6,600rpm
Torque: 356Nm @ 4,700rpm
Fuel economy, combined: 7.0L / 100km
The specs: 2018 Alfa Romeo Stelvio
Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
Torque: 400Nm @ 2,250rpm
Fuel economy, combined: 7L / 100km
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
MATCH INFO
Day 2 at the Gabba
Australia 312-1
Warner 151 not out, Burns 97, Labuschagne 55 not out
Pakistan 240
Shafiq 76, Starc 4-52
'The Ice Road'
Director: Jonathan Hensleigh
Stars: Liam Neeson, Amber Midthunder, Laurence Fishburne
2/5
Scoreline
Bournemouth 2
Wilson 70', Ibe 74'
Arsenal 1
Bellerin 52'
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
The biog
Name: Fareed Lafta
Age: 40
From: Baghdad, Iraq
Mission: Promote world peace
Favourite poet: Al Mutanabbi
Role models: His parents
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
Scorebox
Dubai Hurricanes 31 Dubai Sports City Eagles 22
Hurricanes
Tries: Finck, Powell, Jordan, Roderick, Heathcote
Cons: Tredray 2, Powell
Eagles
Tries: O’Driscoll 2, Ives
Cons: Carey 2
Pens: Carey
SPEC%20SHEET%3A%20SAMSUNG%20GALAXY%20S23%20ULTRA
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UAE jiu-jitsu squad
Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)
Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)
Company%20profile
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Easter%20Sunday
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World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
