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EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros

EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros

By Giuseppe Fonte and Gavin Jones ROME (Reuters) – The European Commission has frozen an overdue 19-billion-euro ($20.50 billion..

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Mar 28, 2023 · 3 min read

BoE’s Bailey says rate-setters can put inflation before bank worries

BoE’s Bailey says rate-setters can put inflation before bank worries

By William Schomberg and Andy Bruce LONDON/MANCHESTER (Reuters) -Bank of England Governor Andrew Bailey signalled on Monday that inter..

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Mar 28, 2023 · 3 min read

UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report

UK oil, gas firms to leave year’s worth of output in ground with tax hikes-report

LONDON (Reuters) – Windfall taxes mean oil and gas producers in the British North Sea will likely leave 500 million barrels of o..

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Mar 28, 2023 · 3 min read

UK retailers turn positive on sales hopes after bleak winter

UK retailers turn positive on sales hopes after bleak winter

LONDON (Reuters) – British retailers reported their first positive sales expectations in seven months, according to a survey pub..

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Mar 27, 2023 · 2 min read

Li-Cycle to build French battery processing facility

Li-Cycle to build French battery processing facility

By Ernest Scheyder (Reuters) – Li-Cycle Holdings Corp said on Monday it will build a French facility to break down batteries fro..

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Mar 27, 2023 · 2 min read

Hungary’s booming wedding market doused by soaring inflation

Hungary’s booming wedding market doused by soaring inflation

By Gergely Szakacs and Krisztina Fenyo BUDAPEST (Reuters) – Soaring inflation is taking the steam out of Hungary’s wedding..

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Mar 27, 2023 · 3 min read

Credit Agricole launches China M&A and investment banking business

Credit Agricole launches China M&A and investment banking business

HONG KONG (Reuters) – Credit Agricole, France’s second-biggest listed bank, has become the latest foreign lender to boost ..

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Mar 27, 2023 · 1 min read

UK’s competition watchdog to examine EDF buying GE’s nuclear turbine unit

UK’s competition watchdog to examine EDF buying GE’s nuclear turbine unit

(Reuters) – UK’s anti-trust regulator said on Monday it was looking into whether FDF’s proposed acquisition of Gener..

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Mar 27, 2023 · 1 min read

In inflation-hit Germany, massive strike over pay to cripple transport

In inflation-hit Germany, massive strike over pay to cripple transport

By Klaus Lauer and Tom Sims BERLIN/FRANKFURT (Reuters) – A massive strike in Germany was set to begin early Monday, crippling ma..

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Mar 27, 2023 · 3 min read

Marketmind: Banks are leaking money

Marketmind: Banks are leaking money

A look at the day ahead in European and global markets from Wayne Cole It’s been a quiet Monday so far with Asian share markets ..

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Mar 27, 2023 · 3 min read

Oil markets steady as investors weigh banking crisis, Russia

Oil markets steady as investors weigh banking crisis, Russia

By Mohi Narayan and Florence Tan (Reuters) -Oil prices stabilised in Asian trade on Monday as investors sought cues from broader finan..

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Mar 27, 2023 · 3 min read

How the 2023 banking crisis unfolded

How the 2023 banking crisis unfolded

(Reuters) – Global banks are staring at the biggest crisis since 2008 after two U.S. lenders collapsed, Switzerland’s Cred..

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Mar 24, 2023 · 4 min read

S&P Global fined 1.1 million euros for premature credit rating publications

S&P Global fined 1.1 million euros for premature credit rating publications

By Marc Jones LONDON (Reuters) -The European Union’s securities watchdog has fined S&P Global Ratings 1.1 million euros ($1...

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Mar 24, 2023 · 2 min read

UK’s J D Wetherspoon returns to profit as supply issues ease

UK’s J D Wetherspoon returns to profit as supply issues ease

(Reuters) -British pub group J D Wetherspoon Plc on Friday posted a return to half-year profit and said sales in recent weeks have top..

