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The logo of Meta Platforms' business group is seen in Brussels, Belgium December 6, 2022. REUTERS/Yves Herman/File Photo Acquire Licensing RightsSTOCKHOLM/BRUSSELS, Nov 15 (Reuters) - Meta (META.O) on Wednesday appealed against "gatekeeper" designations for its Messenger and Marketplace platforms, the first Big Tech company to challenge new European Union rules setting out dos and don'ts for the online services. Meta's Facebook, Instagram, Marketplace, and WhatsApp qualified as gatekeepers under the DMA, which was designed to level the playing field between Big Tech companies and smaller competitors. "This appeal seeks clarification on specific points of law regarding the designations of Messenger and Marketplace under the DMA," a spokesman said. Microsoft and Google have said they will not challenge DMA designations, while sources expect TikTok to file a challenge.

Persons: Yves Herman, WhatsApp, Microsoft's Bing, Supantha Mukherjee, Yun Chee, Emelia Sithole Organizations: REUTERS, Rights, Big Tech, Union, Digital Markets, Facebook, European Commission, Microsoft, Apple, Google, Meta, Thomson Locations: Brussels, Belgium, Rights STOCKHOLM, BRUSSELS, Stockholm

REUTERS/Ken Cedeno/Pool/File Photo Acquire Licensing RightsDUBLIN Nov 8 (Reuters) - A rise in geopolitical tensions across the world could aggravate already subdued growth in Europe and China and the spillover may alter the path of the U.S. economy, Federal Reserve Governor Lisa Cook said on Wednesday. "We are not only watching subdued growth, we're watching the geopolitical tensions that we're all talking about, and that could change the outlook both in the United States and the global economy." Cook added that geopolitical tensions may in particular destabilize commodity markets and access to credit in the current higher interest rate environment. "Any shock could make the situation worse that we're already (in)... and could be destabilizing to commodity markets, could be destabilizing to the system of credit," Cook said. "More broadly, escalation of geopolitical tensions could lead to lower economic activity and increased fragmentation of global trade flows and financial intermediation, raising financing and production costs and contributing to more sustained supply chain challenges and inflationary pressures," Cook said.

Persons: Lisa DeNell Cook, Ken Cedeno, Lisa Cook, Cook, We're, Padraic Halpin, Conor Humphries, Ann Saphir, Lindsay Dunsmuir, Leslie Adler, Mark Potter Organizations: Governors, Federal Reserve System, Banking, Housing, Urban, Capitol, Washington , D.C, REUTERS, DUBLIN, Federal, Central Bank of Ireland, Thomson Locations: Michigan, Washington ,, Europe, China, U.S, Dublin, United States, Ukraine, Russia, East, San Francisco

☆ Rich countries are stumbling into a debt trap
▼ + stars: | 2023-11-03 | by ( Felix Martin | ) www.reuters.com time to read: +7 min

Unlike many corporations and households, the U.S. government did not lock in the low interest rates of the last decade by issuing long-dated debt, preferring instead to skew funding towards bills and short-term bonds. The second route out of the debt trap is to target the primary fiscal surplus, choosing a combination of spending cuts and tax hikes that will stabilise the public debt. That leaves the third route to debt sustainability – keeping real interest rates low. But in the short run, it allows a government to tame the debt ratio without fiscal austerity, and even if growth is sluggish. Governments are indeed stuck in a classic debt trap.

Persons: Joe Biden, Fumio Kishida, Volodymyr Zelenskiy, Kacper, Everett Dirksen, you’re, Dirksen’s, Stanley Druckenmiller, Joe Biden’s, Peter Thal Larsen, Thomas Shum Organizations: Japan's, NATO, REUTERS, Reuters, Congressional, Office, International Monetary Fund, U.S, Treasury, Reuters Graphics Reuters Graphics, Medicaid, Federal, Bank of Japan, Thomson Locations: Ukraine, Vilnius, Lithuania, Illinois, U.S, Britain

☆ Japan's property market shows signs of overheating, central bank says
▼ + stars: | 2023-10-20 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

In a heat map of economy sectors which are running hot, the ratio of investment by real estate firms to gross domestic product (GDP) turned "red", a signal that the property market was overheating, the central bank said. "The increase in real estate firms' investment has been accelerated by urban redevelopment projects by major real estate developers," it added. "In some limited commercial areas in central Tokyo, transactions in the higher price range have been increasing," it said, adding that developments in the real estate transaction market "continue to warrant close monitoring". Japanese banks could also face risks from the rising possibility of interest rates remaining high overseas, it added. But credit costs could rise abruptly, particularly for loans to Asia, if overseas interest rates stay higher for longer, it warned.

