Lebanon’s Economy Between Scenarios of Argentina, Venezuela

A worker cleans receipts from an ATM machine outside a closed Blom bank branch in the southern city of Sidon, Lebanon November 12, 2019. REUTERS/Ali Hashisho
A worker cleans receipts from an ATM machine outside a closed Blom bank branch in the southern city of Sidon, Lebanon November 12, 2019. REUTERS/Ali Hashisho
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Lebanon’s Economy Between Scenarios of Argentina, Venezuela

A worker cleans receipts from an ATM machine outside a closed Blom bank branch in the southern city of Sidon, Lebanon November 12, 2019. REUTERS/Ali Hashisho
A worker cleans receipts from an ATM machine outside a closed Blom bank branch in the southern city of Sidon, Lebanon November 12, 2019. REUTERS/Ali Hashisho

The complex Lebanese crisis opened the door for comparison with previous crises that took place in other countries, in search of common points for which international entities found effective solutions, with the hope of facilitating the process of soliciting rescue programs.

Bank of America’s Merrill Lynch prepared a study last year about the debt restructuring imposed by the International Monetary Fund (IMF), and its impact on the banking sector.

The study considered that Lebanon was close to countries such as Mozambique, Cyprus, and Barbados, which are debt-ridden states and have a high percentage of public finance deficits relative to GDP.

Many experts, however, consider that Lebanon may be closer to Argentina, while others describe it as “another Greece”.

In this context, Dr. Pierre Khoury, economist, says: “There is a fundamental error when comparing Lebanon’s experience with Argentina, as the latter has entered into structural adjustment programs with the IMF, which are programs that are based on an essential change in the economic and social structure, redistribution of income and factors of production.”

According to Khoury, Argentina has made an explicit political decision to follow the policy of the IMF, based on political harmony and leadership, which has not seen sharp differences over the cooperation with the Fund.

“In the past two years, the IMF secured massive financing for Argentina in two phases, the first reaching USD 50 billion, and then an additional USD 7 billion was added to it,” he explained.

“In Lebanon, there is no unified view of how to get out of the economic crisis,” Khoury said.

“Politically, there is a major rift between political parties on cooperation with the IMF through a specific program.”

Khoury noted that the IMF only “gives money based on agreement on a reform program that restructures the economy towards further liberalizing the sector and opening it to the outside, and creating an economic environment that encourages the flow of capital, by signing a clear-cut agreement, which includes executive steps linked to specific timetables.”

Based on these points, Khoury believes that Lebanon is more inclined in its crisis towards the Venezuelan model – the oil-rich country. This advantage is still only a probability in Lebanon, at the present time.

Khoury added that the economic, political and financial blockade led to the collapse of the internal economy of Venezuela, and the disruption of the international payment system, in addition to the crisis mismanagement of President Nicolas Maduro’s government.

He noted that Lebanon had common points with Venezuela, whether the set of mistakes in the public administration of the state, the lack of a long-term view, the dangers of geopolitical conflicts and their potential impact on the economic activity and the lack of international flows, as well as corruption.

“Lebanon is witnessing a sharp division in politics, especially with regards to the IMF assistance... All these matters make Lebanon close to the Venezuelan model,” Khoury underlined.



Trump Unveils $200 Billion South Korean Investment in US; Seoul Hedges on Alaska Pipeline

US President Donald Trump (L, sitting) makes an announcement in the Oval Office of the White House in Washington, DC, USA, 30 September 2026. EPA/YURI GRIPAS / POOL
US President Donald Trump (L, sitting) makes an announcement in the Oval Office of the White House in Washington, DC, USA, 30 September 2026. EPA/YURI GRIPAS / POOL
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Trump Unveils $200 Billion South Korean Investment in US; Seoul Hedges on Alaska Pipeline

US President Donald Trump (L, sitting) makes an announcement in the Oval Office of the White House in Washington, DC, USA, 30 September 2026. EPA/YURI GRIPAS / POOL
US President Donald Trump (L, sitting) makes an announcement in the Oval Office of the White House in Washington, DC, USA, 30 September 2026. EPA/YURI GRIPAS / POOL

US President Donald Trump unveiled plans on Wednesday for South Korea to invest some $200 billion in US projects, but Seoul quickly suggested one key element, a $54 billion pipeline for an LNG project in Alaska, was not yet set in stone.

