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☆ LayerZero Labs valued at $3 billion after latest fund-raise
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +1 min

April 4 (Reuters) - LayerZero Labs said on Tuesday that it has raised $120 million in an early stage funding round, that has tripled the blockchain messaging protocol's valuation to $3 billion. The Series B fund-raise saw participation from 33 investors, including a16z crypto, Christie's, Circle Ventures, OpenSea Ventures, Samsung Next, and Sequoia Capital, amongst others. In February, Via said it bagged a valuation of $3.5 billion after a funding round led by 83North. Last year, the New York-based blockchain infrastructure provider had raised $135 million in a funding round led by Sequoia Capital, FTX Ventures among others that valued it at $1 billion. It has received backing from some of the strongest crypto-focused companies in the entire world, including Binance, Blockdaemon, Christie's, Circle Ventures, Coinbase, OpenSea Ventures, and many more.

☆ Factbox: JPMorgan's Dimon comments on banking crisis and AI in annual letter
▼ + stars: | 2023-04-04 | by ( ) www.reuters.com time to read: +5 min

April 4 (Reuters) - The U.S. banking crisis is ongoing and will have effects for years to come, JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon wrote in a letter to shareholders on Tuesday. Here are some snippets from the letter:ON BANKING CRISIS* "Regarding the current disruption in the U.S. banking system, most of the risks were hiding in plain sight." * "While this crisis will pass, lessons will be learned, which will result in some changes to the regulatory system. * "The debate should not always be about more or less regulation but about what mix of regulations will keep America's banking system the best in the world." * "Regulatory arbitrage is already forcing many activities, from certain types of lending to certain types of trading, outside the banking system."

LONDON, April 4 (Reuters) - The problems around artisanal cobalt mining in Democratic Republic of Congo (DRC) will take "a coalition to solve", according to Microsoft (MSFT.O). Yet the West still needs Congo's cobalt and everyone agrees that formalisation is the solution to the high human and economic costs of artisanal mining. ETHICAL DILEMMAThe ethical dilemma facing Western cobalt users, which is just about everyone with a mobile phone, is headline news again after the publication of "Cobalt Red" by Siddarth Kara. Mutoshi's artisanal miners have lost their collective pricing power and their cobalt is once again flowing down opaque channels into the industrial supply chain, the report claims. Most of the country's estimated 150,000-200,000 cobalt miners have never even had the chance of formalisation.

☆ Fed might raise policy rates to 6% - BofA
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +1 min

Feb 28 (Reuters) - The U.S. Federal Reserve may hike interest rates to nearly 6%, BofA Global Research said, as strong U.S. consumer demand and a tight labor market would force the central bank to battle inflation for longer. The number is higher than a peak of 5.4% by September that traders are currently pricing in. "Aggregate demand needs to weaken significantly for inflation to return to the Fed's target. Further supply-chain normalization and a slowdown in the labor market will help, but only to a degree," said BofA in a noted dated Feb. 27. Reporting by Siddarth S in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

Meanwhile, money markets are currently pricing in a terminal rate of 5.3% by July. BofA Global Research also expects a 25bps hike in the Fed's June meeting, pushing the terminal rate up to a 5.25%-5.5% range. It had earlier pencilled in two rate hikes of 25 bps each in the March and May meetings. "Resurgent inflation and solid employment gains mean the risks to this (only two interest rate hikes) outlook are too one-sided for our liking," BofA wrote in a client note. Before the recent U.S. data, J.P. Morgan had forecast the terminal rate at 5.1% by the end of June.

☆ Davos 2023: The World Economic Forum explained
▼ + stars: | 2023-01-16 | by ( Siddharth K | ) www.reuters.com time to read: +4 min

DAVOS, Switzerland, Jan 16 (Reuters) - The World Economic Forum (WEF) returns to its snowy winter residency in the Swiss Alps this week with a record attendance of business and government leaders. The WEF's roots stretch back to 1971 when its founder Klaus Schwab invited executives from European companies to the then tiny ski resort of Davos, high in the Swiss Alps. With climate change top of the agenda, chiefs of major energy companies are back after a COVID-related hiatus. Others include IMF Managing Director Kristalina Georgieva, European Central Bank chief Christine Lagarde, NATO General Secretary Jens Stoltenberg, President of the European Commission Ursula von der Leyen and Chinese Vice-Premier Liu He. Climate change topped the WEF's survey of global risk and energy company executives will mix with climate activists and environment ministers at the forum.