Persons: Kim Kyung, Banks, Leika Kihara, Kim Coghill, Clarence Fernandez Organizations: REUTERS, Bank of Japan, Bank, U.S . Federal Reserve, Thomson Locations: Tokyo, Japan, TOKYO, Asia

☆ Instacart's IPO flops as the stock slumps. Here are 7 reasons why.
▼ + stars: | 2023-09-20 | by ( Alistair Barr | ) www.businessinsider.com time to read: +6 min

This is one of the concerns that has turned Instacart's IPO into a flop on its second day as a public company. To be successful, an IPO must deliver a big pop to the investors who signed on to buy stock when it debuts. He came out with an analysis of Instacart's business on Tuesday, valuing the company at $29 a share. The reason: The grocery business is low-margin, so there's not a lot of room for Instacart to skim more fees. "In short, the growth in online grocery sales will be higher than total grocery sales growth, but not overwhelmingly so."

Persons: Aswath Damodaran, Fidji Simo, Instacart, Rowe Price, Damodaran, there's, Uber, Instacart doesn't Organizations: Service, Fidelity, DST Global, NYU's Stern School of Business, Instacart Shoppers, Shoppers, Tech Locations: Wall, Silicon, Aswath, COVID

☆ How to keep the next 'dash for cash' from crashing bond market - study
▼ + stars: | 2023-08-25 | by ( ) www.reuters.com time to read: +2 min

Treasury trading nearly ground to a halt, imperiling the functioning of global financial markets, until the Fed jumped in to buy hundreds of billions of dollars of bonds that helped to free up space on dealer balance sheets. "Backstopping the liquidity of this market with transparent official-sector purchase programs will further buttress market resilience." Future bouts of Treasury market illiquidity could also be made less likely with broader use of central clearing, Duffie wrote, as well as changing the way regulators assess bank capital levels. Financial authorities made such a change temporarily after March 2020, but allowed the so-called Supplementary Leverage Ratio exemption to sunset a year later. Other changes could include technical changes to market function to encourage direct buying and selling without dealer intermediation, Duffie wrote.

Persons: JACKSON, Darrell Duffie, Duffie, intermediation, Ann Saphir, Chizu Organizations: Treasury, Federal Reserve, Stanford University, Kansas City, Fed, Thomson Locations: , Wyoming, Jackson Hole , Wyoming

☆ How to keep the next 'dash for cash' from crashing bond market
▼ + stars: | 2023-08-25 | by ( ) www.reuters.com time to read: +2 min

☆ Colombia's Grupo Aval posts 75% fall in profit as bank margins fall
▼ + stars: | 2023-08-17 | by ( ) www.reuters.com time to read: +1 min

People walk in front of the Banco de Bogota, belonging to Grupo Aval, in Bogota, Colombia, October 31, 2019. REUTERS/Luisa Gonzalez/File photo Acquire Licensing RightsAug 16 (Reuters) - Colombian financial conglomerate Grupo Aval reported a 75.4% year-over-year fall in net profit in the second quarter, according to a securities filing on Wednesday, despite a strong boost in interest income. In the three-month period to June, net profit reached 166.2 billion pesos ($40.6 million). The financial portfolio of Grupo Aval (GAA.CN) includes Colombian banks Banco de Bogota (BBO.CN), Banco Popular (BPO.CN), Banco AV Villas (VLL.CN) and Banco de Occidente (BOC.CN). ($1 = 4,096.08 Colombian pesos)Reporting by Noe Torres in Mexico City, Writing by Isabel WoodfordOur Standards: The Thomson Reuters Trust Principles.

