Cross-Border Payments: How The Passion of The G20 Drives Improvement
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Reuters
18 minutes ago
- Reuters
Global shares flat amid Ukraine talks, ahead of Jackson Hole
NEW YORK/LONDON, Aug 18 (Reuters) - Wall Street and European shares ended flat to modestly lower on Monday ahead of a key central bank gathering later in the week that likely will determine the future path of U.S. interest rate policy. Investors also focused on the meeting between Ukraine's Volodymyr Zelenskiy and President Donald Trump. The U.S. leader said on Monday the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine. Both heads of state are also pushing for a trilateral meeting with Russian President Vladimir Putin. Financial markets, however, reacted little to news out of the Ukraine talks. "I don't really see anything big in this or anything new or tangible," said Marc Chandler, chief market strategist at Bannockburn Forex in New York. "For Ukraine and the EU, their argument is basically Russia took Crimea and it wasn't good enough for them. Now they're trying to take more of Ukraine. And even now with all these negotiations going on, Russia is trying to make a bigger offensive push." The Zelenskiy meeting followed the Alaska summit with Putin, which did not result in an agreement. Trump after the Alaska talks with Putin appeared more aligned with Moscow on seeking a full peace deal instead of a ceasefire first. The S&P 500 (.SPX), opens new tab closed little changed on Monday, but remained within striking distance of its all-time high hit on Friday. The pan-European STOXX 600 index (.STOXX), opens new tab ended the day slightly higher after reaching its strongest level since March last week, which left the MSCI All Country World Index (.MIWD00000PUS), opens new tab also slightly lower, but not far from its record high touched on Friday. Earlier in the Asian session, indexes in Japan and Taiwan hit record peaks, while a gauge of Chinese stocks (.SSEC), opens new tab reached its highest level in a decade. Another key focus for the week is the Federal Reserve's August 21-23 Jackson Hole symposium, where Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework. U.S. rate futures market has priced in an 85% chance of a quarter-point rate cut at the Fed's meeting on September 17, and is pricing further easing by December. "Fed Chair Jerome Powell will likely signal Friday that risks to employment and inflation are becoming more balanced, which would imply lowering policy rates toward neutral," wrote Andrew Hollenhorst, chief U.S. economist at Citi in a research note. "But he will stop short of committing to a cut next month, awaiting jobs and inflation data for August." The prospect of lower borrowing costs globally has overall underpinned stock markets, and Japan's Nikkei (.N225), opens new tab climbed to a fresh record high. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab, ended flat on Monday having scaled a four-year peak last week. In Europe, Germany's DAX (.GDAXI), opens new tab eased 0.2%. Britain's FTSE (.FTSE), opens new tab was up 0.2%. In the United States, the rally in stocks has been underpinned by a solid earnings season as the S&P 500 EPS grew 11% on the year and 58% of companies raised their full-year guidance. "Earnings results have continued to be exceptional for the mega-cap tech companies," said analysts at Goldman Sachs. This week's results will provide some color on the state of consumer spending in the country, with Home Depot, Target, Lowe's and Walmart all reporting. In bond markets, the yield curve steepened, with the gap between two-year and 10-year Treasury yields hitting 57.8 basis points . That's the largest gap since mid-July. Rates on the long end of the curve rose much faster than those on the front end, suggesting higher inflation expectations. In the FX market, wagers on more Fed easing have weighed on the dollar, which dropped 0.3% against a basket of currencies on Monday and last stood at 98.114 . The dollar rose 0.4% versus the yen to 147.82 , while the euro fell 0.3% to $1.1667 . In commodity markets, gold was flat at $3,333 an ounce after losing 1.9% last week. Oil prices rose in the aftermath of the meeting between Trump and Zelenskiy, which did not really yield meaningful results . Brent was up 1% at $66.52 a barrel, while U.S. crude stood at $63.34 per barrel, up 0.9%.
Daily Mail
18 minutes ago
- Daily Mail
Watches of Switzerland ticks off Labour as it becomes latest firm to call for an end to the tourist tax
Watches of Switzerland is the latest business to blast Labour for its refusal to axe the tourist tax. Retailers have been fuming after The Mail on Sunday revealed the Treasury had dismissed calls for VAT-free shopping for foreign visitors to be restored at the upcoming Budget. Britain's biggest Breitling seller has said the move would be a 'quick win' to boost the economy. And the current system means rivals in Paris and Milan are being handed a 'competitive advantage'. More than 500 business leaders have backed The Mail's campaign to bring back the refund scheme, arguing it would encourage tourists to visit the UK. They have been highlighting the hit to the visitor economy since Rishi Sunak's much-loathed 2021 move as Chancellor to axe the scheme. A spokesman for Watches of Switzerland said: 'If the Government wants to drive economic growth then the restoration of VAT-free shopping is a no-brainer. It would be a quick win.'
Reuters
18 minutes ago
- Reuters
Italy's Mediobanca gets ECB approval for Banca Generali deal
MILAN, Aug 18 (Reuters) - Italy's merchant bank Mediobanca ( opens new tab received European Central Bank approval on Monday to buy private bank Banca Generali ( opens new tab and create Italy's second-largest wealth manager, as it seeks to thwart a takeover bid from Monte dei Paschi di Siena ( opens new tab. The ECB has also approved the acquisition of direct and indirect shareholdings that together amount to more than 10% of the Mediobanca Banking Group's consolidated own funds. The ECB's green light paves the way for merchant bank Mediobanca to launch its offer if it wins shareholder backing at a vote due on August 21. Mediobanca had originally scheduled the vote for June but had to push it back as the proposal lacked sufficient support. Meanwhile, state-backed Monte dei Paschi (MPS) is attempting to buy Mediobanca, amid a consolidation wave sweeping Italian banking. By cutting its MPS stake to below 12% from the 68% it acquired in a 2017 bailout, Rome has brought on board as leading MPS shareholders, Italy's billionaire Del Vecchio and Caltagirone families. To fend off the MPS bid, Mediobanca CEO Alberto Nagel, in April proposed buying Banca Generali, which is owned by Generali ( opens new tab, Italy's biggest insurer, whose key investors are Mediobanca, the Del Vecchios and the Caltagirones. Under Italian takeover rules, Mediobanca needs shareholder approval for the Banca Generali deal due to the MPS bid, which would become more costly if Mediobanca buys Banca Generali. Generali, which would acquire its own shares by tendering its 50.2% Banca Generali stake, said this month it was open to continue discussing the proposal.