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Mar 24, 2023 · 2 min read

Swiss franc grapples with safe-haven identity crisis after Credit SuisseBy Samuel Indyk LONDON (Reuters) – The Swiss franc hasn’t lived up to its safe-haven reputation during the Credit Suisse collapse, as investors have sought shelter elsewhere, bringing more of a boost to the value of the gold in Switzerland’s bullion vaults than to its currency. Money managers ditched the Swiss franc at the fastest rate in two years last week in the run-up to the dramatic takeover of Credit Suisse by UBS. The Swissie, often used as a refuge in times of market stress or volatility, lost 0.9% against the dollar in the week after the Swiss finance department said regulators were closely monitoring the situation at Credit Suisse on March 13. In that same time, Japan’s yen, which is also seen as a refuge in times of tumult, rose 2.6% against the dollar. Gold, another traditional safe haven, rose over 5% in the week after March 13 to above $2,000 an ounce, its highest in over a year, while government bonds saw some of their biggest inflows in decades. “It definitely is to do with developments in the banking sector,” said Kirstine Kundby-Nielsen, FX analyst at Danske Bank, on why the franc wasn’t stronger. “You still have some of the safe-haven hedging properties in the Swiss franc but it can only take so much when the risk ends up being so concentrated in the Swiss economy and the Swiss financial sector,” Kundby-Nielsen added. Speculators added over $800 million to their bearish positions on the Swiss franc in the week to March 21, according to data from the Commodities Futures Trading Commission, the most in one week since early March 2021. Graphic: Franc, yen, gold, https://fingfx.thomsonreuters.com/gfx/mkt/dwvkdkjxgpm/Pasted%20image%201679581765182.png On Sunday, the Swiss National Bank (SNB) orchestrated a $3 billion deal for UBS to buy rival Credit Suisse, backed by a massive guarantee of up to $260 billion, a third of the country’s national output, in state and central bank support. “If it hadn’t been Credit Suisse, but any other European bank getting into trouble, you would have seen the Swiss franc rising sharply because it would have been the safe haven for European risk,” said Francesco Pesole, FX strategist at ING. Research from the SNB in 2016 found that in previous crises, flows into Switzerland and the franc were driven by weaknesses elsewhere. Futures data shows speculators poured money into bullish bets on the Swissie after the dot-com bubble burst in early 2000, after the 9/11 attacks in 2001, and again in 2008 and 2011-2012, during the euro zone debt crisis and once more during the COVID crisis. During the collapse of Lehman Brothers in 2008, net inflows were driven by a “substantial retrenchment” into the domestic market by Swiss banks, while in the euro area banking crisis from mid-2011, the SNB found that moves away from the euro and into the franc were driven by foreign banks moving assets from the euro area branches into their Swiss branches. “The current setup doesn’t argue for either of those things. U.S. bank stresses have been contained in regional banks and euro area banks have so far been relatively unscathed,” said Michael Cahill, senior FX strategist at Goldman Sachs. “The franc is not an ‘all-weather’ safe haven and so far we’ve not had the type of market pressures that would typically lead to franc appreciation,” he said. SWISS It’s one thing for the franc to have lost some favour among investors during a Swiss-centric crisis, but quite another to suggest its days as a safe haven are numbered. For the Swiss franc to lose its status as a safe haven, FX strategists at Barclays say “fundamental changes” in the country’s balance sheet would be required, with the share of Swiss-issued assets in external liabilities required to fall via “large and sustained” outflows. “This would lead to an increase in domestic interest rates, thereby increasing the yield Switzerland’s external liabilities pay and further weighing on the country’s yield differential,” Barclays FX strategists, led by Lefteris Farmakis, said. “In such a scenario, the SNB would likely attempt to smooth out the transition by cushioning capital outflows,” Farmakis said. Barclays said the odds of a “sudden stop” episode are extremely low despite the current banking turmoil, but a more difficult question to answer is whether confidence in the financial system has been eroded to a degree that a “slow burn” episode may have started. “Fortunately,” Barclays says, “this scenario has limited repercussions for the franc over the foreseeable future.” (Reporting by Samuel Indyk, additional reporting by Lucy Raitano; Editing by Amanda Cooper, William Maclean)