Persons: Luisa Gonzalez, Noe Torres, Isabel Woodford Organizations: Banco, Bogota, Grupo Aval, REUTERS, Colombian, Grupo, Banco de Bogota, Banco Popular, Banco AV Villas, Occidente, Thomson Locations: Bogota, Colombia, Colombian, Mexico City

☆ Insight: BOJ makes bold shift as yen risks grow too big to ignore
▼ + stars: | 2023-08-03 | by ( Leika Kihara | ) www.reuters.com time to read: +9 min

The BOJ's decision shook markets on Friday and contrasted sharply with Ueda's more cautious comments in recent months about the dangers of retreating too quickly from accommodative Kuroda-era policies. "There's also a small but probable risk of inflation overshooting in Japan, which gave the BOJ reason to act." NEW PRIORITIESThe BOJ's policy decision last week signalled to investors that it would now allow the 10-year government bond yield to move closer to 1% before it intervenes. 'BIT BY BIT'The shift in thinking gained momentum at the BOJ's June policy meeting, but not enough to turn the tide. It was a test case, or a preliminary exercise, toward future policy normalisation," said former BOJ board member Takahide Kiuchi.

Persons: Issei Kato, Kazuo Ueda, Haruhiko Kuroda, Fumio, accommodative Kuroda, Ueda, YCC, There's, Hirokazu Matsuno, Seiji Adachi, Asahi Noguchi, Ryozo Himino, Shinichi Uchida, Uchida, Masato Kanda, Kanda, Takahide, Leika Kihara, Takaya Yamaguchi, Takahiko Wada, Kentaro Sugiyama, Yoshifumi, Sam Holmes Organizations: Bank of Japan, REUTERS, TOKYO, Bank, Ueda, Reuters, BIT, Asahi, Nikkei, Thomson Locations: Tokyo, Japan

Summary BOJ has kept easy policy with eye on market functionSustained achievement of BOJ's price goal still distantUeda's remarks come amid speculation of July policy tweakJuly 18 (Reuters) - Bank of Japan (BOJ) Governor Kazuo Ueda said on Tuesday there was still some distance to sustainably and stably achieving the central bank's 2% inflation target, signalling his resolve to maintain ultra-loose monetary policy for the time being. "We have patiently continued our ultra-loose monetary policy under yield curve control (YCC)," with due consideration to the impact on financial intermediation and market function, Ueda told a news conference after attending a G20 finance leaders' meeting in India. Ueda said the BOJ will scrutinise at each policy meeting the pace of progress Japan was making in sustainably achieving its 2% target. "If our assumption (that sustained achievement of 2% inflation remains distant) is unchanged, our overall narrative on monetary policy remains unchanged," he said. Reporting by Leika Kihara and Tetsushi Kajimoto in Tokyo; Editing by Bernadette Baum and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

Persons: Kazuo Ueda, Ueda, Leika Kihara, Bernadette Baum, Christina Fincher Organizations: Bank of Japan, Reuters, Thomson Locations: India, Japan, Tokyo

☆ Bank of Japan deputy governor Uchida vows to keep yield control for now, Nikkei reports
▼ + stars: | 2023-07-06 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

Summary BOJ 'strongly acknowledges' side-effects of YCC - UchidaUchida rules out chance of early end to negative ratesJapan seeing signs of change in corporate behaviour - UchidaTOKYO, July 7 (Reuters) - Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said the central bank will maintain its yield curve control policy from the perspective of sustaining ultra-loose monetary conditions, the Nikkei newspaper reported on Friday. With inflation exceeding its 2% target for more than a year, markets are simmering with speculation the BOJ will tweak yield curve control (YCC) - a policy that guides short-term interest rates at -0.1% and caps the 10-year bond yield around 0%. Uchida said the BOJ "strongly acknowledges" the side-effects of YCC such as the impact on market function, according to Nikkei. But the central bank must support the economy amid recent signs of change in corporate wage and price-setting behaviour, Uchida was quoted as saying. Reporting by Leika Kihara; Editing by Leslie Adler and Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

