Key Takeaways
- The International Monetary Fund (IMF) has revealed an estimated $11.3 billion in hidden debt for Senegal by the end of 2023, prompting an internal review and the need for significant remedial measures.
- US natural gas storage saw a smaller-than-expected build, while the US Energy Department's selection of a site for an AI data center signals a major federal push into AI infrastructure, increasing focus on energy providers like Constellation Energy (CEG).
- Global trade tensions are escalating, with the European Union approving a plan to target €93 billion in US goods with potential tariffs, and Russia poised to impose harsher gasoline export restrictions.
- Wix (WIX) is enhancing its e-commerce platform by integrating PayPal payment options, while Fiserv (FI) is positioned to benefit from the growing adoption of stablecoins, having launched its own bank-focused stablecoin, FIUSD.
The International Monetary Fund (IMF) is facing scrutiny after it reported an estimated $11.3 billion in hidden debt for Senegal by the close of 2023. This figure includes approximately 7.4% of GDP attributed to state-owned enterprises, which went unnoticed during an internal review. The IMF spokesperson indicated that the fund will brief its board on how this hidden debt was overlooked and aims to finalize an agreement with Senegal on important remedial measures soon, pending additional data on the nation’s updated debt.
In the energy sector, the latest US Energy Information Administration (EIA) data showed a natural gas storage change of +23 Bcf for the week ending July 18, which was below the estimated +27 Bcf or +28 Bcf and significantly lower than the previous week's +46 Bcf. Concurrently, the US Energy Department announced the site selection for an AI data center, a move signaling a major federal push into AI infrastructure. This development puts companies like Constellation Energy (CEG) in focus, as energy demand is expected to surge to power these new facilities. Russia is also reportedly set to impose harsher gasoline export restrictions soon, according to sources.
Geopolitical and trade tensions continue to simmer globally. The European Union has approved a plan to target €93 billion in US goods with potential tariffs if ongoing trade talks break down, moving closer to retaliation as a deadline looms for a deal with Washington. Meanwhile, Mexican President Sheinbaum stated her intention to communicate with former President Trump if necessary, aiming for a tariff agreement. Separately, Gaza ceasefire talks are reportedly in limbo as Israel has recalled its negotiators.
In corporate news, Wix (WIX) announced it would offer PayPal payment options for merchants on its platform, enhancing e-commerce flexibility for its users. Financial technology firm Fiserv (FI) is experiencing positive sentiment as banks prepare for stablecoin launches. Fiserv has already launched FIUSD, a bank-focused stablecoin built by Paxos, positioning itself to gain through the adoption of stablecoin infrastructure by other financial institutions. Separately, Honda has initiated a new insurance service designed to offer affordable and easy coverage for Acura and Honda buyers.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.