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☆ Insurers shun many ships carrying goods through the Red Sea as attacks continue
▼ + stars: | 2024-01-17 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

The crisis in the Red Sea threatens to damage the economy by increasing prices on consumers and delaying the shipment of goods. A Houthi official vowed on Wednesday that attacks on “Israeli-linked” vessels in the Red Sea as well as the Arabian Sea will continue. Ikea also does not foresee any product shortages from the Red Sea problems. “Shippers are now much better at using alternative ways of moving their goods around the world,” Zandi said. “We have not seen the situation in the Red Sea translate into material movements in prices in the US such as consumer goods and gasoline prices,” Schwartz said.

Persons: ”, Marcus Baker, Marsh McLennan, Baker, Vicent Clerc, ” Clerc, CNN’s Richard Quest, Mark Zandi, Zandi, Kristalina Georgieva, Quest, ” Zandi, Stephen Schwartz, ” Schwartz Organizations: CNN, US, US Central Command, Maersk, International Monetary Fund, Oxford University . Shipping, P, Moody’s, Global, IMF, Economic, Wednesday, Ikea, Wells, Wells Fargo Global Receivables, Trade Finance Locations: Israel, Marsh, Suez, Africa, China, Davos, Switzerland, “, Asia, Europe, Germany, Wells Fargo, Iran

☆ Fears of prolonged Red Sea shipping crisis fuel inflation fears, as oil, retail cargo delays rise
▼ + stars: | 2024-01-17 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +8 min

"If so, we expect the soaring freight rates and equipment shortage will continue till the third quarter," it advised clients. This would be on top of the revenue lost by diverted container vessels which are required to pay between $500,000-$600,000 per transit. "However, given the longer transit times vessels are experiencing, the market may face a shortage of empties across Asia until sailings normalize." Evelyn Fornes, Home Depot spokeswoman, said it is working with logistics carriers to find alternate routes to limit any impact from the Red Sea conflict. East Coast freight rates soar While freight rates for U.S. West Coast ports have yet to spike, freight rates for the East Coast and Gulf are up.

Persons: Folden, Shell, Jean, Charles Gordon, Nyttingnes, Torm, Euronav, Tom, Hafnia, Andy Lipow, Kuehn, Nagel, Ami Daniel, Goetz Alebrand, Stephen Schwarz, Paolo Montrone, Kuehn + Nagel, Alan Baer, Baer, Evelyn Fornes, Fornes, Lane Organizations: Galaxy, Houthis Media, Getty Images, Anadolu, Getty, U.S, Clarksons Securities, Honour Lane Shipping, Wall Street, Shell, Suez, Authority, Lipow Oil Associates, Logistics, CNBC, DHL Global, Asia Pacific, Kuehn, USA, Home, Costco, Walmart, Home Depot, Volvo, Michelin, Ikea, East, U.S . Locations: Iran, Yemen, Anadolu, Hafnia, Ardmore, Suez, Israel, Americas, Asia, Europe, Wells Fargo, Red, U.S, East Coast, U.S . West Coast, Gulf, East, West, West Coast

Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. The surge in their borrowing from Chinese banks has catapulted the yuan past the euro into becoming the second-biggest currency used in global trade finance, providing a fillip to Beijing's ambitions to internationalize the yuan. "Panda bonds are steadily promoting the renminbi's function as a funding currency", the People's Bank of China (PBOC) said a report last month. German automaker Volkswagen Group (VOWG_p.DE) told Reuters it will use its inaugural 1.5 billion yuan panda bond proceeds only for its onshore China business. ($1 = 7.2421 Chinese yuan renminbi)Reporting by Samuel Shen and Rae Wee Editing by Vidya Ranganathan and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

Persons: Yuan, Dado Ruvic, Fiona Lim, Lim, SWIFT, Mercedes, Yuan internationalisation, Mark Williams, It's, Maybank's Lim, Williams, Samuel Shen, Rae Wee, Vidya Ranganathan, Kim Coghill Organizations: REUTERS, Rights, BMW, Crédit Agricole S.A, National Bank of Canada, People's Bank of China, Standard Chartered Bank, Bank of China's, Volkswagen Group, Reuters, Benz Group, Capital Economics, Thomson Locations: Rights SHANGHAI, SINGAPORE, China, Hong Kong, Asia, Russia, Argentina, Pakistan, Nigeria

