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Economic Times
a day ago
- Business
- Economic Times
Euro zone bonds struggle for direction after Ukraine talks, eyes on Jackson Hole
Euro zone government bonds were in a holding pattern on Tuesday as traders looked ahead to a symposium of global central bankers later in the week, and after talks in Washington on ending Russia's war in Ukraine. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Euro zone government bonds were in a holding pattern on Tuesday as traders looked ahead to a symposium of global central bankers later in the week, and after talks in Washington on ending Russia's war in Secretary General Mark Rutte told Fox News on Monday that U.S. President Donald Trump 's meeting with Ukrainian President Volodymyr Zelenskiy and other European and NATO partners had been very a social media post late on Monday, Trump said he had called Russian President Vladimir Putin and begun arranging a meeting between Putin and Zelenskiy, to be followed by a trilateral summit among the three presidents. However, questions remain on security guarantees and whether a ceasefire or peace agreement is the best way 10-year bond yield, the euro zone benchmark, was down about 1 basis point (bp) at 2.763%. It hit a 4-1/2 month high of 2.787% on Monday. Yields move inversely with two-year yield, which is sensitive to changes in interest rate expectations, was steady at 1.968%."The easy explanation for the inactivity in the market today is that we don't know about progress in the Ukraine talks," said Rene Albrecht, analyst at DZ Bank "The next issue is monetary policy in the U.S. and the discussion about whether the Fed is going to cut in September or not."Federal Reserve Chair Jerome Powell is due to speak at the Kansas City Fed's annual symposium in Jackson Hole, as money market traders stick with their bets for a rate cut next imply around an 85% chance of a quarter-point rate cut at September 16-17 meeting, little changed from the day before. The Fed's policy rate has been in the 4.25%-4.50% range since size and importance of the U.S. economy means changes in Fed rate expectations often influence European and other bond markets Expectations for European Central Bank interest rates remain well-anchored in the near term, with markets expecting the central bank to remain on hold in 10-year bond yield was down 1 bp at 3.584%, keeping the spread between Italian and German 10-year yields unchanged at 82 gap between Italian and French 10-year yields continues to narrow, last at about 13.5 bps."(Italian Prime Minister Giorgia) Meloni has brought calm back to Italian politics and the path of the budget is in line with EU norms," DZ Bank's Albrecht said."France is totally different. You have a risk in Paris that the National Assembly fires the prime minister and then you have the political instability issue again."France's Prime Minister Francois Bayrou unveiled his 2026 budget plan in July that included almost 44 billion euros ($51.39 billion) of budget is likely to draw resistance from opposition Socialist lawmakers when parliament returns from recess next month, putting Bayrou's government at risk of being toppled.($1 = 0.8562 euros)
Finextra
28-05-2025
- Business
- Finextra
EBAday 2025: Digital euro emerging as a transformative force
At EBAday 2025, two expert panels explored how the digital euro and real-time data can transform finance and beyond — shaping future digital money, guiding PSPs, and helping corporates and SMEs enhance liquidity through automation. 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Reinventing money In the first panel, panellists discussed how the digital euro is emerging as a transformative force, raising key questions around future requirements and the broader benefits. Speakers Andrea Meier, DZ Bank; Bruno Mellado, BNP Paribas; Daniel McLean, European Central Bank; Nils Beier, Accenture, and Ville Sointu, Nordea Bank, were moderated by Petia Niederländer, Oesterreichische Nationalbank. Niederländer opened by asking Beier, whether European banks are prepared given developments in the past 12 months - such as tariff policies, stablecoins, tokenised deposits, and innovations such as digital wallets and AI. Beier identified three areas of change: digital assets, international payments, and European retail payments, noting that while banks are experimenting, 'what we see as missing is a joint public private vision strategy that lays the foundation for the industry to move on, supported by the public sector.' Following the importance of public private partnerships, Niederländer asked McLean for an update on the digital euro project. McLean outlined two phases: first, investigating the digital euro's purpose and use cases; the second, nearly completed stage, involves preparing the technology, infrastructure, and key players 'so when, and we hope the legislature, will give us a big thumbs up to go ahead with the digital Euro, we'll be ready to implement it now' explained McLean. Sointu commenting on banks' technology readiness for the digital euro, stressed the need for customer-facing solutions, 'if you look at the definition of a bank as an intermediary for digital euro, we have to take care of all customer facing responsibilities, including changes in every customer touch point, not accounting the different form factors being discussed in terms of distribution, including physical cards and all possible digital form factors.' Meier mentioned focusing on delivering solutions for corporate customers now, rather than waiting for international solutions. 