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Yahoo
2 days ago
- Business
- Yahoo
Is IBM cool again?
In today's CEO Daily: Diane Brady on IBM's new Manhattan HQ. The big story: Trump complains Xi is 'extremely hard to make a deal with'. The markets: Up despite China deal and metals tariffs drama. Analyst notes from Convera, EY, and UBS. Plus: All the news and watercooler chat from Fortune. Good morning. Is IBM cool again? During a NY Tech Week reception last night at IBM's new Manhattan headquarters, I quietly asked that question to some attendees. One person cited Watson, the early chatbot that famously won Jeopardy! in 2011, as proof of both the company's pioneering innovation, and its ability to lose a big lead. Others pointed to a positive shift that's happened since Arvind Krishna became CEO of Big Blue in April 2020, both in terms of the stock price and meaningful growth in realms like AI. My colleague Sharon Goldman explores IBM's rebound in our Fortune 500 package that published this week. In many ways, it's a model of resilience, having appeared on the Fortune 500 every year since debuting at No. 61 on the inaugural list in 1955. But it was the only brand among 17 U.S. tech companies valued at $100 billion or more to have lost market value over the past eight years when Krishna took over. Krishna is a 35-year IBM veteran who's also its first CEO to boast an engineering background. And as Goldman writes, he was struck early on by the potential of AI. She writes: 'Krishna, a PhD engineer with decades of research experience, instantly recognized a game changer—and a huge opportunity. Once these models were mature enough, he realized, they would be able to help businesses handle everything from customer service to chemistry equations to climate modeling with unprecedented scale and efficiency—creating powerful new products for IBM to sell.' Goldman adds that he has 'steered billions in R&D money into new AI 'foundation models' and the infrastructure to support them. He also pushed the company to prepare for the rise of AI by updating its hybrid cloud platform—data-storage technology that Krishna had championed as the head of IBM's cloud division.' With the stock up over 20% year to date, there are certainly glimmers that Big Blue could be gaining momentum. Krishna is certainly up for the challenge. As he told Sharon: 'Engineers don't get scared about building big things.' Read Sharon's full story here. More news CEO Daily via Diane Brady at This story was originally featured on Sign in to access your portfolio
Reuters
3 days ago
- Business
- Reuters
Canadian dollar outperforms most G10 currencies ahead of BoC rate decision
TORONTO, June 3 (Reuters) - The Canadian dollar edged lower against its U.S. counterpart on Tuesday but was performing better than all the other Group of 10 currencies, as oil prices rose and investors awaited a Bank of Canada interest rate decision this week. The loonie was trading 0.1% lower at 1.3725 per U.S. dollar, or 72.86 U.S. cents, after trading in a range of 1.3702 to 1.3742. All the other G10 currencies posted bigger declines as the U.S. dollar (.DXY), opens new tab clawed back some of its recent broad-based losses. "With the BoC meeting ahead, investors are watching Governor (Tiff) Macklem for signals on rate cuts," said Kevin Ford, FX & macro strategist at Convera. "Sticky core inflation and an OK Q1 GDP have tempered expectations for further easing." The Canadian central bank will hold its benchmark interest rate at 2.75% on Wednesday as policymakers await further news on an economy that grew faster than expected last quarter, with at least two more cuts likely this year, according to a majority of economists in a Reuters poll. Overnight index swaps are pricing in a roughly 75% chance the BoC stays sidelined on Wednesday. The central bank left rates on hold in April for the first time since its easing campaign began in June last year. The price of oil , one of Canada's major exports, rose as the war in Ukraine ramped up and Iran was a U.S. nuclear deal proposal. U.S. crude oil futures were trading 1.7% higher at $63.58 a barrel. Wildfires burning in Canada's oil-producing province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude oil output, according to Reuters calculations. Canadian bond yields rose across a steeper curve, with the 10-year up 4.4 basis points at 3.270%.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Canadian dollar outperforms eight G10 currencies as investors await BoC rate decision
The Canadian dollar edged lower against its U.S. counterpart on Tuesday but was performing better than all the other Group of 10 currencies, as oil prices rose and investors awaited a Bank of Canada interest rate decision this week. The loonie was trading 0.1 per cent lower at 1.3725 per U.S. dollar, or 72.86 U.S. cents, after trading in a range of 1.3702 to 1.3742. All the other G10 currencies posted bigger declines as the U.S. dollar clawed back some of its recent broad-based losses. 'With the BoC meeting ahead, investors are watching Governor (Tiff) Macklem for signals on rate cuts,' said Kevin Ford, FX & macro strategist at Convera. 'Sticky core inflation and an OK Q1 GDP have tempered expectations for further easing.' The Canadian central bank will hold its benchmark interest rate at 2.75 per cent on Wednesday as policymakers await further news on an economy that grew faster than expected last quarter, with at least two more cuts likely this year, according to a majority of economists in a Reuters poll. Overnight index swaps are pricing in a roughly 75 per cent chance the BoC stays sidelined on Wednesday. The central bank left rates on hold in April for the first time since its easing campaign began in June last year. The price of oil, one of Canada's major exports, rose as the war in Ukraine ramped up and Iran was set to reject a U.S. nuclear deal proposal. U.S. crude oil futures were trading 1.7 per cent higher at $63.58 a barrel. Wildfires burning in Canada's oil-producing province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7 per cent of the country's overall crude oil output, according to Reuters calculations. Canadian bond yields rose across a steeper curve, with the 10-year up 4.4 basis points at 3.270 per cent.
