Money

Western governments are borrowing at record highs – does it matter?

Published

2 years ago

March 7, 2024

In its latest report on global debt, the Organisation for Economic Co-operation and Development has projected a surge in government borrowing, reaching an unprecedented $15.8 trillion this year.

The Paris-based research body revealed that gross borrowing, encompassing both refinancing of maturing bonds and new issuances, climbed from $12.1 trillion in 2022 to $14.1 trillion in 2023.

This substantial increase in borrowing is attributed to the ongoing economic repercussions of the COVID-19 pandemic, which prompted governments worldwide to embark on massive borrowing to support households and businesses.

The OECD noted that the total borrowing is expected to surpass the previous peak of $15.4 trillion recorded in 2020.

A significant portion of this year’s borrowing, approximately $12.6 trillion, will be directed towards refinancing maturing bonds issued during the pandemic.

However, the surge in inflation post-pandemic has led to higher interest rates, causing the average cost of new borrowing for governments to spike to 4% in 2023 from 1% in 2021.

Economic output

Consequently, the cost of interest payments for governments has escalated, accounting for 2.9% of annual economic output in 2023 compared to 2.3% in 2021.

The OECD warned that this trend is expected to continue, projecting a further half-percentage-point increase in interest payment costs by 2026.

Moreover, governments are anticipated to encounter challenges in finding buyers for their debt as central banks begin to reduce their holdings of government bonds, which were amassed in efforts to stimulate growth and inflation following the global financial crisis.

With central banks gradually withdrawing from the bond market, the OECD highlighted the need for governments to attract more price-sensitive investors, such as non-bank financial sectors and households.

The report supported that central banks in OECD member countries currently hold government bonds equivalent to 30% of annual economic output, mirroring the surge in total government debt since the financial crisis.

The OECD anticipates a record level of net bond supply to be absorbed by the broader market as central banks embark on quantitative tightening.

Money

U.S. dollar weakens while Australian dollar rises amid global market shifts

Published

2 days ago

January 30, 2026

Harvey Vargas

US dollar weakens as Trump comments; Australian dollar gains from commodity prices and RBA rate hike expectations

The US dollar is coming under pressure as the economy remains strong and President Trump comments on its decline. We explore how this is impacting major currencies around the world and what it means for investors.

Meanwhile, the Australian dollar is benefiting from rising commodity prices and growing expectations of an RBA rate hike. Global investors are increasingly drawn to Australia’s bond market as economic conditions shift.

Currency trading strategies are adapting to this changing landscape, with potential implications for interest rates and international markets. Steve Gopalan from SkandaFX breaks down the trends.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#USDDollar #AustralianDollar #ForexTrading #RBA #InterestRates #GlobalEconomy #CurrencyMarket #Ticker

Money

Wall Street slides as AI spending raises investor concerns

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives. Tune in for insights!

Published

2 days ago

January 30, 2026

Harvey Vargas

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives.

Wall Street closed lower on Thursday, with the Nasdaq leading losses as investors questioned whether Big Tech’s massive AI spending will pay off. Microsoft shares tumbled after revealing record AI infrastructure costs, while Meta rallied on strong earnings and a bullish outlook.

Kyle Rodda from Capital.com joins us to explain what spooked markets, which tech names are holding up, and whether AI budgets are getting too big.

We also discuss rate expectations, macro risks, and what to watch in the upcoming earnings season.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

Money

Tesla brand value plummets amid Elon Musk’s political focus

Tesla’s brand value plummeted to $27.61 billion in 2025 amid Musk’s political shift, sparking investor concern.

Published

4 days ago

January 28, 2026

Harvey Vargas

Tesla’s brand value plummeted to $27.61 billion in 2025 amid Musk’s political shift, sparking investor concern.

Tesla’s brand value plummeted by $15.4 billion in 2025, falling to $27.61 billion from $66.2 billion in early 2023. Analysts say Elon Musk’s political focus and a slowdown in new models have distracted the company’s core business.

In the U.S., Tesla’s recommendation score sank to just 4 out of 10, down from 8.2 in 2023. Despite this, loyalty among existing owners remains high at 92 per cent, showing a strong but shrinking fan base.

#TeslaNews #ElonMusk #BrandValue