☆ IMF board approves $178 mln loan to Malawi
▼ + stars: | 2023-11-15 | by ( ) www.reuters.com time to read: +2 min

Malawian Finance and Economic Affairs Minister Sosten Gwengwe speaks at the State Department in Washington, DC, U.S., September 28, 2022. Kevin Wolf/Pool via REUTERS/File Photo Acquire Licensing RightsBLANTYRE, Nov 15 (Reuters) - The International Monetary Fund's executive board has approved a loan of about $178 million for Malawi, with an immediate disbursement of about $35 million, the IMF said in a statement on Wednesday. "The decision is a big breather for us and our economy," Finance Minister Simplex Chithyola Banda said in a telephone interview with Reuters. The IMF programme will unlock more financial support from development partners, Malawian President Lazarus Chakwera said in a televised national address late on Wednesday. The World Bank could give Malawi $60 million for trade finance, a $217 million package linked to fiscal reforms and $250 million for agriculture, Chakwera said.

Persons: Sosten Gwengwe, Kevin Wolf, Banda, Lazarus Chakwera, Chakwera, Frank Phiri, Anait Miridzhanian, David Gregorio, Sandra Maler Organizations: Finance, Economic Affairs, State Department, Rights, Monetary Fund's, Malawian, Simplex, Reuters, IMF, Bank, Thomson Locations: Washington , DC, Rights BLANTYRE, Malawi

☆ HSBC CEO says even Chinese firms are diversifying from China at Bloomberg forum
▼ + stars: | 2023-11-08 | by ( Manav Tanneeru | Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Diversification away from China is increasing, and it doesn’t just affect foreign companies, according to HSBC CEO Noel Quinn. HSBC (HSBC) is the world’s largest trade finance bank, with a focus on Asia, meaning it helps importers and exporters carry out transactions. For decades, China has enjoyed rapid economic growth thanks to its status as a global trade and manufacturing powerhouse. So its supply chains and its supply to the world is going to change over the next 10 to 15 years,” noted Quinn. De-risking, meanwhile, may be harder to detect, as “there is no single economic data series that can effectively capture companies’ decisions to intentionally reduce their real economic exposure to China,” according to the report.

Persons: Noel Quinn, Quinn, ” Quinn, ”, — Organizations: Hong Kong CNN, HSBC, Bloomberg Locations: China, Hong Kong, Singapore, Asia, Vietnam, India

☆ Commerzbank shares fall after report on strategy review
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Kai Pfaffenbach/File Photo Acquire Licensing RightsFRANKFURT, Sept 22 (Reuters) - Shares of Commerzbank (CBKG.DE) were down 3.4% late on Friday after a German newspaper reported details of the lender's new strategy plans to be announced in November. Shares of the bank were down by only around 0.4% before publication of the report. It plans to announce its strategy review on Nov. 8. Like many banks, Commerzbank has been benefiting from a rise in interest rates and the income that generates. Reuters GraphicsThe bank's chief executive Manfred Knof said this week that the main focus of the new strategy would be growth in its customer business.

Persons: DAX, Kai Pfaffenbach, Commerzbank, Manfred Knof, Bettina Orlopp, Tom Sims, Rachel More, Friederike Heine, Kirsten Donovan Organizations: REUTERS, Rights, Thomson Locations: Frankfurt, Germany, Commerzbank

☆ Asia Development Bank discusses the implications of an expanding gap in global trade finance
▼ + stars: | 2023-09-05 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAsia Development Bank discusses the implications of an expanding gap in global trade financeTighter credit due to higher interest rates is a major barrier to trade finance, says Steven Beck, Asia Development Bank's head of trade finance.

Persons: Steven Beck Organizations: Asia Development Bank Locations: Asia

☆ Bernstein sees a $5 trillion opportunity in blockchains for financial markets
▼ + stars: | 2023-06-21 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

If financial incumbents want to be part of the modernization of financial markets, they need to adopt blockchains, according to Bernstein. Beyond tradeable assets like bitcoin, however, there's an opportunity over the next five years for financial firms in tokenizing real-world assets on blockchains, the firm said in a note this week. "Tokenization, we believe, will transform financial markets over the next decade," analyst Gautam Chhugani said in the Tuesday note. "We forecast ~$5 trillion of real-world financial assets will be tokenized on blockchains over the next 5 years." There is also a big opportunity for new business verticals in custody, trading, trade finance and enterprise consulting, Chhugani said.