The announcement from the White House amounted to the first set of major projects under a broader $350 billion strategic investment package South Korea made as part of a trade agreement with Washington last year. The package included $150 billion for shipbuilding and $200 billion for strategic investments.

"Thanks to the agreements my administration has secured with the Republic of Korea, they will invest up to $200 billion," Trump said from the Oval Office.

According to Reuters, he said the investment would include the construction of eight large-scale nuclear power plants, a natural gas pipeline and a 6-gigawatt power generation facility in Texas.

The announcement is the latest in a series of economic and investment deals Trump is highlighting ahead of November's midterm elections, as he seeks to reinforce his economic ⁠record amid voter concerns ⁠over the Iran war and high gasoline prices.

The pipeline project could carry political significance in Alaska, where Republican Senator Dan Sullivan faces a competitive reelection race against Democrat Mary Peltola. Sullivan attended Wednesday's announcement.

South Korea's government, however, said the pipeline project would only go forward if certain commercial and legal conditions are met. Seoul confirmed other elements of Trump's announcement, saying it would invest $22.3 billion in a Texas gas power project to power AI data centers, as well as $120 billion to build eight nuclear reactors.

South Korea will begin reviewing the Alaska LNG project to assess its commercial viability and compliance with legal procedures, Seoul's industry ministry said in a ⁠statement.

"No decision has been made on whether to invest or on the size of the investment," it said.

South Korean President Lee Jae Myung also said in a post on X that the commercial viability of both the LNG project and the nuclear reactors must be confirmed before they proceed.

Any differences between Seoul and Washington over details of the deal could lead to disputes between the allies over its implementation, analysts in Seoul said.

The Alaska LNG project, if it ultimately goes forward, includes an 807-mile pipeline carrying natural gas from the North Slope to a liquefaction facility on Alaska's southern coast, allowing the fuel to be shipped to Asian markets.

The project is designed to transport about 3.9 billion cubic feet of natural gas per day and produce up to 20 million metric tons of LNG annually, according to the White House.

Trump has repeatedly promoted the project as a way to expand US energy exports and strengthen ties with allies including South Korea and Japan.

But the project has faced years of ⁠uncertainty over its cost, financing ⁠and commercial viability.

South Korea's industry ministry said last week that a more than 6-gigawatt gas-fired power plant in Encinal, Texas, was the first project selected under the $200 billion strategic investment program.

Japan's two biggest LNG importers, JERA and Tokyo Gas, have signed preliminary agreements to buy a combined 2 million metric tons a year from Alaska LNG if it is built.

Glenfarne, the project's developer, welcomed Trump's investment announcement. It has lined up commitments for 13 million tons a year, but needs another 3 million tons to support a final investment decision and make commitments binding.

"Glenfarne will work with the US and Korean governments to finalize the investment structure and complete the remaining steps required to reach FID," it said in a statement.

The eight nuclear plants would form part of Trump's effort to expand US nuclear generation as electricity demand rises, including from data centers and manufacturing. South Korea has been discussing a potential investment in US nuclear projects as part of the broader package.

The Texas gas-fired power project is expected to supply electricity to energy-intensive facilities, including semiconductor plants and data centers. South Korean officials have said the project was selected after reviews of its commercial viability.


Asian Shares Mostly Rise amid Market Optimism about AI, Despite Iran Worries

A financial data screen in the dealing room of Hana Bank shows the Korea Composite Stock Price Index (KOSPI) after South Korean shares closed higher in Seoul, South Korea, 23 September 2026. EPA/YONHAP SOUTH KOREA OUT
A financial data screen in the dealing room of Hana Bank shows the Korea Composite Stock Price Index (KOSPI) after South Korean shares closed higher in Seoul, South Korea, 23 September 2026. EPA/YONHAP SOUTH KOREA OUT
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Asian Shares Mostly Rise amid Market Optimism about AI, Despite Iran Worries

A financial data screen in the dealing room of Hana Bank shows the Korea Composite Stock Price Index (KOSPI) after South Korean shares closed higher in Seoul, South Korea, 23 September 2026. EPA/YONHAP SOUTH KOREA OUT
A financial data screen in the dealing room of Hana Bank shows the Korea Composite Stock Price Index (KOSPI) after South Korean shares closed higher in Seoul, South Korea, 23 September 2026. EPA/YONHAP SOUTH KOREA OUT

Asian shares mostly rose in early Thursday trading amid investor interest in technology-related issues, despite ongoing worries about the war in Iran.