Persons: Uchida Uchida, Uchida TOKYO, Shinichi Uchida, Uchida, YCC, Leika Kihara, Leslie Adler, Sandra Maler Organizations: Bank of Japan, Nikkei, Thomson Locations: Japan

☆ EU charges Google with anti-competitive practices in ad tech business
▼ + stars: | 2023-06-14 | by ( Silvia Amaro | ) www.cnbc.com time to read: +2 min

The European Commission, the executive arm of the EU, reached a preliminary conclusion that Google is dominant in the European market for publisher ad servers and for programmatic ad-buying tools for the open web. The commission also said Google has abused this dominant position since at least 2014. "The Commission's preliminary view is therefore that only the mandatory divestment by Google of part of its services would address its competition concerns," EU competition chief Margrethe Vestager said in a statement. "Our preliminary concern is that Google may have used its market position to favour its own intermediation services. If confirmed, Google's practices would be illegal under our competition rules,"Google was not immediately available for comment when contacted by CNBC.

Persons: Margrethe Vestager, Vestager Organizations: European Union, European Commission, EU, Google, CNBC Locations: Brussels, Belgium

☆ SEC Chair Gensler says crypto frenzy is rife with 'hucksters, fraudsters, scam artists'
▼ + stars: | 2023-06-08 | by ( Bob Pisani | ) www.cnbc.com time to read: +4 min

Speaking remotely at the Piper Sandler Global Exchange and FinTech Conference in New York City, Gensler said most crypto tokens are securities and come under the purview of the SEC. "The crypto securities markets should not be allowed to undermine the well-earned trust the public has in the capital markets," Gensler said. Thus, crypto security issuers need to register the offer and sale of their investment contracts with the SEC or meet the requirements for an exemption." "Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well," he said. Gensler made no reference to allegations by Binance's lawyers that he offered to be an advisor to the crypto exchange in 2019.

Persons: Gary Gensler, Evelyn Hockstein, Piper Sandler, Gensler, Binance, Rich, Rich Repetto, Piper Organizations: . Securities, Exchange Commission, SEC, Banking, Housing, Urban Affairs Committee, Capitol, Reuters, Securities, Exchange, Piper, Piper Sandler Global Exchange, FinTech Conference, Twitter, Massachusetts Institute, Technology's Sloan School of Management Locations: Washington, New York City

☆ Brazil's central bank chief opposes creation of common currency
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: +2 min

BRASILIA, June 2 (Reuters) - Brazil's central bank chief Roberto Campos Neto expressed his opposition on Friday to the creation of a common currency, stating that in the era of digitalization it is unnecessary to have a shared currency for its purported benefits. Campos Neto emphasized the potential power of digital solutions in providing effective alternatives. Specifically addressing the proposal of a common currency between Brazil and Argentina, which has also been previously mentioned by the government, he reiterated his opposition. "We should have a 'digital' minister, someone should be thinking about digital solutions," he added. He defended that Brazil's CBDB is much easier to regulate than other forms of CBDCs since tokenized bank deposits will be subject to the same regulations that govern traditional deposits.

Persons: Roberto Campos Neto, Luiz Inacio Lula da, Campos Neto, Marcela Ayres, Chizu Organizations: Valor Capital, Thomson Locations: BRASILIA, Brazil, Argentina

"Global debt is now $45 trillion higher than its pre-pandemic level and is expected to continue increasing rapidly," said the IIF in its quarterly Global Debt Monitor. The report partly focused on the effects of last year's rapid rise in rates in some bank balance sheets. The IIF voiced its concern that tighter lending practices among smaller banks would hurt some businesses and households harder. "Shadow banks now account for more than 14% of financial markets, with the majority of growth stemming from a rapid expansion of U.S. investment funds and private debt markets." "With the interest rate differential between EMs and mature markets diminishing, EM local currency debt is less appealing for foreign investors," the IIF said.