Persons: Bernstein, Cryptocurrencies, there's, Gautam Chhugani, Chhugani, Hamilton Lane, Franklin Templeton, Michael Bloom Organizations: Investment, KKR, Securitize, JPMorgan Locations: tokenizing, stablecoins

☆ JPMorgan invests in financial technology provider Cleareye.ai
▼ + stars: | 2023-06-20 | by ( ) www.reuters.com time to read: +1 min

LONDON, June 20(Reuters) - JPMorgan (JPM.N) has made a strategic investment in Cleareye.ai, a financial technology firm focused on trade finance, the companies said on Tuesday. The parties, which entered into a commercial partnership last September, did not provide the financial terms of the transaction. Trade finance refers to financial products offered by banks and other institutions that seek to facilitate global trade by reducing counterparty risk between importers and exporters. Cleareye.ai operates a platform that it claims can expedite trade finance processes and compliance by analysing documents and data and removing manual checks. JP Morgan's trade finance business receives nearly 4 million individual documents every year.

Persons: Cleareye.ai, Andres Gonzalez, Louise Heavens Organizations: JPMorgan, Trade, Cleareye.ai, Thomson Locations: Cleareye.ai, U.S

☆ Yuan overtakes dollar to become most-used currency in China's cross-border transactions
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, April 26 (Reuters) - The yuan became the most widely-used currency for cross-border transactions in China in March, overtaking the dollar for the first time, official data showed, reflecting efforts by Beijing to internationalise use of the yuan. The yuan was used in 48.4% of all cross-border transactions, Reuters calculated, while the dollar's share declined to 46.7% from 48.6% a month earlier. The volume of cross-border transactions covers both the current and capital accounts. China has long been promoting the use of yuan to settle cross-border trades as part of an efforts to internationalise the use of its currency. Data from SWIFT showed that the yuan's share of global currency transactions for trade finance rose to 4.5% in March, while the dollar accounted for 83.71%.

☆ Bank of America or Citi? Analysts say one stock is set to soar 50%
▼ + stars: | 2023-04-21 | by ( Weizhen Tan | ) www.cnbc.com time to read: +4 min

Two of them were Citi and Bank of America , both of which exceeded forecasts on revenue and other metrics. Bank of America: 'Superior resiliency' Bank of America continues to demonstrate a "Goliath is Winning" theme, Wells Fargo said in an April 18 note. The bank's earnings came in at 94 cents per share, above Wall Street's estimate of 82 cents, according to Refinitiv. Wells Fargo gave Bank of America a price target of $45, or potential upside of nearly 50% from Wednesday's close. Wells Fargo gave Citi a price target of $62, or potential 24% upside from Wednesday's close — smaller than the upside it gave Bank of America.

☆ Sanctions against Russia could hurt the US dollar as countries like Iran and China seek alternative currencies for trade: Treasury Secretary Janet Yellen
▼ + stars: | 2023-04-17 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

US sanctions on Russia could threaten the dollar's hegemony, Treasury Secretary Janet Yellen told CNN. The Chinese yuan is a competitor to the US dollar, amid Beijing's big ambitions for the currency. "There is a risk when we use financial sanctions that are linked to the role of the dollar that over time it could undermine the hegemony of the dollar," Yellen told CNN's Fareed Zakaria in an interview. Of course, it does create a desire on the part of China, of Russia, of Iran to find an alternative," Yelled said. In January, the US dollar dominated global trade, accounting for about 85% of trade finance, according to a February report from global payments system Swift.

☆ Fed, Treasury Fine Wells Fargo for Sanctions Violations
▼ + stars: | 2023-03-30 | by ( David Harrison | ) www.wsj.com time to read: 1 min

The Federal Reserve and the Treasury Department are fining Wells Fargo & Co. $97.8 million for violating U.S. sanctions by allowing a foreign bank to make prohibited transactions on one of the bank’s platforms. Between 2010 and 2015, an unidentified foreign bank used a Wells Fargo trade finance platform called Eximbills to process about $532 million in transactions that violated U.S. sanctions rules. The foreign bank’s trades “involved parties in jurisdictions subject at the time of the transaction to sanctions regulations,” the Fed said.