Reuters
29-05-2025
- Business
- Reuters
Sterling ticks higher as strong data, trade deal buffer against stronger dollar
May 29 (Reuters) - The pound ticked higher versus the dollar on Thursday, one of the few major currencies holding its ground against the greenback which earlier surged after a court blocked U.S. President Donald Trump from imposing import tariffs on other countries. At 0942 GMT, the pound was up 0.12% against the dollar at 1.347 . Elsewhere, the euro, Japanese yen and Swiss franc all fell versus the dollar. Nevertheless the pound remains a fraction below the 1.359 level touched on Tuesday, its highest against the greenback since February 2022. "Due to the court ruling that Trump's tariffs are illegal, the pound has given back a chunk of gains made against the U.S. dollar," said George Vessey, lead FX & Macro Strategist at Convera in a note, though he added it remains above its 21-day moving average, a signal that a recent uptrend is still intact. The pound has gained almost 8% against the dollar in 2025 and is on track for its fourth consecutive monthly rise, as investors react to uncertain U.S. trade policy. It has also been boosted by strong data, including retail sales last week as well as the announcement of a UK-U.S. trade deal earlier this month. "GBP has done well in recent weeks on the back of U.S. and EU trade/reset deals, above-forecast consumer spending and less crowded positioning," said Kenneth Broux, head of corporate research FX and rates at Societe Generale, also flagging that the market is pricing fewer Bank of England rate cuts. Last week's inflation print led traders to scrap bets for a cut at the BoE's meeting scheduled for June, with more than 97% of traders now expecting the central bank to hold rates . The central bank slashed the bank rate by 0.25 percentage points to 4.25% on May 8. The Confederation of British Industry said on Thursday that business confidence in Britain's services sector hit a two-and-a-half-year low in the quarter to May. Data from market researcher Kantar on Wednesday showed British grocery price inflation jumped to 4.1% for the four weeks to May 18, its highest level since February last year. Against the euro, the pound was up 0.1% at 83.72, on track for its seventh straight week of gains.
The Sun
20-05-2025
- Business
- The Sun
Weakening dollar reflects growing disinterest in ‘Brand USA'
NEW YORK: Trade-related uncertainties, ballooning fiscal debt and weakened confidence about enduring US exceptionalism have weighed on US assets, with the dollar one casualty. Investors see the currency losing more of its luster as the greenback comes back to earth from lofty valuations. The Trump administration's tariffs salvo this year prompted investors to cut exposure to US assets after a long period of overperformance. While the US currency steadied somewhat in recent sessions as investors took heart from a truce in the ongoing US-China trade war, it came under renewed selling pressure after ratings agency Moody's cut the US' pristine sovereign credit rating by one notch. 'There's plenty of room for further depreciation, purely from a valuation perspective,' said George Vessey, lead FX and macro strategist at payments firm Convera. The 'sell America' trade was back in focus after Moody's US credit downgrade, he said. The US dollar index has tumbled as much as 10.6% from its January highs, one of the sharpest retreats for a three-month period, leaving speculators net short the dollar to the tune of US$17.32 billion (RM74 billion), close to the most bearish position on the buck since July 2023, according to CFTC data. Part of the bearishness around the dollar has been due to the currency trading at a relatively rich valuation – in January trading as high as 22% above its 20-year average of 90.1 on the dollar index. Currently, the index is hovering about 10% above its 20-year average level. There is room for it to weaken significantly further, for example another 10% slide would take it to the lows touched during President Donald Trump's first term. Investors and strategists have viewed the dollar as overvalued for years but betting against the currency has proved painful time and again, as the US economy powered on. That could be about to change. Steve Englander, head of global G10 FX Research at Standard Chartered in New York, said that while recent trade arrangements might calm markets some, they do not address long-term confidence issues facing the US. 'The dollar weakness story is not over,' said Englander. Investors are also concerned about the long-term fiscal picture for the US. Analysts say Trump's sweeping tax-cut bill would add US$3 trillion to US$5 trillion to the nation's US$36.2 trillion in debt over the next decade. 'The combination of diminished appetite to buy US assets and the rigidity of a US fiscal process that locks in very high deficits is what is making the market very nervous,' George Saravelos, global head of FX research at Deutsche Bank, said in a note. The Trump administration has said it backs a strong-dollar policy. 'President Trump has been unequivocally clear about maintaining the strength and power of the US dollar as the world's reserve currency,' White House spokesman Kush Desai said. Despite recent foreign selling, years of US asset appreciation mean the world still holds trillions in US equities and Treasuries. Such selling pressure could come from various corners of the globe as more people zero in on the dollar's recent failure to act as a haven, investors said. 'That's really what gave people a jolt ... and say 'Well, if the dollar is no longer acting as a safe-haven currency, if it's not diversifying us any longer, should we really be holding this much of it?'' said Peter Vassallo, FX portfolio manager at BNP Paribas Asset Management. Colin Graham, head of multi-asset strategies at Robeco in London, however, said that while there had been a rebalancing of portfolios where people wanted to cut risk, 'it hasn't turned into people selling dollars, assets or equities or Treasuries to repatriate yet.' That could still follow, he said. The dollar's strength over the last decade had let market participants hold US assets without worrying too much about currency risk. With foreign holdings of US assets in trillions of dollars, per estimates from banks including Deutsche Bank, even a modest rise in hedge ratios – the portion of foreign currency exposure that is protected – could spell significant selling. Increased hedging by investors means less direct demand for the dollar and more dollar selling pressure in the forward markets. Asian economies including China, South Korea, Singapore and Taiwan have accumulated massive USD exposure as a result of a decades-long trend of investing big trade surpluses in US assets. An unprecedented two-day surge in Taiwan's currency in early May showed investors how a scramble out of the US dollar could roil markets. Eurizon SLJ Capital's Stephen Jen and Joana Freire said in a note in early May that USD hoardings of about US$2.5 trillion by Asian exporters and institutional investors 'pose sharp downside risks to the dollar vis-à-vis these Asian currencies.' – Reuters
