By Hannah Lang, Michelle Price and Chris Prentice WASHINGTON (Reuters) – Officials on President-elect Donald Trump’s transition team are considering current and former Commodity Futures Trading Commission officials for chair of the agency, according to four people with knowledge of the matter.  While the derivatives market regulator has traditionally been seen as a junior player in financial policy, it is likely to play a more prominent role as Trump’s Republican administration starts to overhaul cryptocurrency regulations next year.  Among those under consideration for CFTC chair is Summer Mersinger, a Republican CFTC commissioner who has defended crypto firms in the face of enforcement actions and advocated for the agency to write rules of the road for the crypto industry, three of the people said.  Mersinger is currently seen as the frontrunner, in part because she was a top aide to Republican Senator John Thune from 2004 to 2016, two said. Senate Republicans on Wednesday elected Thune to lead the chamber next year.  Also in the mix for CFTC chair is former Republican CFTC commissioner Jill Sommers, who currently works at Washington consultancy Patomak Global Partners (NYSE:), and Josh Sterling, partner at law firm Milbank and a former CFTC official, three of the people said.  The situation is fluid and the transition team is not expected to start deciding on financial agency nominations this week, said one of the above sources and a fourth person with knowledge of the matter. They added that those announcements will likely come after Trump chooses a Treasury secretary.  The CFTC currently comprises five politically appointed commissioners: three Democrats and two Republicans. Caroline Pham, the other Republican CFTC commissioner, is also a possible contender and keen for the job, two of the people said. She has called for the agency to create a program to support the development of digital asset companies.  Mersinger and Pham declined to comment through spokespeople on Thursday. Sterling, Sommers and a CFTC spokesperson also declined to comment. Politico first reported earlier on Thursday that the four were in the running.  “President-Elect Trump is making decisions on who will serve in his second Administration. Those decisions will be announced when they are made,” Karoline Leavitt, Trump transition spokeswoman, told Reuters via email.  President Joe Biden’s regulators have sued multiple crypto companies, arguing they are violating U.S. securities, derivatives trading and anti-money-laundering laws. Crypto companies say the rules are not appropriate for their industry, and have lobbied for Congress to create a new framework overseen by the CFTC. Trump courted crypto cash with promises to be a “crypto president,” and the industry is pushing for his administration to make good on a raft of promised policies that would end that crackdown and promote the widespread adoption of digital assets.  Transition team officials are discussing how to put those policies into action, and are taking advice from prominent crypto industry executives, two of the people said.  Among them are former CFTC Chair Heath Tarbert, who is chief legal officer at stablecoin issuer Circle, and former Republican CFTC commissioner Brian Quintenz, who is head of policy for a16z crypto, the crypto venture funds of Andreessen Horowitz, the people said.  Tarbert declined to comment through a Circle spokesperson. Quintenz did not immediately respond to a request for comment. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Trump transition team considers current, former CFTC officials for agency chair By Reuters first appeared on Forex Trader Hub.

By Lisa Pauline Mattackal and Purvi Agarwal (Reuters) -U.S. stock index futures were little changed on Thursday as investors awaited a fresh batch of economic data and Federal Reserve Chair Jerome Powell’s comments later in the day for clues on the outlook for the economy and monetary policy. The producer price index (PPI) reading for October and weekly jobless claims data are expected at 8:30 a.m. ET. “These numbers (PPI) better reflect corporate pricing power than the consumer price data, the tone should be consistent with a December rate cut,” said Paul Donovan, chief economist at UBS Global Wealth Management. Traders are broadly pricing in an 86% chance of a 25-basis point interest rate cut at the Fed’s December meeting, according to the CME FedWatch tool. Bets on a December cut increased after Wednesday’s consumer price index data, which was in line with forecasts. Powell will provide an update on his economic outlook to business leaders in Dallas, a day after some Fed policymakers shifted their attention back to inflation risks as they weighed when, and how fast and far, to cut interest rates. Policies under President-elect Donald Trump’s administration are widely expected to add to inflationary pressures. The Republican Party will control both houses of Congress when Trump takes office in January, Edison Research projected on Wednesday, enabling him to push an agenda of slashing taxes and shrinking the federal government. Changing inflation expectations are clearly visible in the bond market, where the has ticked up to its highest since July, which could limit gains for rate-sensitive equities. Dow E-minis were up 85 points, or 0.19%, E-minis were up 5.25 points, or 0.09%, and E-minis were up 9.25 points, or 0.04%. Futures tracking the small-cap jumped 0.6% after the index closed down nearly 1% on Wednesday. Shares of cryptocurrency-focused companies rose on Thursday as bitcoin continued to climb on hopes of favorable policies under Trump. Coinbase Global (NASDAQ:) gained 3.8%, miner MARA Holdings rose 2.6% and bitcoin buyer MicroStrategy was up 3.4% in premarket trading. The Dow and the S&P 500 edged higher on Wednesday, while the Nasdaq lost ground. Walt Disney (NYSE:) climbed 6.5% after reporting quarterly earnings that topped Wall Street’s estimates. U.S.-listed shares of JD (NASDAQ:).com were down 2.1% after the Chinese e-commerce group missed market estimates for quarterly revenue. Cisco (NASDAQ:) dipped 3.3% after the computer networking equipment maker forecast annual revenue broadly in line with estimates after the bell on Wednesday. Tapestry (NYSE:) gained 7.2% after the Coach parent said it was terminating its $8.5 billion deal for Michael Kors-owner Capri Holdings (NYSE:) after the deal was blocked by a U.S. judge. Capri’s shares fell 6%. Remarks from Fed officials Thomas Barkin and John Williams are expected later in the day. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Wall Street set for muted open after in-line monthly producer prices By Reuters first appeared on Forex Trader Hub.