Japan's benchmark Nikkei 225 jumped 2.4% in morning trading to 68,355.81. Australia's S&P/ASX 200 lost 1.7% to 8,638.10. South Korea's Kospi edged up 0.5% to 6,873.06. Hong Kong's Hang Seng added 0.4% to 24,613.27, while the Shanghai Composite gained 0.3% to 3,842.19.

In Tokyo trading, issues expected to get a boost from the solid demand in computer chips and AI-related growth have been rising in recent sessions, including Advantest Corp., Tokyo Electron and SoftBank Group Corp.

US stocks mostly fell Wednesday, despite indications that the US economy remains strong. On Wall Street, the S&P 500 slipped 0.3% to close out its third losing month in the last four. The Dow Jones Industrial Average dropped 443 points, or 0.9%, and the Nasdaq composite added 0.2%.

The report that said inflation wasn’t as bad across the United States last month as economists expected. It said the cost of living for US consumers was 3.4% higher overall in August than a year earlier. That was not as high as the 3.7% inflation rate that economists expected, even if it remained worse than the Fed’s 2% target.

In energy trading, benchmark US crude lost 0.56% to $89.91 a barrel. Brent crude, the international standard, fell 0.35% to $97.69 a barrel.

Oil prices have been swinging wildly in recent months amid uncertainty about when the war with Iran will allow the flow of crude to be fully restored. Iranian officials indicated Wednesday they have received an official US response to Tehran’s latest proposal to end the seven-month war. The officials did not say what the latest response contained and whether it was a rejection.

US President Donald Trump publicly rejected Iran's proposal just days earlier to reopen the Strait of Hormuz within a week if the US meets certain conditions.

The yield on the 10-year Treasury, which is the centerpiece of the bond market, rose to 5.29%, up from 5.26% late Tuesday, and it’s back to where it was more than two decades ago in 2002.

The 30-year Treasury yield, which takes into account expectations for inflation and economic growth many years down the line, climbed to 5.64% from 5.59% late Tuesday.

All told, the S&P 500 fell 19.30 points to 7,651.54. The Dow Jones Industrial Average dropped 443.87 to 50,906.05, and the Nasdaq composite added 63.52 to 26,861.06.

In currency trading, the US dollar rose to 158.17 Japanese yen from 157.33 yen. The euro cost $1.1328, down from $1.1334.


Gold Firms as Softer US Inflation Dims October Fed Hike Bets

UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
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Gold Firms as Softer US Inflation Dims October Fed Hike Bets

UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo
UK gold bullion bars are stacked at Baird & Co in Hatton Garden in London, Britain, October 8, 2025. REUTERS/Hiba Kola/File Photo

Gold rose on Thursday after a softer-than-expected US inflation report tempered expectations for a Federal Reserve rate hike this month, with markets looking to upcoming jobs data for further policy signals.

Spot gold gained 0.8% to $4,187.43 per ounce by 0625 GMT, starting the month on a positive note after a more than 6% fall in September. US gold futures for December delivery firmed 0.7% to $4,217.50, Reuters reported.

Data on Wednesday showed US inflation rose ⁠less than expected in ⁠August, while price pressures were revised lower for the prior month.

The data reduced expectations of a rate hike in October, with markets pricing in a 36% chance, down from 45% before the release. Traders, however, still see an 89% probability of an increase in December.

Higher interest rates reduce the ⁠appeal of gold, which does not pay interest.

"Incoming data is going to be important... to see how the market deals with it and shapes rate-hike expectations," said Ilya Spivak, head of global macro at Tastylive.

"We are in a situation where the market is dealing with a lot of conflicting forces."

The crucial US nonfarm payrolls report for September is scheduled for release on Friday.

Limiting gains for gold, the US dollar drifted higher. A stronger greenback makes dollar-priced metals costlier for holders of ⁠other currencies.

All ⁠of gold's "September losses are unlikely to be recovered, but there are reasons to believe that the worst of the correction is over for now and that there is a case for higher prices," said Bart Melek, global head of commodity strategy at TD Securities.

On the geopolitical front, Iran said on Wednesday it had received a US response to its latest proposal to resurrect the collapsed ceasefire, days after US President Donald Trump said he had rejected it.

Spot silver rose 1.4% to $61.23, platinum climbed 1.2% to $1,727.18 and palladium gained 0.6% to $1,210.75.