"Global debt is now $45 trillion higher than its pre-pandemic level and is expected to continue increasing rapidly," said the IIF in its quarterly Global Debt Monitor. The report partly focused on the effects of last year's rapid rise in rates in some bank balance sheets. "Shadow banks now account for more than 14% of financial markets, with the majority of growth stemming from a rapid expansion of U.S. investment funds and private debt markets." But for others access to markets has been harder or non-existent on either tighter spreads as rates rose in developed markets or fast-rising borrowing costs. "With the interest rate differential between EMs and mature markets diminishing, EM local currency debt is less appealing for foreign investors," the IIF said.

☆ G20 financial watchdog seeks to learn from latest banking turmoil
▼ + stars: | 2023-04-12 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, April 12 (Reuters) - The G20's financial watchdog on Wednesday said rules it introduced after the global financial crisis had prevented contagion from the latest banking sector turmoil, but it would remain vigilant as the outlook has become more challenging. Unlike other market shocks, the latest episode originated in the financial sector, and therefore "put to the test" the G20's financial reforms, FSB Chair Klaas Knot said in a letter to G20 finance ministers and central bankers meeting in Washington. He said "rapid and effective" actions by authorities in Switzerland, the United States and other jurisidictions maintained global financial stability. "Without these reforms, the stress faced by individual banks could have led to broader contagion within the financial system," Knot said. The outlook for financial stability had become more challenging, Knot said, and the need for financial authorities to learn lessons and act upon them was "all the greater".

☆ Goldman Sachs reshuffles equities unit executives after top trader Montesano's exit
▼ + stars: | 2023-04-12 | by ( ) www.reuters.com time to read: +1 min

April 12 (Reuters) - Goldman Sachs Group Inc (GS.N) on Wednesday announced a slew of changes to leadership in its equity trading division following the retirement of its top equity trader Joe Montesano last month, according to a memo seen by Reuters. Cyril Goddeeris will continue to lead global equity financing, which includes his responsibilities as co-head of global prime services and head of global securities lending and synthetic trading. Dimitrios Nikolakopoulos will lead global equity structured products. Dmitri Potishko and Erdit Hoxha will be co-heads of global flow derivatives and emerging markets trading. Travis Chmelka, who joined the firm in 2004 and was named managing director in 2013 and partner in 2020, will head Americas Flow Derivatives.

☆ Italian drugs cartels conceal payments via Chinese shadow banks
▼ + stars: | 2023-04-06 | by ( Emilio Parodi | ) www.reuters.com time to read: +10 min

[1/3] Seized drugs are seen following an investigation on drugs cartels operating in Italy increasingly using shadow networks of unlicensed Chinese money brokers to launder their proceeds in this handout photo obtained by Reuters on April 4, 2023. Carabinieri/Handout via REUTERSMILAN, April 6 (Reuters) - Drugs cartels operating in Italy are increasingly using shadow networks of unlicensed Chinese money brokers to conceal cross-border payments, according to Italian judicial and law enforcement authorities. U.S. authorities have said Chinese “money brokers” represent one of the most worrisome new threats in their war on drugs, as a Reuters investigation in 2020 found. Chinese authorities have previously vowed to crackdown on underground banking. One of the first probes to come to light involving use of Chinese money brokers by Italian mobsters was linked to the Calabrian ‘Ndrangheta group, one of the largest crime gangs in the world.

☆ US current account deficit narrows in fourth quarter
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, March 23 (Reuters) - The U.S. current account deficit narrowed in the fourth quarter amid an improvement in secondary income receipts as well as an increase in the services surplus, data showed on Thursday. The Commerce Department said the current account deficit, which measures the flow of goods, services and investments into and out of the country, contracted 5.6% to $206.8 billion last quarter. The current account gap represented 3.2% of gross domestic product, the smallest share since the second quarter of 2020 and down from 3.4% in the third quarter. The deficit peaked at 6.3% of GDP in the fourth quarter of 2005. For all of 2022, the current account gap widened to a record $943.8 billion, down from $846.4 billion in 2021.