By Chris Kirkham and Rachael Levy (Reuters) – As Tesla’s electric-vehicle sales have flattened this year, CEO Elon Musk has increasingly staked the company’s future on his vision for self-driving robotaxis, despite the massive technological and regulatory obstacles in delivering them. Now Musk – as one of President-elect Donald Trump’s biggest backers – may have the influence to help break through those regulatory roadblocks. Tesla (NASDAQ:) currently faces a diverse landscape of state driverless-vehicle laws that Musk blasted in an Oct. 23 earnings call, calling it “incredibly painful to do it state-by-state.” He signaled he would advocate for one federal approval process if Trump won and followed through on a promise to name Musk “efficiency czar.” “If there’s a department of government efficiency,” Musk said, “I’ll try to help make that happen.” On Tuesday, Trump tapped Musk and another ally to lead such an entity, which is not a government agency. It remains unclear how the organization will function. Musk’s sway is likely to extend beyond efficiency. The billionaire, who gave at least $119 million to a pro-Trump group during the campaign, is expected to influence the president-elect’s pick for the next Transportation Department secretary, according to a person close to Musk and Trump’s transition planning. That department, which includes the National Highway Traffic Safety Administration (NHTSA), regulates automakers and could push through significant changes to the self-driving rules at a national level. But even if Musk secures favorable regulation, Tesla would still face steep technological and legal hurdles in deploying driverless vehicles, along with questions over how to insure them, according to Reuters’ interviews with nine regulatory and legal experts and a review of U.S. state driverless-vehicle laws. Tesla and Musk did not respond to Reuters’ requests for comment. At present, Tesla remains years behind rivals in California, by far the carmaker’s largest U.S. market and a primary testing ground for the autonomous-vehicle industry. Other companies have navigated California’s regulatory maze and completed millions of autonomous-vehicle testing miles under state oversight, according to a Reuters review of state regulatory data. If Musk can succeed in securing federal regulations or laws that preempt state oversight, experts in autonomous-vehicle regulation said, it could allow Tesla to sidestep regulations in California. Tesla has logged just 562 testing miles since 2016 and hasn’t filed autonomous-driving reports to California regulators since 2019, state records show. Alphabet’s (NASDAQ:) Waymo, by comparison, logged more than 13 million testing miles and secured seven different regulatory approvals between 2014 and 2023, when it received approval to charge passengers for rides in driverless robotaxis. Waymo is among just three companies with California permits to commercially operate driverless vehicles and the only one approved to operate a robotaxi fleet anything like what Musk envisions. Waymo declined to comment on Tesla’s regulatory strategy or its approach to autonomous driving. Tesla currently has the lowest-level California permit, which allows testing with human-driver oversight. Only six companies have driverless-testing approvals. California data for those firms shows each tested with a driver for a minimum of three years, often for millions of miles, before securing driverless-testing approvals. Amazon (NASDAQ:)’s Zoox, for instance, logged more than 1.6 million miles over three years. General Motors’ Cruise racked up more than 2.1 million miles over five years. Cruise declined to comment. Zoox said it also has a separate driverless “pilot” permit from California regulators that allows the company to pick up passengers without charging fares. “Tesla has that entire journey in front of them,” said Phil Koopman, a Carnegie Mellon University engineering professor and autonomous-vehicle safety expert. He said Tesla’s current “Full Self-Driving” (FSD) system — which actually requires a human driver paying strict attention — is “nowhere near ready to be a robotaxi.” Musk says self-driving Teslas will be ready next year, echoing unfulfilled promises dating back about a decade. He has increasingly bet Tesla’s future on robotaxis since this spring, when Reuters reported the automaker had scrapped plans for a mass-market affordable car for human drivers amid softening electric-vehicle demand and rising competition from cheap Chinese EVs. He told investors last month at a Hollywood-style robotaxi unveiling near Los Angeles that Tesla would deploy fully autonomous versions of its Model 3 and Model Y next year in Texas and California. He also unveiled a two-seat “Cybercab” robotaxi he says will start production in 2026 and cost “roughly $25,000.”  Tesla stock fell 9% the next day as some underwhelmed investors said Musk’s presentation lacked concrete product details. Since the election, however, Tesla shares have jumped more than 30%, adding nearly $200 billion in market value, as investors expect friendlier autonomous-driving and artificial-intelligence regulation. ‘BILLIONS OF MILES’ Tesla has lobbied for electric vehicle subsidies and other benefits over the years. The company for years has also supported a federal standard for autonomous driving in discussions with Congress and NHTSA, but was unable to get one in place, in part because of a divided Congress, said two people familiar with the company’s strategy. Tesla in 2018 signed a letter supporting a Senate bill that would have preempted some state regulation of autonomous vehicles, but the legislation never got a full Senate vote. In recent months, Musk has emerged as a prominent member of Trump’s inner circle. He spent election night at Trump’s Florida Mar-a-Lago club and has frequented the luxury compound since the former president’s Nov. 5 victory, according to sources and videos posted by Republican operatives. Musk has attended at least one meeting at Mar-a-Lago about the appointment of a senior cabinet position, Treasury secretary, according to a second person familiar with the matter. A Trump spokesperson did not answer questions about autonomous driving regulations or Musk’s influence but said “our federal bureaucracy will certainly benefit from his ideas and efficiency.” Under a Trump administration, NHTSA could design accommodating autonomous-vehicle standards but a key question would be whether the regulator could or would prevent states from passing their own stricter rules, three legal and regulatory experts told Reuters. A Republican-controlled Congress also could enact a national approval process that supersedes state laws. NHTSA has traditionally regulated the design of vehicles while states primarily regulate drivers and set traffic laws — a split that isn’t clear once the car itself becomes the driver. Bryant Walker Smith, a University of South Carolina law professor who focuses on autonomous driving, said NHTSA could interpret its authority more broadly if it “was being directed to achieve a certain political outcome.” Under Trump, NHTSA could clear the path for more novel designs like that of the Cybercab, which Musk says will have no steering wheel or pedals. National autonomous-vehicle regulation is more important to Tesla than its rivals because Tesla has a different business model. Musk’s strategy involves selling millions of vehicles that can drive themselves anywhere on earth. Almost all other competitors, including Waymo, operate robotaxi fleets in limited, comprehensively mapped zones of specific cities. Waymo and others build more expensive robotaxis that are equipped with suites of redundant technologies and sensors, including radar and lidar, which uses lasers to detect objects and create three-dimensional images of a vehicle’s surroundings. Tesla relies solely on “computer vision,” which seeks to use cameras like humans use eyes, with artificial intelligence that translates images into driving decisions. Asked on a July earnings call how he would overcome regulatory challenges, Musk said Tesla would have “billions of miles” showing FSD is safer than a human driver and that regulators would be “morally obligated to approve.” But Tesla so far has little to show regulators. The California Department of Motor Vehicles told Reuters Tesla had not sought driverless-testing or deployment permits required to operate driverless vehicles on public roads. California would be critical to any rollout of what Musk calls a Tesla “robotaxi network,” which he has said could offer rides in both Tesla- and customer-owned taxis. About 37% of all Teslas on U.S. roads are in California, according to industry data provider Experian (OTC:) Automotive. Waymo is now the only company with California approval to charge passengers for rides in driverless taxis. It wasn’t easy. Waymo first secured a permit in 2014 to test with a safety driver. It got a driverless-testing permit four years later, in October 2018, after logging more than 2.2 million test miles. It took three more years and 3.7 million more testing miles to secure approval from the California DMV to commercially operate autonomous vehicles — with a human driver onboard — in San Francisco and parts of San Mateo County. Waymo logged another 7.4 million miles before winning approval in August 2023 to charge customers for rides in driverless robotaxis in San Francisco, state records show. Waymo also currently operates in Los Angeles and Phoenix. GM’s Cruise also operated driverless-taxis in San Francisco but had its permit suspended after an October 2023 incident where a Cruise vehicle dragged a pedestrian who had been hit by another car for 20 feet. LESS REGULATION, MORE LEGAL RISK Tesla faces different but still-difficult challenges in less-regulated states including Texas, which has almost no restrictions and specifically forbids cities from regulating driverless vehicles. But Tesla would face immense legal liability for crashes the moment it claims its vehicles are fully autonomous. The automaker has until now blamed Tesla drivers in defending itself against lawsuits and regulatory investigations over accidents involving FSD and Autopilot. Tesla argues it warns drivers to pay attention because those systems aren’t fully autonomous. If Tesla felt comfortable deploying self-driving technology in low-regulation states like Texas, then “presumably they would be doing it,” said Smith, the University of South Carolina law professor. But “once you say there is no need for a human to pay attention, then you’re pointing the finger back at yourself” when it comes to crash liability. Insuring driverless Teslas would be another major challenge. Individual consumers can’t currently buy a fully autonomous vehicle — and so no insurance for one exists, said Bob Passmore, a vice president specializing in home and auto insurance for the American Property Casualty Insurance Association, a trade group. He said corporate autonomous vehicle operators currently get insurance through commercial policies or through specialty “surplus lines” policies for unusual cases. Many state laws are similar to Texas, allowing registered driverless vehicles mostly unfettered access to roads, according to a Reuters review of the statutes. Others impose more restrictions: Nevada requires driverless-vehicle firms to get a testing certificate and use employees as safety drivers. Kentucky and South Dakota require vehicles to be able to pull safely off the road if they encounter problems. Fifteen of the 50 U.S. states have no laws specific to driverless-vehicles, according to the Autonomous Vehicle Industry Association, a trade group. Light or nonexistent regulations could heighten the legal risk because autonomous-vehicle companies couldn’t argue they complied with strict government safety standards, said three experts in autonomous-driving law. California’s tougher regulations help protect companies securing approvals, which could provide “powerful” evidence for a defense if permitted firms get sued over crashes, said William Widen, a University of Miami law professor specializing in autonomous-vehicle liability. “The lawyers would always rather have the blessing of regulators,” he said, because it provides evidence that the company wasn’t “behaving recklessly or negligently, and that they complied with all applicable laws.” !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Trump’s victory could ease regulatory path for Musk’s robotaxi, but hurdles remain By Reuters first appeared on Forex Trader Hub.