March 30 (Reuters) - Wells Fargo & Co (WFC.N) will pay fines of about $97.8 million for inadequate oversight of its compliance risks, enabling the apparent violation of U.S. sanctions against Iran, Syria and Sudan, federal authorities said on Thursday. The Fed fined Wells Fargo $67.8 million, while OFAC fined the bank $30 million for inadequate oversight of its compliance risks from 2010 to 2015. “Wells Fargo is pleased to resolve this legacy matter involving conduct that ended in 2015, which we voluntarily self-reported and fully cooperated with OFAC and the Federal Reserve Board to address," a Wells Fargo spokesperson said in a statement. In a release, OFAC said that Wells Fargo and its predecessor, Wachovia Bank, provided a European bank with software beginning in 2008 that allowed the firm to process 124 transactions involving sanctioned individuals or jurisdictions. In December, the U.S. Consumer Financial Protection Bureau hit Wells Fargo with the watchdog's largest ever civil penalty as part of a $3.7 billion agreement to settle charges over widespread mismanagement of car loans, mortgages and bank accounts.

☆ International Islamic Trade Finance Corporation lends Tunisia $280 million
▼ + stars: | 2023-03-04 | by ( ) www.reuters.com time to read: 1 min

TUNIS, March 3 (Reuters) - The International Islamic Trade Finance Corporation lent Tunisia $280 million to finance energy imports, the economy ministry said on Friday. Tunisia, suffering a financial crisis, has struggled to provide basic commodities such as energy and food amid a growing social and political crisis in the country. Reporting by Tarek Amara; Editing by Frank Jack DanielOur Standards: The Thomson Reuters Trust Principles.

A year from Russia's invasion of Ukraine, fracturing geopolitics seems to be rolling back world trade links and financial interdependence at speed. But global financial conditions - and the strength of the U.S. dollar as a proxy for that - may be playing a bigger part than the more dramatic political narrative lets on. "A stronger dollar tends to go hand in hand with tighter global financial conditions and more subdued supply chain activity." Compensating somewhat for dollar exchange rate strength over the decade were historically low real dollar borrowing rates. There's little doubt that the pandemic and the geopolitics surrounding Ukraine and Taiwan have been major potential disruptions to world trade by themselves.

☆ Standard Chartered plans hiring spree in Hong Kong as it sees a 'pickup' after Covid
▼ + stars: | 2023-02-21 | by ( Michelle Toh | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Standard Chartered is going on a hiring spree in Hong Kong this year, in a sign of renewed confidence in its biggest market as the city reopens its border with mainland China. The British bank said it would add 300 to 500 employees to its ranks of roughly 5,500 to 5,800. Standard Chartered (SCBFF) Hong Kong CEO Mary Huen said the new recruitment drive would position the bank to capitalize on the reopening of the city’s border with mainland China. China fully reopened its borders with its special administrative regions of Hong Kong and Macao this month, in what is expected to be a major boost for the economies of the two cities. Hong Kong is also its biggest market.

☆ Gulf markets rise on China demand optimism
▼ + stars: | 2023-01-24 | by ( Md Manzer Hussain | ) www.reuters.com time to read: +3 min

Jan 24 (Reuters) - Gulf stock markets closed higher on Tuesday on expectations of economic recovery in the world's second largest economy, China, and smaller interest rate hikes from the U.S. Federal Reserve. Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes. The world's largest Islamic bank by market capitalization, Al Rajhi Bank (1120.SE), rose 0.8%. Qatar Islamic Bank (QISB.QA) continued its gains with a 2.3% rise and Qatar International Islamic Bank (QIIB.QA) rose 1.7%. Egypt has signed a $1.5 billion financing agreement with the International Islamic Trade Finance Corporation to fund its trading, including imports of energy products and essential commodities.