☆ ECB to look for signs of stress but banking crisis unlikely
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +3 min

Summary Lagarde says rate hikes are just starting to biteLane says full-blown banking crisis is unlikelyFRANKFURT, March 22 (Reuters) - The European Central Bank will watch for signs of stress in bank lending from the ongoing financial turmoil but a full-blown crisis is unlikely for now, the ECB's top brass said on Wednesday. But that's pretty much a tail scenario at this point in time," Lane told a conference on Wednesday. "For inflationary pressures to ease, it is important that our monetary policy works robustly in the restrictive direction," she said. Lane said he expected core prices to ease over time as lower fuel costs filter through to other sectors. Reporting By Francesco Canepa and Balazs Koranyi; Editing by Toby Chopra and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

☆ ECB to watch bank rates for signs of stress, Lagarde says
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, March 22 (Reuters) - The European Central Bank's interest rate increases are just starting to take effect on the economy but their transmission may become stronger as a result of the banking turmoil, ECB President Christine Lagarde said on Wednesday. Lagarde said the ECB's actions to raise borrowing costs may be magnified if banks become more risk averse and start demanding higher rates when lending -- likely implying the central bank would need to increase its own rates by less. "For inflationary pressures to ease, it is important that our monetary policy works robustly in the restrictive direction," she said. The ECB has increased the rate it pays on bank deposits by a record-breaking 350 basis points to 3% since July and financial markets expect a further increase to 3.5% later this year. Reporting By Francesco Canepa and Balazs Koranyi; Editing by Toby Chopra and Christina FincherOur Standards: The Thomson Reuters Trust Principles.

☆ Exclusive: UK debt agency treads careful path to sell near-record volume of bonds
▼ + stars: | 2023-03-15 | by ( David Milliken | ) www.reuters.com time to read: +4 min

After finance minister Jeremy Hunt announced his budget plans earlier on Wednesday, the DMO said it would need to sell 241.1 billion pounds ($291 billion) of government bonds in the 2023/24 financial year - the highest on record apart from 485.8 billion pounds sold in 2020/21. The Bank of England is no longer a buyer in the market, and instead is reducing its own gilt holdings by 80 billion pounds a year. "We can issue larger cash amounts in, for instance, a short-dated auction than in a long- or index-linked auction," Stheeman said. Over the coming year, the DMO aims to sell 86.7 billion pounds of short-dated bonds, 65.3 billion pounds of medium-dated, 50.1 billion pounds of long-dated gilts and 26.2 billion pounds of inflation-linked debt. The medium- and long-dated debt includes 10 billion pounds of 'green' bonds - a volume that is capped by the requirement for the government to designate investment projects which meet certain environmental criteria.

REUTERS/Brendan McDermidORLANDO, Florida, March 14 (Reuters) - When the U.S. yield curve inverts bad things tend to happen. chartCARRY THAT WEIGHTWhile SVB's failure may not be a direct casualty of the inverted yield curve, an inverted curve is a sign that wider financial conditions are not so easy, presenting banks with a far more challenging economic and financial environment. The two-year Treasury yield has been higher than the 10-year yield since last July as the Fed has embarked on its most aggressive rate-raising campaign in decades. Banks make money when the yield curve slopes positively, borrowing cheaply via customer deposits, central bank windows or the short end of the curve, and lending longer term at higher rates - a classic 'carry trade'. A downward-sloping curve stymies this 'carry' and curbs lending, and the consequences are clear when that lasts for as long as eight months.

☆ Wall Street pushes back against SEC stock market reforms
▼ + stars: | 2023-03-06 | by ( John Mccrank | ) www.reuters.com time to read: +2 min

NEW YORK, March 6 (Reuters) - The New York Stock Exchange teamed up with retail broker Charles Schwab Corp (SCHW.N) and market maker Citadel Securities on Monday to ask the U.S. Securities and Exchange Commission to withdraw two recently proposed rules aimed at revamping how stocks trade. The move represents a coordinated industry push back against what are potentially the most impactful proposals in the SEC's biggest attempt to reform stock market rules in nearly 20 years. The aim of the proposed rules is to improve market quality and efficiency, by boosting competition for retail stock orders and reducing unnecessary intermediation, SEC Chair Gary Gensler has said. The NYSE, along with Schwab and Citadel Securities, asked the SEC to indefinitely withdraw the auction and best execution proposals, saying that they could lead to less market liquidity and create confusing regulatory overlap. The SEC did not immediately respond to a request for comment.

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