AMSTERDAM (Reuters) – Computer chip equipment maker ASML (AS:) said on Thursday it expects its sales to grow to between 44 billion euros and 60 billion ($46.4 billion-$63.3 billion) by 2030, suggesting an average annual increase of 8%-14%, driven by strong demand for its most advanced tools. The guidance came in a statement ahead of the company’s biannual investor day at its headquarters in Veldhoven, Netherlands. ($1 = 0.9478 euros) !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post ASML says its revenue to grow to 44 billion-60 billion euros by 2030 By Reuters first appeared on Forex Trader Hub.

(Reuters) – Colombian financial conglomerate Grupo Aval (NYSE:) reported on Wednesday a more than six-fold increase in its third-quarter net profit, climbing to 415.7 billion Colombian pesos ($94.18 million). The firm’s interest income during the July-to-September period, however, fell 6.3% compared to the year-ago period to settle at 6.87 trillion pesos. The company attributed the surge in quarterly profits on higher income from investments. Grupo Aval, whose portfolio includes Colombian lenders Banco de Bogota, Banco de Occidente and pension fund Porvenir, said its cost of risk shrunk by 59 basis points from the prior year to land at 1.19%. ($1 = 4,413.79 Colombian pesos) !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Profit for Colombia’s Grupo Aval jumps six fold in third-quarter By Reuters first appeared on Forex Trader Hub.

The Australian Dollar receives support from the hawkish comments from the RBA Governor Michele Bullock. Australia’s seasonally adjusted Unemployment Rate held steady at 4.1% in October for the third consecutive month. Traders are now shifting their focus to the US October Producer Price Index (PPI) data, set to be released on Thursday. The Australian Dollar (AUD) breaks its four-day losing streak against the US Dollar (USD) following the key economic data release on Thursday. Australia’s Consumer Inflation Expectations dropped to 3.8% in November, down from 4.0% in the previous month, reaching the lowest level since October 2021. Australia’s seasonally adjusted Unemployment Rate remained steady at 4.1% in October for the third consecutive month, in line with market expectations. However, Employment Change showed only 15.9K new jobs added in October, falling short of the anticipated 25.0K. Reserve Bank of Australia (RBA) Governor Michele Bullock stated on Thursday that current interest rates are sufficiently restrictive and will remain so until the central bank is confident about inflation trends. Bullock noted the uncertainty surrounding potential actions by the US Federal Reserve and emphasized that the RBA will avoid making any hasty decisions. The US Dollar (USD) hovers around 106.53, its highest level since November 2023, driven by “Trump trades” and October’s US Consumer Price Index (CPI) data. Donald Trump’s victory in last week’s US presidential election fueled expectations of potentially inflationary tariffs and other measures from his upcoming administration, giving a strong boost to the Greenback. Australian Dollar receives support from hawkish comments from RBA bullock Federal Reserve (Fed) Bank of St. Louis President Alberto Musalem commented on Wednesday that persistent inflation challenges make it difficult for the Fed to continue easing rates. Musalem redirected attention to the overall strength of the US labor market, seeking to alleviate concerns about inflation’s resistance to the Fed’s downward pressure efforts. Federal Reserve Bank of Kansas City President Jeffrey Schmid highlighted potential challenges in the journey toward lowering interest rates. Schmid also criticized market participants who continue to hold out hope for a return to near-zero rates, calling their expectations unrealistic. US Consumer Price Index (CPI) increased by 2.6% year-over-year in October, in line with market forecasts. Meanwhile, the core CPI, which excludes the more volatile food and energy components, rose by 3.3% as expected. Australia’s Prime Minister Anthony Albanese shared in a radio interview on Wednesday that he discussed trade with US President-elect Donald Trump during a phone call last week. Albanese informed Trump that the United States holds a trade surplus with Australia and emphasized that it is in Washington’s best interest to “trade fairly” with its ally. Meanwhile, the defense minister underscored Australia’s significant investment in security. Matthew Hassan, Senior Economist at Westpac, noted “Consumers are feeling less pressure on their family finances, are no longer worried about further interest rate rises, and are increasingly confident in the economic outlook.” Last week, China’s latest stimulus measures fell short of investor expectations, further dampening demand prospects for Australia’s largest trading partner and weighing on the Australian Dollar. China announced a 10 trillion Yuan debt package designed to alleviate local government financing pressures and support struggling economic growth. However, the package stopped short of implementing direct economic stimulus measures. Morgan Stanley divides the Trump administration’s macroeconomic policies into three key areas: tariffs, immigration, and fiscal measures. The report predicts that tariff policies will be prioritized, with an anticipated immediate imposition of 10% tariffs globally and 60% tariffs specifically on China. On Thursday, Federal Reserve Chair Jerome Powell stated he doesn’t anticipate Trump’s potential return to the White House impacting the Fed’s near-term policy decisions. “We don’t guess, speculate, and we don’t assume what future government policy choices will be,” Powell noted after the bank decided to lower interest rates by 25 basis points to a range of 4.50%-4.75%, as expected. Australian Dollar trades below 0.6500 due to short-term downward pressure The AUD/USD pair trades near 0.6490 on Thursday. An analysis of the daily chart indicated short-term downward pressure, with the pair remaining below the nine-day Exponential Moving Average (EMA). Additionally, the 14-day Relative Strength Index (RSI) is below the 50 mark, reinforcing a bearish outlook. The AUD/USD pair may find support near the psychological level of 0.6400. A break below this level could increase downward pressure, potentially leading the pair to approach the yearly low of 0.6348, last reached on August 5. On the upside, immediate resistance is seen at the psychological level of 0.6500. A break above this could push the AUD/USD pair toward the nine-day EMA at 0.6550, followed by the 14-day EMA at 0.6573. Clearing these EMAs may propel the pair toward its three-week high of 0.6687, with the next psychological target at 0.6700. AUD/USD: Daily Chart Economic Indicator Employment Change s.a. The Employment Change released by the Australian Bureau of Statistics is a measure of the change in the number of employed people in Australia. The statistic is adjusted to remove the influence of seasonal trends. Generally speaking, a rise in Employment Change has positive implications for consumer spending, stimulates economic growth, and is bullish for the Australian Dollar (AUD). A low reading, on the other hand, is seen as bearish. Read more. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD. The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs. Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD. The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative. Source link The post Australian Dollar edges higher following employment data, RBA Bullock comments first appeared on Forex Trader Hub.