☆ Egypt signs $1.5 billion financing agreement with ITFC, CNBC Arabia reports
▼ + stars: | 2023-01-22 | by ( ) www.reuters.com time to read: 1 min

Jan 22 (Reuters) - Egypt has signed a $1.5 billion financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund its trade needs, including for importing energy products and essential commodities, CNBC Arabia wrote on Twitter, citing the ITFC's chief executive officer. Last year Egypt signed a similar agreement, also worth $1.5 billion, with the corporation, which is headquartered in Jeddah in Saudi Arabia and often funds Egypt's commodities imports, including grains and petroleum. Reporting by Nayera Abdallah; Editing by Hugh LawsonOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan's acquisition strategy is coming under fire. Here are the 15 fintech and consumer-focused deals done by the bank since 2020.
▼ + stars: | 2023-01-13 | by ( Carter Johnson | Rebecca Ungarino | ) www.businessinsider.com time to read: +19 min

NutmegDeal details: JPMorgan announced the acquisition in June 2021, paying approximately $1 billion. cxLoyaltyDeal details: JPMorgan said it would buy cxLoyalty's global loyalty division in December 2020. ProxymityDeal details: JPMorgan, Citi, HSBC, and other firms together invested $20.5 million in Proxymity in May 2020. Viva WalletDeal details: JPMorgan said it would acquire 49% of Viva Wallet in January 2022, pending regulatory approval. Christian Petersen-Clausen/Getty ImagesRenovite TechnologiesDeal details: JPMorgan announced on September 12 it plans to acquire Renovite.

Russia is on track to harvest a record grain crop of 150 million tonnes, including 100 million tonnes of wheat, in 2022. SANCTIONS CAUSE SOME LOSSESSovecon and another consultancy IKAR see December wheat exports at 4.0-4.2 million tonnes. That is close to the record of 4.3 million tonnes set in December, 2017, Sovecon said, adding that Russia exported 4.3 million tonnes of wheat in November. Sovecon expects Russia's July-December wheat exports at 22.9 million tonnes, up 2% year-on-year and equal to the average of the past five years. It estimates Russia's total 2022/23 grain exports at 56.1 million tonnes, including 43.7 million of wheat.

The transaction is also fraught with regulatory risks, analysts said, though RBC argues that HSBC's Canada business accounts for just 2% of Canadian banking market share. The finance minister has the authority to impose any terms and conditions, the finance department said in a statement. "This regulatory assessment isn't likely to be completed for some time," Calvin Goldman, former commissioner of Canada's competition bureau, told Reuters, referring to the latest deal. QUICK MOVEDespite the expected regulatory risks, RBC was keen to move quickly. RBC is paying 9.4 times HSBC's 2024 adjusted earnings, which KBW analysts said was a steep price, though offset by savings potentials.

SummarySummary Companies Coal miners struggling to fund expansion plansThermal coal costs more than coking coal after price surgeMost Western bankers pulling back from coal industryLONDON, Nov 24 (Reuters) - It's the best of times, it's the worst of times. At least when it comes to mining coal. With funding hard to come by from Western banks, coal miners outside China have turned more to equity markets this year. "With regard to thermal coal mining, any transaction in coal mining requires an enhanced environmental risk review," a Deutsche spokesperson said, adding that the bank was updating its coal policy. Bens Creek listed shares partly because of the lack of appetite from banks to support any expansion of coal mining, chief executive Wilson said.

REUTERS/Maja Smiejkowska/File PhotoCommodity trade finance covers many types of loans, typically from banks, that facilitate global movement of goods from wheat to gasoline. Most trade finance loans are short-term, less than a year. Traders’ credit lines became strained last year when natural gas prices sky-rocketed in the fourth quarter. ‘DESIRE TO DIVERSIFY’Lending for commodity trade finance has become more diverse, with non-bank financial institutions (NBFI) stepping in. The underlying issue was the retreat of major banks from commodity financing after some 2020 defaults in the sector while Russian banks Sberbank and Gazprombank that were set to expand have now been shut out of Europe.

Commodity trade finance covers many types of loans, typically from banks, that facilitate global movement of goods from wheat to gasoline. Most trade finance loans are short-term, less than a year. The involvement of hedge funds in commodity trade finance has created a lifeline for smaller firms, deemed to be higher risk for banks due to strict capital requirements and clean energy goals. 'DESIRE TO DIVERSIFY'Lending for commodity trade finance has become more diverse, with non-bank financial institutions (NBFI) stepping in. The Swiss firm specialises in financing small to mid-sized commodity merchants and has achieved returns between 6% to 10% over the last 10 years.

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