☆ J.P.Morgan cuts 2023 S&P 500 earnings forecast by 9%
▼ + stars: | 2022-12-01 | by ( ) www.reuters.com time to read: +1 min

Dec 1 (Reuters) - J.P.Morgan on Thursday cut its 2023 earnings forecast for S&P 500 (.SPX) companies, citing weaker demand and pricing power, margin compression, and limited buy-backs. JPM strategists now estimate S&P 500 earnings per share for next year to be $205, down 9% from an earlier forecast of $225. They also flagged that the S&P 500 index could "re-test" this year's low of 3,491.58 in the first six months of 2023, as the U.S. Federal Reserve's monetary policy tightening weakens fundamentals. "This sell-off combined with disinflation, rising unemployment, and declining corporate sentiment should be enough for the Fed to start signaling a pivot, subsequently driving an asset recovery," they said, adding that the index could claw back up to 4,200 by year-end, to reflect a near 3% upside from current levels. Reporting by Subhadeep Chakravarty and Siddarth S; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

☆ Citi expects global growth to slow below 2% in 2023
▼ + stars: | 2022-11-30 | by ( Foo Yun Chee | ) www.reuters.com time to read: +1 min

Nov 30 (Reuters) - Citigroup on Wednesday forecast global growth to slow to below 2% next year, echoing similar projections by major financial institutions such as Goldman Sachs, Barclays, and J.P. Morgan. "We see global performance as likely (being) plagued by 'rolling' country-level recessions through the year ahead," said Citi strategists, led by Nathan Sheets. While the Wall-Street investment bank expects the U.S. economy to grow 1.9% this year, it is seen more than halving to 0.7% in 2023. For 2023, Citi projects UK and euro area to contract 1.5% and 0.4%, respectively. In China, the brokerage expects the government to soften its zero-COVID policy, which is seen driving a 5.6% growth in gross domestic product next year.

Nov 21 (Reuters) - Goldman Sachs on Monday warned that the global equity bear market is not over as the markets are yet to see a trough in the momentum of global growth deterioration, a peak in interest rates and valuations lowered to reflect a likely recession. "We continue to think that the near-term path for equity markets is likely to be volatile and down before reaching a final trough in 2023," Goldman Sachs said in a note. The investment bank expects investors to start to price in expectations for a bull market next year. "We expect markets to transition into a 'Hope' phase of the next bull market at some point in 2023, but from a lower level." Reporting by Siddarth S in BengaluruOur Standards: The Thomson Reuters Trust Principles.

☆ J.P.Morgan predicts a mild U.S. recession next year
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +1 min

Nov 17 (Reuters) - J.P.Morgan economists predict a "mild recession" in the United States in the back half of next year given expectations for the Federal Reserve to tighten monetary policy further in its battle against inflation. The investment bank sees the economy contracting by 0.5% by the fourth quarter of next year, and possibly dragging into 2024. That is seen cutting 2023 U.S. gross domestic product (GDP) to 1%, almost half of its forecast for 2022. A 50-bps hike is expected in December, followed by 25 bps each in February and March. Personal consumption expenditure - the Fed's preferred inflation metric - is expected to moderate to 3.4% next year.

☆ Barclays cuts 2023 global growth forecast, expects weakest growth in four decades
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

Nov 16 (Reuters) - Barclays economists on Wednesday cut their global economic growth forecast for 2023 as inflation is seen unlikely to fall quickly, forcing monetary policy to be 'restrictive'. The brokerage warned that 2023 looks set to be one of the weakest in four decades with advanced economies likely heading into a recession. They now forecast global growth at 1.7% on a year-on-year basis, compared to September's forecast of 2.2%. For the U.S., the brokerage sees a longer recession that will see gross domestic product decline by 0.1% in 2023. It expects India to grow over 5% on a year-on-year basis in 2023.

☆ U.S. stocks price in recession risk more than other assets, says Citi
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +2 min

"No asset class is over pricing the recession risk. But in relative terms, U.S. equities have the most recession risk priced in," a Citigroup team led by Alex Saunders said in a note dated Tuesday, adding earnings estimates had more to adjust. U.S. bonds had priced the least risk of a recession, the Wall Street bank said. "Bonds may have to wait for longer this time around to price recession risk given that the Fed will remain hawkish for longer than typical," the team wrote. Industrials and financials are not factoring in enough recession risk among sectors, Citigroup said, with consumer discretionary the least risk priced in.

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