Coinbase Wallet will soon roll out a “Tap to Pay” crypto solution to compete against Cash App, Venmo, PayPal and other fast payment firms. Speaking to Cointelegraph, Coinbase Wallet lead and Base founder Jesse Pollak revealed the feature for Coinbase’s non-custodial cryptocurrency wallet in “internal alpha right now,” with a full rollout “coming very soon.”  “Tap to pay is going to be huge, particularly for the long tail of merchants where maybe they are currently using Cash App or Venmo or PayPal,” he said at the DevCon conference in Bangkok on Nov. 13.  “We can give them a better, faster, more global tap-to-pay experience that will work in every country around the world. I think it’s pretty huge.” The creator of Ethereum layer 2 Base hopes to see 50 countries integrated into Coinbase Wallet by the end of 2025. Jesse Pollak sits down with Andrew Fenton at the DevCon conference on Nov. 13. Source: Cointelegraph Part of that integration would involve connecting user bank accounts to Coinbase Wallet, Pollak noted. “We want people to be moving their saving, their spending, their investing onchain, because it’s going to give better rates, better interest, better economic outcomes, better outcomes for merchants because it’s a faster, better, cheaper, more global economy that works for everyone.” Bank account off-ramps will allow users to get paid in stablecoins like USD Coin (USDC) or Tether (USDT), which can be easily converted into their currency, Pollak said. While stablecoin circular economies remain small, Pollak believes the “transformation” will happen fast once merchants learn how to take advantage of cheaper payments. Base close to solving the layer 2 interoperability problem Meanwhile, Pollak says Base is looking to solve Ethereum’s layer 2 interoperability problem within the “next six months.” While several crosschain solutions exist between Ethereum mainnet and Ethereum layer 2s, Base and other Ethereum layer 2s remain fragmented. Related: Over 90% of Salvadorans don’t transact with Bitcoin: Survey But Pollak says the issue is “getting solved fast” through two important specifications — namely ERC-7683, which introduces an interoperability standard for crosschain transfers, and RIP-7755, which will enable trustless execution between chains. “They work together to basically so you can have a wallet that can execute across every L2,” Pollak said. “It will no longer be all these fragmented L2s. It’ll instead be your wallet to let you work everywhere.” “I think we’ll get those dialed in in the next six months.” A successful solution would allow token transfers between Base and other Ethereum layer 2s like Arbitrum One, OP mainnet and Blast — unlocking more use cases in an ecosystem that secures more than $42 billion of value, L2BEAT data shows. From there, Base will expand to all the other layer 1s so that users can store their assets on Base and can transact everywhere, Pollak said. Magazine: Big Questions: How can Bitcoin payments stage a comeback? Source link The post Tap and Pay crypto coming to Coinbase Wallet, L2 interoperability in months first appeared on Forex Trader Hub.

By Pete Schroeder and Lananh Nguyen NEW YORK (Reuters) -As Wall Street financiers gathered in downtown Manhattan on Wednesday, their optimism about President-elect Donald Trump’s deregulatory agenda was tempered by uncertainty over his personnel and policies. Bankers were still bullish on deals. They expected friendly regulators to be installed atop key agencies, sweeping away some onerous regulations. Yet one week after Trump’s election victory, industry experts shifted their focus to Trump’s financial policies and how they would play out. ” can’t have everything,” Erika Najarian, an analyst at UBS, told the industry conference on Tuesday. While they are benefiting from “wide open” capital markets, “we have to sort of temper enthusiasm when it comes to loan growth for next year” if interest rates stay higher for longer.  Attendees also speculated about Trump’s potential roster of financial regulators and predicted which companies stood to gain most from the new regime. “The administration is going to be this interesting mix of kind of laissez-faire, plus pro-business, plus populism,” said Jon Lieber, Eurasia Group’s head of research for the U.S. “How those three things interact are going to be happening in weird ways.” For instance, Trump is expected to scrap a proposal for higher capital requirements that was strongly opposed by banking giants. Attendees argued banks are well-positioned to push for further relief and rollbacks of Democratic priorities as economic growth remains a top Trump pledge. “Sometimes you will win and sometimes you will lose, but the CEOs frankly have to have the backbone to fight the regulators when they think they are right,” said Jelena McWilliams, the former chairman of the Federal Deposit Insurance Corporation in Trump’s first term. But the incoming president’s populist leanings could prompt him to do things like extend a Biden-era fight against banks’ so-called “junk fees” that are unpopular among consumers. But several attendees did not expect Trump to keep his populist campaign promise to cap credit card interest rates. Meanwhile, bank CEOs expressed confidence about the dealmaking outlook and the health of U.S. consumers. At Bank of America, investment bankers’ work on upcoming mergers and acquisitions is strong, while its pipelines for initial public offerings “are full and ready to go,” CEO Brian Moynihan told attendees. Meanwhile, KeyCorp (NYSE:) CEO Christopher Gorman noted consumers have 30% more money in their bank accounts today than they did before the pandemic, signaling “the economy is in good shape.” Meanwhile, banks that are already in the regulatory penalty box are unlikely to be given easier treatment by the new administration, attendees said, and intense scrutiny of lenders’ efforts to prevent money laundering and criminal financing will also remain high as geopolitical tensions escalate between the U.S. and its adversaries. Trump’s focus on crypto could also increase competition for banks, said Aaron Klein, a senior fellow in economic studies at the Brookings Institution.  While lenders may get a short-term boost in profits from lighter regulation, their business could be eroded in the long term if financial activity migrates to more lightly-regulated areas such as the fintech or crypto industries, Klein said.     climbed to a record $89,982 on Tuesday on expectations that Trump will embrace crypto. “The incoming administration has an opportunity to deliver on campaign promises,” said Dante Disparte, the chief strategy officer and head of global policy at Circle, the principal operator of stablecoin USDC. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Wall Street bankers temper optimism a week after Trump victory By Reuters first appeared on Forex Trader Hub.

By Lisa Baertlein (Reuters) – Amazon.com (NASDAQ:) and IKEA, in alliance with about three dozen other companies that depend on ocean freight, will invite shipping firms for the first time to bid on a contract in January to move their cargo on vessels powered by near-zero emissions e-fuels like e-methanol. The group known as the Zero Emissions Maritime Buyers Alliance wants to use the combined clout of its members, who have their own climate goals to meet, to create demand for e-fuels made with renewable electricity and carbon dioxide. Those fuels are in very short supply. The alliance wants to accelerate the ocean shipping industry’s move toward net-zero greenhouse gas emissions by 2050, even as U.S. President-elect Donald Trump is expected to pull out of international commitments to combat global warming. The world’s fleet moves more than 80% of global trade and contributes about 3% of the world’s GHG emissions. E-fuels are vital to fully decarbonizing ocean shipping because they have long-term potential to compete against fossil fuels on cost and supply, the alliance said. “This is how you get on path and on track to being net-zero,” said alliance member Carl Berger, who leads sustainability and export operations for Amazon Global Logistics. The group’s three- to five-year contracts for e-fuel transport are expected to begin in 2027. The cargo moved under the contract is estimated to be equivalent to at least 1.4 million 20-foot (6.1-meter) containers transported from Shanghai to Los Angeles. That would enable members to abate some 470,000 metric tons of GHG emissions that warm the planet and harm human health, according to the group, which is administered by the Aspen Institute, a U.S.-based think tank. Carriers such as Maersk, Evergreen and Ocean Network Express have ordered ships that can operate on e-methanol and are working to secure supplies of that fuel. While alliance members hope their collective action will lower the cost of e-fuels, they expect to pay an undisclosed premium to help offset the higher cost versus fossil fuel. “Once that market gets going, we’ll start to see those costs come down,” alliance CEO Ingrid Irigoyen said of e-fuel. The effort could get a boost from global regulations aimed at bringing more certainty to companies that are making the transition to greener fuels. The International Maritime Organization’s Marine Environment Protection Committee in April is scheduled to set a global regulatory structure for reducing GHG emissions in the maritime industry. That would include regulating the phased reduction of marine fuel GHG intensity and introducing a GHG pricing mechanism that, among other things, gives incentives for zero-emissions fuel use and charges a fee for each metric ton of carbon dioxide emitted. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Amazon, IKEA join other ocean cargo shippers to boost demand for new green fuels By Reuters first appeared on Forex Trader Hub.