Swiss franc grapples with safe-haven identity crisis after Credit SuisseBy Samuel Indyk LONDON (Reuters) – The Swiss franc hasn’t lived up to its safe-haven reputation during the Credit Suisse collapse, as investors have sought shelter elsewhere, bringing more of a boost to the value of the gold in Switzerland’s bullion vaults than to its currency. Money managers ditched the Swiss franc at the fastest rate in two years last week in the run-up to the dramatic takeover of Credit Suisse by UBS. The Swissie, often used as a refuge in times of market stress or volatility, lost 0.9% against the dollar in the week after the Swiss finance department said regulators were closely monitoring the situation at Credit Suisse on March 13. In that same time, Japan’s yen, which is also seen as a refuge in times of tumult, rose 2.6% against the dollar. Gold, another traditional safe haven, rose over 5% in the week after March 13 to above $2,000 an ounce, its highest in over a year, while government bonds saw some of their biggest inflows in decades. “It definitely is to do with developments in the banking sector,” said Kirstine Kundby-Nielsen, FX analyst at Danske Bank, on why the franc wasn’t stronger. “You still have some of the safe-haven hedging properties in the Swiss franc but it can only take so much when the risk ends up being so concentrated in the Swiss economy and the Swiss financial sector,” Kundby-Nielsen added. Speculators added over $800 million to their bearish positions on the Swiss franc in the week to March 21, according to data from the Commodities Futures Trading Commission, the most in one week since early March 2021. Graphic: Franc, yen, gold, https://fingfx.thomsonreuters.com/gfx/mkt/dwvkdkjxgpm/Pasted%20image%201679581765182.png On Sunday, the Swiss National Bank (SNB) orchestrated a $3 billion deal for UBS to buy rival Credit Suisse, backed by a massive guarantee of up to $260 billion, a third of the country’s national output, in state and central bank support. “If it hadn’t been Credit Suisse, but any other European bank getting into trouble, you would have seen the Swiss franc rising sharply because it would have been the safe haven for European risk,” said Francesco Pesole, FX strategist at ING. Research from the SNB in 2016 found that in previous crises, flows into Switzerland and the franc were driven by weaknesses elsewhere. Futures data shows speculators poured money into bullish bets on the Swissie after the dot-com bubble burst in early 2000, after the 9/11 attacks in 2001, and again in 2008 and 2011-2012, during the euro zone debt crisis and once more during the COVID crisis. During the collapse of Lehman Brothers in 2008, net inflows were driven by a “substantial retrenchment” into the domestic market by Swiss banks, while in the euro area banking crisis from mid-2011, the SNB found that moves away from the euro and into the franc were driven by foreign banks moving assets from the euro area branches into their Swiss branches. “The current setup doesn’t argue for either of those things. U.S. bank stresses have been contained in regional banks and euro area banks have so far been relatively unscathed,” said Michael Cahill, senior FX strategist at Goldman Sachs. “The franc is not an ‘all-weather’ safe haven and so far we’ve not had the type of market pressures that would typically lead to franc appreciation,” he said. SWISS It’s one thing for the franc to have lost some favour among investors during a Swiss-centric crisis, but quite another to suggest its days as a safe haven are numbered. For the Swiss franc to lose its status as a safe haven, FX strategists at Barclays say “fundamental changes” in the country’s balance sheet would be required, with the share of Swiss-issued assets in external liabilities required to fall via “large and sustained” outflows. “This would lead to an increase in domestic interest rates, thereby increasing the yield Switzerland’s external liabilities pay and further weighing on the country’s yield differential,” Barclays FX strategists, led by Lefteris Farmakis, said. “In such a scenario, the SNB would likely attempt to smooth out the transition by cushioning capital outflows,” Farmakis said. Barclays said the odds of a “sudden stop” episode are extremely low despite the current banking turmoil, but a more difficult question to answer is whether confidence in the financial system has been eroded to a degree that a “slow burn” episode may have started. “Fortunately,” Barclays says, “this scenario has limited repercussions for the franc over the foreseeable future.” (Reporting by Samuel Indyk, additional reporting by Lucy Raitano; Editing by Amanda Cooper, William Maclean)

By Samuel Indyk LONDON (Reuters) – The Swiss franc hasn’t lived up to its safe-haven reputation during the Credit Suisse c..

Headlines

Mar 24, 2023 · 4 min read

StanChart CEO says AT1 bond wipeout has profound impact

StanChart CEO says AT1 bond wipeout has profound impact

By Selena Li HONG KONG (Reuters) -Standard Chartered Chief Executive Bill Winters said on Friday Credit Suisse AG’s $17 billion ..

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Mar 24, 2023 · 2 min read

UK consumer mood hits one-year high, but financial gloom persists

UK consumer mood hits one-year high, but financial gloom persists

(Reuters) – British consumer confidence rose this month to its highest level in a year, helped by improving sentiment around the..

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Mar 24, 2023 · 2 min read

Tourists to get chance to walk in King Charles’ coronation footsteps

Tourists to get chance to walk in King Charles’ coronation footsteps

LONDON (Reuters) – London’s Westminster Abbey said visitors will get the chance this summer to follow King Charles’ ..

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Mar 24, 2023 · 2 min read

Denmark invites Nord Stream operator to help salvage unidentified object

Denmark invites Nord Stream operator to help salvage unidentified object

By Jacob Gronholt-Pedersen COPENHAGEN (Reuters) – Denmark on Thursday invited the Russian-controlled operator of the Nord Stream..

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Mar 24, 2023 · 2 min read

Finnish businessman Zilliacus ready to pay premium for Manchester United

Finnish businessman Zilliacus ready to pay premium for Manchester United

By Akash Sriram (Reuters) – Finnish entrepreneur Thomas Zilliacus has placed a bid for Manchester United and is willing to pay a..

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Mar 24, 2023 · 2 min read

Virgin Orbit says space startup in talks with potential investors

Virgin Orbit says space startup in talks with potential investors

(Reuters) – Billionaire Richard Branson’s cash-strapped satellite launch company Virgin Orbit Holdings said on Thursday it..

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Mar 24, 2023 · 3 min read

New York holds top spot, London second in Z/Yen financial centre survey

New York holds top spot, London second in Z/Yen financial centre survey

LONDON (Reuters) – New York kept the top spot in the latest rankings of global financial centres from Z/Yen Group on Thursday, w..