(Reuters) – Plains All American Pipeline has agreed to pay $72.5 million to settle a lawsuit over the 2015 Refugio Beach oil spill in Santa Barbara, a filing showed on Tuesday. The spill occurred after a pipeline, which ran across California’s coastline, ruptured and spilled an estimated 126,000 gallons of oil into the ocean and on the beaches. In 2020, the California State Lands Commission and insurance firm Aspen American Insurance had sued Plains All American – the operator of the failed pipeline – alleging negligence, willful misconduct, and interference with prospective economic advantage. The state of California will receive $50.5 million from the settlement, while Aspen will get $22 million. Plains All American and Aspen Insurance did not immediately respond to Reuters’ requests for comment. “This settlement … holds the operator accountable and provides appropriate compensation to the state for the fiscal damages caused by this spill,” Joe Stephenshaw, state lands commissioner and California Department of Finance director, said in a statement. As of Sept. 30, Plains All American had estimated the total costs it has incurred or will incur related to the failed pipeline would be about $870 million. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Plains All American agrees to pay about $73 million to settle California oil spill lawsuit By Reuters first appeared on Forex Trader Hub.

By Kevin Buckland TOKYO (Reuters) – Asian stocks slumped on Wednesday as a sharp rise in U.S. bond yields unnerved investors ahead of key inflation data that could inform the pace of Federal Reserve policy easing. Short-term Treasury yields edged up after jumping to the highest since late July on Tuesday as the market reopened after the Veterans Day holiday, spurring the U.S. dollar to a more than three-month peak versus the yen. Bond yields have soared since Donald Trump was elected back to the White House last week on expectations lower taxes and higher tariffs will increase government borrowing and push up the fiscal deficit. Trump’s proposed policies are also seen by analysts as fuelling inflation, potentially impeding the path to lower Fed interest rates. Those same expectations had propelled U.S. stocks to record highs, but the rally stalled overnight as bond yields soared. “It all continues to be a part of the Trump trade, which, at its core, is about deeper deficit spending,” said Kyle Rodda, a senior financial markets analyst at Capital.com. “However, as has proven the case in other market melt-ups, a tug-of-war eventually emerges between stocks and bonds, as higher risk-free rates strangle valuations.”  paused for breath after climbing to an all-time high just below $90,000 in the previous session, with markets betting on Trump to usher in an easier regulatory environment after pledging to make the United States “the crypto capital of the planet”. The token traded at around $87,295 as of 0535 GMT. Commodities were broadly weaker as traders worried about the outlook for key consumer China, which stands to bear the brunt of Trump’s threatened trade tariffs. Stimulus announcements from Beijing so far have failed to stir much optimism over an economic revival. Hong Kong’s slid more than 1%, with a subindex of mainland Chinese property stocks slumping 2.5%. Chinese blue chips were slightly lower. and South Korea’s Kospi sagged 1.8% and 2.2%, respectively, while Australia’s stock benchmark fell 1% under the weight of commodity shares. U.S. pointed about 0.2% lower following a 0.3% decline overnight. Pan-European STOXX 50 futures eased 0.3%. The two-year Treasury yield stood at 4.351% after leaping to 4.367% on Tuesday for the first time since July 31. The 10-year yield hovered around 4.43%, not far from the four-month high of 4.479% reached a week ago in the immediate aftermath of Trump’s sweeping victory. “There is a significant layer of technical resistance at 4.48%-4.50% in U.S. 10-year yields,” said Tony Sycamore, an analyst at IG. “A breach of this level on stronger-than-expected inflation tonight could pave the way for them to extend their gains towards resistance at 4.75% – a move that stock markets might find hard to ignore.” The dollar edged up to as high as 154.94 yen for the first time since July 30 before last changing hands at 154.88 yen. That put the currency pair, which tends to track long-term U.S. yields, on the cusp of the 155 yen per dollar level that many market participants consider a trigger point for verbal intervention by Japanese authorities. Japan’s finance ministry currency czar Atsushi Mimura said last week that officials “are ready to take appropriate actions if necessary when excess moves are seen.” Technically, if the dollar were to break above 155 yen, “there’s a blank space from 155 to 158, so the pair could rise quickly and test 158, where Japan’s Ministry of Finance intervened in May,” said Shoki Omori, chief Japan desk strategist at Mizuho (NYSE:) Securities. The – which measures the currency against the yen, euro and four other top rivals – stood at 106.03, not far from Tuesday’s high of 106.17, the strongest level since May 1. Traders currently lay 62% odds for the Fed to cut rates by a quarter point on Dec. 18 at the conclusion of its next policy meeting, according to CME Group’s (NASDAQ:) FedWatch Tool. A week earlier, the probability was 77%. A hot reading of the U.S. consumer price index (CPI) later in the day could see those odds reduced further, with economists projecting a 0.3% monthly rise in the core gauge. The euro changed hands at $1.0614, after dipping to $1.0595 overnight, a one-year trough. Europe, like China, is seen as hurting more under Trump tariffs, with the incoming U.S. President previously saying the bloc would “pay a big price” for not buying enough U.S. exports. “Given the downside momentum that’s in play, backed by clearly ever-divergent policy paths expected from Fed and ECB policy, as well as incoming tariff risk, it takes a brave soul to bet against the USD trend at present,” said Chris Weston, head of research at Pepperstone. The People’s Bank of China pulled the yuan off a three-month low versus the dollar by setting a firmer-than-expected official guidance for the exchange rate, signalling growing discomfort over the currency’s recent rapid decline. The advanced about 0.1% to 7.2340 per dollar, after dropping as low as 7.2559 in the previous session. Copper prices edged lower on Wednesday, tracking a stronger dollar and muted demand prospects in top metals consumer China. Three-month on the London Metal Exchange was down 0.1% at $9,130 per metric ton, and had dipped to $9,107 per ton on Tuesday, its lowest level since Sept. 11. continued to wallow near the lowest levels this month after OPEC on Tuesday cut its forecast for global oil demand growth this year and next, highlighting weakness in China and some other regions. futures added 0.3% to $72.07 a barrel, while U.S. West Texas Intermediate (WTI) crude edged up 0.2% to $68.27, not straying far from Tuesday’s lows, which were the weakest levels since Oct. 30. Gold attempted to find its feet, rising 0.3% to around $2,604 per ounce, following its slump to a nearly two-month low of $2,589.59 in the previous session, pressured by dollar strength. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Stocks struggle on unease about higher bond yields as focus turns to US inflation By Reuters first appeared on Forex Trader Hub.

MUNICH (Reuters) – Siemens (ETR:) Energy has not proposed a dividend for the 2024 fiscal year, citing limitations to its payout policy as a result of obtaining project guarantees last year that are backed by the German government. A year ago, Berlin supported Siemens Energy with guarantees worth 7.5 billion euros ($8 billion) as part of a deal with other stakeholders to help the troubled energy company fulfil its order book. The guarantees are part of a package totalling 15 billion euros agreed with private banks and other stakeholders and also impose a pause on dividends and higher level bonuses at Siemens Energy, the economy ministry said at the time. ($1 = 0.9422 euros) !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Siemens Energy won’t propose dividend for fiscal year 2024 By Reuters first appeared on Forex Trader Hub.

WASHINGTON (Reuters) -U.S. President-elect Donald Trump said on Tuesday Elon Musk and former Republican presidential candidate Vivek Ramaswamy will lead the newly created Department of Government Efficiency. Musk and Ramaswamy “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” Trump said in a statement. Trump said their work would conclude by July 4, 2026, adding that a smaller and more efficient government would be a “gift” to the country on the 250th anniversary of the signing of the Declaration of Independence. The appointments reward two Trump supporters from the private sector. Musk leads electric car company Tesla (NASDAQ:), social media platform X and rocket company SpaceX, while Ramaswamy is the founder of a pharmaceutical company who ran for the Republican presidential nomination against Trump and then threw his support behind the former president after dropping out. Musk gave millions of dollars to support Trump’s presidential campaign and made public appearances with him. Trump had said he would offer Musk, the world’s richest person, a role in his administration promoting government efficiency. The acronym of the new department – DOGE – coincides with the name of the cryptocurrency that Musk promotes. “This will send shockwaves through the system, and anyone involved in government waste, which is a lot of people!” Musk said, according to Trump’s statement, which called the new government initiative “potentially ‘The Manhattan Project’ of our time,” referring to the U.S. plan to build the atomic bomb that helped end World War Two. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Trump names Musk, Ramaswamy to lead newly formed Department of Government Efficiency By Reuters first appeared on Forex Trader Hub.

EUR/USD trimmed further into the low end on Tuesday. Fiber lost a third of a percent as the pair chalks in a third straight losing day. US CPI inflation figures loom ahead on Wednesday. EUR/USD trimmed further into low the side on Tuesday, shedding another third of a percent. Fiber briefly tested below 1.0600 during the day’s market session, and the pair is poised for further losses after a rapid seven-week decline from multi-month highs set just above 1.1200 in September. A lack of meaningful EU-centric economic data has left Greenback flows front and center of the Fiber chart, though Euro traders will be looking ahead to Thursday’s pan-EU Gross Domestic Product (GDP) update. The EU’s third quarter GDP is expected to confirm the preliminary print of 0.4% QoQ, and the annualized figure is forecast to show that Europe grew by an unremarkable 0.9% YoY. US CPI inflation figures for the month of October are slated to release on Wednesday, and markets are expecting a rebound in annualized headline consumer price growth. Full-fat CPI inflation is forecast to tick higher to 2.6% YoY compared to September’s print of 2.4%. Core CPI inflation is expected to hold steady at 3.3% YoY. The monthly figure for both inflation categories are broadly expected to hold flat month-on-month. EUR/USD price forecast The EUR/USD daily chart shows a clear bearish trend, with the pair trading well below the 50-day EMA (1.0895) and the 200-day EMA (1.0888). The downward momentum has accelerated after EUR/USD broke below these moving averages, both of which are now acting as resistance levels. The alignment of the shorter-term EMA below the longer-term EMA further signals that the bears are firmly in control, confirming a downtrend in the near term. Adding to the bearish bias, the MACD indicator is showing strong downward momentum. The MACD line is below the signal line, with both moving deeper into negative territory. The histogram has expanded significantly on the downside, indicating that bearish momentum remains robust. This setup on the MACD suggests that sellers are currently dominant and that buyers have yet to step in with sufficient strength to reverse the downward trend. Without a bullish crossover or a reduction in the histogram’s size, the bearish trend is likely to persist. In terms of support levels, EUR/USD is approaching the psychological level of 1.0600, which could offer some relief to the downside pressure. If this support level fails to hold, the pair may target the 1.0500 level, where further buying interest might emerge. For the bulls to regain control, a break back above the 200-day EMA is essential, but given the current technical structure, such a recovery seems unlikely in the short term. As it stands, the bearish outlook remains intact, with downside risks prevailing in the near term. EUR/USD daily chart Euro FAQs The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%). The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde. Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money. Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy. Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.   Source link The post EUR/USD pierces 1.06, finds lowest bids in a year first appeared on Forex Trader Hub.

Artificial intelligence firm Genius Group Limited surged 66% in a day after committing to a MicroStrategy-emulating “Bitcoin-first” strategy — which will see the cryptocurrency become its primary treasury asset. The play will involve committing 90% or more of the company’s current and future reserves to be held in Bitcoin (BTC), starting with a $150 million at-the-market (ATM) offering to acquire an initial target of $120 million in Bitcoin.  Genius Group said on Nov. 12 that it will also enable Bitcoin payments for its “EdTech” platform and launch a Web3 education series for students to learn about Bitcoin and other cryptocurrencies. Genius Group aims for 90% of its reserves to be held in Bitcoin. Source: Genius Group Genius Group (GNS) shares closed Nov. 12 up 66.4% at $1.05 and continued to rise 62.86 to $1.71 in after-hours trading, according to Google Finance.  “The compelling case that we believe Michael Saylor and MicroStrategy have made for public companies to invest in Bitcoin as their primary treasury reserve asset is one that we fully endorse,” said Thomas Power, a director at Genius Group. “We believe with our Bitcoin-first strategy, we will be among the first NYSE American listed companies to fully embrace MicroStrategy’s Bitcoin strategy for the benefit of our shareholders.” The Singapore-based company was founded in 2002, its AI-powered education tech is aimed at all levels, from primary, secondary and tertiary students, to entrepreneurs, businesses and government. It became a listed company on the NYSE American in 2022.  It said the new policy comes after a board restructuring to include a number of blockchain and Web3 industry experts.  Related: Chinese microchip company says it’s now accepting Bitcoin as payment  “Genius Group is focused on educating students for the exponential technologies of the future. We see Bitcoin as being the primary store of value that will power these exponential technologies,” added Power.  The firm follows a path carved out by Michael Saylor’s MicroStrategy, whose Bitcoin holdings have now crossed 279,420 Bitcoin, currently worth $24.5 billion with Bitcoin at around $88,000.  Other firms that have also joined the Bitcoin treasury bandwagon this year include Semler Scientific and Metaplanet, which each hold over 1,000 Bitcoin. Magazine: AI agents trading crypto is a hot narrative, but beware of rookie Source link The post AI firm Genius Group surges 66% after ‘Bitcoin-first’ treasury strategy first appeared on Forex Trader Hub.

By Svea Herbst-Bayliss NEW YORK (Reuters) – Hedge fund Brigade Capital is receiving a $300 million investment from Blackstone (NYSE:) to help build its new private credit strategy and expand its collateralized loan obligations (CLO) platform, two people familiar with the matter said. Brigade, an established credit investment specialist that made headlines earlier this year with a joint bid for department store Macy’s (NYSE:), is building expertise in the hot private credit market where some $2 trillion in loans are being made to corporations by non-banks. The Multi-Asset Investing unit of Blackstone will allocate $150 million to the new Brigade strategy. Brigade raised some $500 million this year for the strategy and plans to focus on opportunities in the lower middle market, where companies generate between $10 million and $50 million in earnings before interest, taxes, depreciation and amortization, one of the sources said. Blackstone and Brigade representatives declined to comment. The allocation comes from the unit’s Strategic Alliance Fund IV which is run by David Ben-Ur and has over $1 billion in assets. Brigade is the third manager being seeded in Fund IV. Previously Blackstone seeded London-based Astaris Capital Management through the fund. Brigade is an established manager with some $28 billion in assets and is expanding in the private credit market. In total, Brigade has raised some $1.5 billion to build out its private credit platform, including commitments for future funds, one of the sources said. The lower middle market is full of lending opportunities with higher spreads and yields because there is less competition. Some examples of lower middle market borrowers include vacation rental company Awayday and mattress and bedding retailer Saatva. Brigade’s efforts in private credit began in earnest when it poached Jenny Lee from JPMorgan Chase (NYSE:) and Jim Wolf from Whitehorse Capital two years ago to spearhead the strategy. Their strong networks and years of experience are expected to help source smaller deals that are often tougher to find, one of the sources said. Blackstone is also allocating $150 million to support Brigade’s existing CLO business with dedicated equity commitments for new CLOs globally. The capital is coming from the Multi-Asset Investing unit’s Absolute Return platform, which is also run by Ben-Ur. The Brigade CLO business currently has some $11 billion in assets across 25 deals in the U.S. and Europe. CLOs offer a diversified exposure to the broadly syndicated loan market and CLO equity is structured to take advantage of volatility in the loan market given non-mark-to-market leverage and term financing. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Exclusive-Blackstone backs Brigade with $300 million investment for private credit, CLOs By Reuters first appeared on Forex Trader Hub.