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Mar 23, 2023 · 2 min read

Norway wealth fund to vote for labour rights motion at Starbucks AGM

Norway wealth fund to vote for labour rights motion at Starbucks AGM

OSLO (Reuters) – Norway’s $1.3 trillion wealth fund, one of the world’s largest investors, will vote in favour of a ..

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Mar 23, 2023 · 2 min read

Swiss National Bank raises rates, says bank crisis stopped

Swiss National Bank raises rates, says bank crisis stopped

By John Revill ZURICH (Reuters) -The Swiss National Bank raised its benchmark interest rate by 50 basis points on Thursday and declare..

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Mar 23, 2023 · 2 min read

HSBC appoints new markets head amid wider investment bank reshuffle

HSBC appoints new markets head amid wider investment bank reshuffle

By Lawrence White LONDON (Reuters) – HSBC has appointed Patrick George as head of markets and securities services, according to ..

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Mar 23, 2023 · 1 min read

Zur Rose delays profitability break-even to 2024

Zur Rose delays profitability break-even to 2024

By Anastasiia Kozlova and Tristan Chabba (Reuters) – Swiss online drug retailer Zur Rose on Thursday said it will not reach brea..

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Mar 23, 2023 · 2 min read

Lloyd’s of London swings to 2022 pre-tax loss

Lloyd’s of London swings to 2022 pre-tax loss

FRANKFURT (Reuters) – Lloyd’s of London swung to a pre-tax loss in 2022 and took writedowns on its fixed-income investment..

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Mar 23, 2023 · 1 min read

Oil dips after Fed comments, US crude stock build

Oil dips after Fed comments, US crude stock build

By Stephanie Kelly and Jeslyn Lerh SINGAPORE (Reuters) -Oil prices fell on Thursday following three sessions of gains, after Federal R..

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Mar 23, 2023 · 2 min read

Bitcoin falls 4.5% to $26,916

Bitcoin falls 4.5% to $26,916

(Reuters) – Bitcoin dropped 4.5% to $26,916 at 20:07 GMT on Wednesday, losing $1,276 from its previous close. Bitcoin, the world..

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Mar 23, 2023 · 1 min read

Inflation boosts Jeronimo Martins’ Q4 profit but dents margins

Inflation boosts Jeronimo Martins’ Q4 profit but dents margins

LISBON (Reuters) – Portugal’s second-largest retailer Jeronimo Martins on Wednesday posted a 23% jump in fourth-quarter ne..

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Mar 23, 2023 · 2 min read

Exclusive-Ardian explores taking Italian tower operator INWIT private-sources

Exclusive-Ardian explores taking Italian tower operator INWIT private-sources

By Milana Vinn and Amy-Jo Crowley (Reuters) – French investment firm Ardian is in the early stages of exploring a bid for Italy&..

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Mar 23, 2023 · 2 min read

Oil up 2% as dollar weakens on small US Fed rate hike

Oil up 2% as dollar weakens on small US Fed rate hike

By Scott DiSavino NEW YORK (Reuters) -Oil prices rose about 2% to a one-week high on Wednesday as the dollar slid to a six-week low af..

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Mar 22, 2023 · 3 min read

Fed in spotlight with US focus on stability, First Republic

Fed in spotlight with US focus on stability, First Republic

By Nupur Anand, Andrea Shalal and Balazs Koranyi (Reuters) – U.S. authorities are set to explore ways to bolster financial stabi..

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Mar 22, 2023 · 6 min read

Stellantis to invest 130 million euros in German plant for new Opel electric car

Stellantis to invest 130 million euros in German plant for new Opel electric car

MILAN (Reuters) – Carmaker Stellantis said on Wednesday it would invest 130 million euros ($140 million) in its Eisenach assembl..

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Mar 22, 2023 · 2 min read

Crop merchant Louis Dreyfus gets profit boost in volatile year

Crop merchant Louis Dreyfus gets profit boost in volatile year

By Gus Trompiz PARIS (Reuters) -Louis Dreyfus Company (LDC) on Wednesday reported a 44% jump in 2022 net profit, joining other global ..

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Mar 22, 2023 · 3 min read

Banking turmoil will not have knock-on effect on commodities -Trafigura CFO

Banking turmoil will not have knock-on effect on commodities -Trafigura CFO

By Julia Payne LAUSANNE, Switzerland (Reuters) -The recent rout in bank shares will not have a knock-on effect on commodities, global ..

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Mar 22, 2023 · 2 min read

Britain’s Superdry sells Asia Pacific IP for $50 million

Britain’s Superdry sells Asia Pacific IP for $50 million

LONDON (Reuters) – Struggling British fashion brand Superdry has sold its intellectual property assets in much of the Asia Pacif..

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Mar 22, 2023 · 1 min read