By David Ljunggren OTTAWA (Reuters) -Canada on Tuesday moved to end labor disputes at the country’s two biggest ports of Vancouver and Montreal, citing the economic damage and the potential for driving away trading partners. The move marked the second time in a few months that the Liberal government has stepped in to end a dispute. In August it ordered an end to work stoppages at the country’s two largest railway companies. Labour Minister Steven MacKinnon said he had directed the country’s labor relations board to order an end to the strike and impose binding arbitration. “As the economic losses threaten the country and begin to mount, it is up to the government to ensure that … we can get on with the economic life of this country and avoid layoffs and other carnage,” he told a press conference. “Canadians have a limited tolerance right now for economic self-harm.” The dispute – which MacKinnon said was affecting more than C$1.3 billion ($932 million) in value of goods every day – had already hit shipments of canola oil, forest products and other goods. The Canada Industrial Relations Board, which is independent but takes direction from Ottawa, would take a few days to issue the relevant orders, MacKinnon said. The left-leaning government favors solving labor disputes through collective bargaining, but MacKinnon said he had been forced to intervene after federal mediators reported the talks at Montreal and Vancouver were at an impasse. The Montreal Longshoremen’s Union rejected a final offer made for a new labor contract, leading to a lockout being declared. Exports of canola oil and forest products from West Coast ports, including Vancouver, have halted. “These work stoppages are impacting our supply chain, hundreds of thousands of Canadian jobs, our economy and our reputation as a reliable international trading partner,” said MacKinnon, who complained that employers and unions had not been acting urgently enough. “I’ve directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties in settling their collective agreements by imposing final and binding arbitration,” he said. ($1 = 1.3943 Canadian dollars) !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Canada moves to end labor disputes at port, cites economic damage By Reuters first appeared on Forex Trader Hub.

(Reuters) – Meta Platforms (NASDAQ:) plans to offer Instagram and Facebook users in Europe the option to receive “less personalized ads,” the tech giant announced on Tuesday, in an effort to allay regulators’ mounting concerns. The Menlo Park, California-based company said it is implementing these changes in response to demands from EU regulators. Over the coming weeks, people in the EU who use the company’s social media platforms for free with ads, will be able to choose to see ads based on what Meta calls “context”- content that a user sees during a particular session on the platforms. These ads will also target users based on age, gender, and location, with some being unskippable for a few seconds. Meta also plans to reduce the price of ad-free subscriptions by about 40% for European users. This move comes as European regulators intensify efforts to curb Big Tech’s power and level the playing field for smaller firms, including through the landmark Digital Markets Act (DMA) which came into force earlier this year. The European Union law aims to make it easier for people to move between competing online services like social media platforms, internet browsers and app stores. Last month, Europe’s top court ruled that Meta must restrict the use of personal data harvested from Facebook for targeted advertising, supporting privacy activist Max Schrems. The European Union did not immediately respond to a Reuters request for comment. The developments were first reported by the Wall Street Journal. Earlier in November, Reuters reported that Apple (NASDAQ:) is set to be fined by the European Union’s antitrust regulators under the bloc’s landmark rules aimed at managing Big Tech’s influence, making it the first company to be sanctioned. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post Meta to offer less personalized ads in Europe to appease regulators By Reuters first appeared on Forex Trader Hub.

Crude oil is one of the world’s most widely traded commodities. Its high liquidity provides profitable opportunities using long-term and short-term strategies across different market conditions and economic cycles. However, not all individuals can easily access the crude oil market. Some regulators restrict commodity trading by retail traders, often because they believe it is too risky because of leverage and volatility. This article explores whether crude oil trading is legal in different countries. One of the aims of all regulators is to protect investors, which often includes protecting them against excessive risk. Commodity trading, including crude oil trading, is usually leveraged, for example, through futures contracts, which makes it inherently riskier. As a result, some regulators want to restrict or ban commodity trading by retail traders and only allow institutions or high-net-worth individuals to trade it. Therefore, each regulator will have differing standards about allowing brokers to let their clients trade commodities. Yes, Crude Oil trading is legal in the USA: Most crude oil trading in the US is done through futures contracts traded on regulated exchanges, such as the Chicago Mercantile Exchange (CME). Traders can only access US futures contracts through CFTC or NFA-regulated brokers. Crude oil futures and options contracts are 1000 barrels for standard contracts, 500 for mini contracts, and 100 for micro contracts. Margin requirements are approximately 10%. Another popular way to trade crude oil is through Exchange Traded Funds (ETFs) that track its price. Some individuals trade the stocks of companies in the energy or oil sectors, which will be highly correlated to crude oil prices. For example, when the price of crude oil and other energy commodities increases, oil and gas companies’ share prices also tend to move up. The US has multiple regulators overseeing its financial markets: the SEC, FINRA, CFTC, NFA, and others. However, the regulators overseeing the futures markets where most retail crude oil trading occurs are the Commodity and Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). All Futures brokers serving US-based customers must register with CFTC and operate under their rules. The CFTC is a US regulatory agency operating under the legal framework of the Commodity Exchange Act (CEA). The agency regulates U.S. derivatives, including futures, spot Forex, swaps, and selected option contracts. However, the CFTC delegates much of its oversight operations to the National Futures Association (NFA), a self-regulatory organization. The National Futures Association is the self-regulatory organization for U.S. derivatives, including futures contracts such as Crude Oil futures. CFTC & NFA standards help give traders a transparent and fair marketplace and minimize the risk of fraud. CFTC and NFA’s functions include: Issuing licenses allowing eligible brokers to offer services in the US. Futures brokers state their CFTC and NFA registration on their websites. Individuals can check a broker’s NFA regulations on the NFA’s verification portal, Background Affiliation Status Information Center (BASIC). The CFTC also maintains a “RED list” containing names of foreign entities that appear to act in a capacity requiring CFTC registration but are NOT CFTC-registered. Ensuring the industry’s financial stability by requiring brokers to have minimum operating capital, including maintaining a $20 million security deposit—significantly higher than any other global regulator.  The high threshold results in only large and established companies choosing to be CFTC-regulated, leaving smaller brokers to focus on different regions. Trade integrity. Trade execution and slippage in regulated exchanges must follow set procedures and reflect actual market conditions. Segregated accounts. This means separating client funds from the broker’s operations. It is one of the most effective measures to protect client capital. Security. Brokers must protect the reliability and confidentiality of customer orders and account information. Fraud prevention. The CFTC has an active Division of Enforcement (DOE) that has reclaimed billions of dollars stolen through fraudulent practices by financial institutions. Its whistleblower program directly accepts complaints from the public about suspicious activity . Yes, Crude Oil trading is legal in India: Indians can trade crude oil through futures and options contracts on the Mumbai-based Multi Commodity Exchange (MCX), India’s largest derivatives exchange. MCX crude oil futures and options contracts trade in units of 100 barrels for the main contract and 10 barrels for the mini contract. The margin requirement is a minimum of 10%. Individuals can access crude oil futures and options contracts on the MCX through SEBI-regulated brokers. The Securities and Exchange Board of India (SEBI) is India’s financial markets regulator and regulates the Multi Commodity Exchange (MCX), where brokers can access crude oil futures for their clients. SEBI’s core function is “to protect the interests of investors in securities and to promote the development of and to regulate the securities market.” To achieve that, SEBI: Ensures investors receive accurate and timely information about the securities markets. Develop the secondary market by introducing initiatives to promote liquidity, transparency, and efficiency. Promotes fair practices and acts against fraudulent and unfair trade practices. SEBI’s powers cover three main areas that allow it to function effectively as a regulator: quasi-judicial, quasi-executive, and quasi-legislative. Quasi-judicial powers: SEBI can adjudicate disputes by conducting hearings, examining evidence, and passing orders. It can use consent orders to facilitate settlements between parties and enforce compliance without resorting to prolonged legal proceedings. Quasi-executive powers: SEBI can enforce compliance with securities laws and regulations. Its available mechanisms include imposing fines and penalties. It can gather information and inspect records to investigate potential securities law violations. Quasi-legislative powers: SEBI has the authority to create rules and regulations for the securities market. This has made SEBI a dynamic regulator that can adapt to emerging challenges and changing market dynamics. Yes, it is legal to trade crude oil in Indonesia. Since there are no domestic Indonesian exchanges for crude oil trading, Indonesians can use brokers that access overseas exchanges, such as the USA’s Chicago Mercantile Exchange, which carries crude oil futures and options. If you are an Indonesian trader using an offshore broker, the broker’s regulatory jurisdiction and registration will determine its rules, not Indonesian regulations. I recommend always choosing a broker covered by a strong regulator, particularly brokers registered with US, Canadian, UK, or Australian regulators. These countries have top-tier regulators that require brokers to operate at the highest global standards to protect customers’ capital and provide fair trading conditions. For example, brokers operating under these countries’ regulators will always have segregated accounts that separate client funds from the brokers’ operations. One advantage of considering overseas brokers is that there is more choice. For example, some brokers offer commodities, Forex, equities, and crypto, all in one account. You can choose brokers offering different market access, minimum account sizes, trading platforms, levels of customer service, etc. Indonesia’s regulators’ primary focus is ensuring the securities industry’s stability, market transparency, and consumer protection. There are two central Indonesian financial regulators: Otoritas Jasa Keuangan (OJK), also known as the Financial Services Authority, and the Bank Indonesia (BI). The OJK/FSA is the primary regulator for the financial markets. Yes, crude oil trading is legal in Canada. There are more ways for Canadians to access the markets than in most other countries. Looking at crude oil trading in particular: Canadians can open accounts with US-based Futures brokers regulated by the CFTC & NFA. This gives access to crude oil futures listed with the Chicago Mercantile Exchange (CME). Canadians can trade crude oil ETFs that closely track the price of crude oil. Contracts for Difference (CFDs) are allowed in Canada. CFD brokers typically offer a full range of commodities, including crude oil trading. Canadians actively trading commodities such as crude oil can choose between a US-based Futures broker or a CFD broker. Each has distinct features. US-based futures brokers usually require account deposits in U.S. dollars. Converting currencies at retail banks can become expensive for traders who make frequent deposits and withdrawals. Canadian CFD brokers let clients keep account balances in Canadian Dollars. Because money does not cross a border, there may be fewer charges for making deposits and withdrawals. Futures brokers typically have higher minimum account balances than CFD brokers. Futures contracts generally have tighter spreads than CFDs. CFD brokers often offer hundreds of securities in different markets, such as global equities, crypto, major Forex pairs, non-USD and exotic Forex pairs, agricultural commodities, energy, metals, bonds, etc. This prevents traders from opening multiple accounts to access many different markets. Futures are traded through regulated exchanges. CFDs are over-the-counter markets where customers rely on the broker’s pricing and executions, which can vary between brokers. Some Canadians feel more comfortable using a Canadian broker with local customer service and domestic regulations. I live in Toronto and have personally met my CFD broker’s customer service representative! The Canadian Investment Regulatory Organization (CIRO) oversees Canadian retail brokers, including CFD brokers that offer crude oil trading. They aim to “promote healthy capital markets by regulating fairly and effectively so that investors are protected and confident investing in their futures.” CIRO is a relatively new regulator, created in 2023 after combining the functions of two previous regulators: the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA). According to CIRO, it “sets and enforces rules for the business and financial conduct of Canadian investment and mutual fund firms and their representatives across Canada. All registered representatives are subject to high proficiency standards, training, and supervision by member firms. The compliance teams examine firms for compliance with conduct, trading, prudential, and operating rules and work with them to ensure they continually meet high standards while providing financial services to their clients. Enforcement staff investigate possible breaches of CIRO rules and discipline firms and individuals when regulatory misconduct is identified. Discipline can include fines, suspensions, and permanent bans or termination for individuals and firms.” Crude oil is one of the most highly traded and liquid commodities, offering profitable trading opportunities in longer and shorter timeframes and across different market conditions and economic cycles. Many countries’ regulators allow crude oil trading through futures, Exchange Traded Funds (ETFs), or Contracts for Difference (CFDs). The US-based Chicago Mercantile Exchange (CME) lists crude oil futures and options that can be accessed globally through CFTC and NFA-regulated brokers. CFDs have more flexibility by offering more flexible contract sizes than futures. However, CFDs sometimes have higher spreads than futures contracts. Not all countries allow CFDs, particularly the US. Source link The post Is Oil Trading Legal? Commodity Trading Legal Issues Reveale first appeared on Forex Trader Hub.

By Maggie Fick and Yadarisa Shabong (Reuters) -Drugmaker AstraZeneca (NASDAQ:) lifted its annual sales and profit forecast for the second time this year on Tuesday, helped by strong demand for its cancer and rare diseases medicines, after third-quarter results beat estimates. The London-listed company doubled down on plans for U.S. expansion, announcing $2 billion in new spending on research and development and manufacturing plants. That brings the total it will invest in the country to $3.5 billion by the end of 2026. The new investments will expand manufacturing facilities in Maryland, Texas and in California and create 1,000 high-skilled jobs in the country, it said. “Our multibillion dollar investment reflects the attractiveness of the business environment together with the quality of talent and innovation capabilities here in the United States,” CEO Pascal Soriot said in a statement the week after Donald Trump won the U.S. election. Soriot also said the company aims to enhance development of cutting-edge therapies and “support the United States leadership in healthcare innovation”. AstraZeneca now expects high-teens percentage growth in 2024 revenue and core earnings per share, from a previous forecast of mid-teens percentage growth at constant currency rates. Shares rose 2% in early trading before paring gains, and by 0900 GMT were down 0.1%. Its shares are down nearly 6% this year, underperforming a near 9% rise in the wider European healthcare sector. Shares have fallen about 17% in the past three months, reflecting market unease with the company’s Chinese business amid multiple investigations by national authorities. CHINA CONCERNS Last week the company said its China president Leon Wang had been detained by Chinese authorities, and that it did not know why. “We take the matters in China very seriously,” Soriot said on Tuesday. The company has invested heavily in China, the world’s second-largest pharmaceuticals market after the U.S., with the local business contributing 13% of group revenue last year. AstraZeneca said last week its chief financial officer had briefed sell-side analysts on Nov. 6 to quell concerns about a fraud probe expanding in China following a report by financial media company Yicai a day earlier that led its shares to plunge more than 8%. The company reiterated on Tuesday that it has not received notification from Chinese authorities that the company itself is under investigation, but if requested will cooperate with the Chinese authorities. Third-quarter revenue in China came in at $1.7 billion, up from $1.5 billion a year earlier, representing growth of 15% at constant exchange rates. U.S. revenue in the quarter was $6 billion, representing growth of 23% at constant exchange rates. AstraZeneca also said, along with its partner Daiichi Sankyo, it has submitted a new biologics license application for the accelerated approval in the U.S. for its experimental precision drug datopotamab deruxtecan. The approval relates to use of the drug for the treatment of adult patients with a type of non-small cell lung cancer who have received prior therapies. Analysts and investors saw the new application as positive, saying it increases the chance of approval of the medicine for that patient group. !function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,'script','https://connect.facebook.net/en_US/fbevents.js'); Source link The post AstraZeneca lifts 2024 outlook after Q3 beat, doubles down on U.S. investments By Reuters first appeared on Forex Trader Hub.