'We need to deliver our customer needs now, we are not focusing on deliverables in three or four years. Therefore we see use cases for digital money for our corporate customers, but the use cases now are in delivering money and payment on DLT base.' Mellado added how there is a need to 'make these account ledgers from central banks, from banks, so they speak to each other in a much more efficient and atomic way. That's the key battle we have to fight.' Niederländer then posed a question around the biggest threat to European sovereignty in payments and financial transactions. Meier discussed the importance of international cooperation and the role of the digital euro in fostering private solutions, with Sointu emphasising the role of the digital euro in solving interoperability issues. The conversation then turned to the benefits of the digital euro, and the role of the project in supporting innovation. Meier outlined the ECB's efforts to facilitate innovation through workstreams with market participants, with McLean reiterating the ECB's commitment to facilitating innovation. Mellado mentioned the importance of addressing liquidity costs and the potential for the digital euro to improve international payments, with Beier highlighting the potential for B2B use cases. Concluding the panel, Niederländer emphasised the need for stronger European cooperation between public and private sectors to effectively advance innovation. Liquidity management and real-time payments The following panel, moderated by Joost Bergen, examined how real-time data and automation can enhance liquidity for corporates and SMEs, and what's needed to achieve real-time cashflow and Treasury as a Service. Speakers included: Alexandre Eclapier, J.P. Morgan; Gauthier Jonckheere, BNY; Ritu Sehgal, Natwest; Tarun Kishore Sonwalkar, Infosys Finacle, and Wim Grosemans, BNP Paribas. The moderator, Joost Bergen, opened by asking about the difference between real-time payments and real-time data. Sehgal explained the distinction, emphasising the complexity of the cash cycle, 'it's the whole of the cash cycle that means receiving payments and sending payments in real time. They're at quite different evolution stages, so the adoption level for one over the other depends on where the corporation is in the life cycle.' On the need for reliable and quality data, Grosemans commented 'real time, data on demand, is key but the question is, where does that have to come from? that's where we also see an important task from our customers, to work further on strategies to ensure consolidation.' Eclapier then summarised how real-time data and payments are seen as essential for better liquidity management and investment opportunities, focusing on three main pillars of liquidity management: 'visibility is about the data you can receive in real time. The control is where the payment fits in, how you move money from one account to another, which can happen on a real time basis. Once you have a combination of both, that's when you can optimise, focusing on the investment opportunities, reducing the boring costs.' Jonckheere mentioned the increasing demand for real-time data driven by regulatory requirements and data analytics. 'Real time data is a big focus for clients to enable their underlying corporate proposition, this is starting to translate into the benefits real time payment could bring into certain use cases', explained Jonckheere. The conversation then turned to the need for better data analytics and AI to support real-time decision-making. Sonwalkar noted 'It's still early days in terms of whether it will be a fully automated AI predictive Treasury as a service on Cloud, available for everybody. That's probably something that on the horizon we are all looking forward to as it reduces the total infrastructure cost and automates a lot of things. Today, what we see in the market is more modular, connected, and integrated.' The potential for Treasury as a Service to support better liquidity management and decision-making is acknowledged, with Bergen summarising the key points discussed, emphasising the importance of liquidity in payments.
Bloomberg
05-05-2025
- Business
- Bloomberg
Futures Drop on Trade Uncertainty, OPEC+ Supply Surge
Stock futures drop as uncertainty around US trade policy hung over markets, threatening the end of the S&P 500's longest winning streak in two decades. Oil prices fall as OPEC+ agreed to increase output, raising concerns over a global glut. Warren Buffett's surprise announcement that he will step down as CEO of Berkshire Hathaway by the end of the year drags shares down in pre-market trading. Sonja Marten of DZ Bank says we shouldn't write off the dollar despite its rapid depreciation and Jack Caffrey of JPMorgan Asset Management says the Fed wants to be friendlier. 'Bloomberg Brief' delivers the market news, data and analysis you need to set your agenda. (Source: Bloomberg)
Shafaq News
03-04-2025
- Business
- Shafaq News
USD hits 6-month low due to Trump's new tariffs
Shafaq News/ The US dollar suffered its worst performance in nearly six months on Thursday, following the announcement of new tariffs by President Donald Trump. The US Dollar Index, which measures the currency's value against a basket of major currencies, dropped 2.29% to 101.4310 points. Sonia Martin, Head of Monetary Policy and Currency Research at DZ Bank in Frankfurt, told Bloomberg, "The dollar was the biggest loser in yesterday's financial events." This decline came after President Trump announced a 10% tariff on all US imports and higher duties on some of the country's largest trade partners.
Reuters
28-02-2025
- Business
- Reuters
China's manufacturing activity set to contract for second month in Feb
BEIJING, Feb 28 (Reuters) - China's factory activity likely contracted for a second month in February, keeping alive calls for even more stimulus to prop up depressed domestic demand in the world's second-largest economy as manufacturers brace for fresh U.S. tariffs. A Reuters poll of 21 economists forecast the official purchasing managers' index (PMI) will come in at 49.9, up from January's 49.1 but still below the 50-point threshold that separates growth from contraction in activity. China's $18 trillion economy hit the government's growth target of "around 5%" in 2024 though in an uneven manner, with exports and industrial output far outpacing retail sales while unemployment remained stubbornly high. Beijing is expected to maintain the same growth target this year, but analysts are uncertain over how quickly policymakers can revive sluggish demand, even as U.S. President Donald Trump's punitive trade curbs put more pressure on Chinese exporters. To sustain growth and counter rising external pressures, policymakers have pledged higher fiscal spending, increased debt issuance and further monetary easing. Trump on Thursday said he would slap an extra 10% duty on Chinese goods on March 4, on top of the 10% tariff that he levied on Feb 4 over the fentanyl opioid crisis, to push Beijing to do more to stop the trafficking of the deadly drug. That would result in a cumulative 20% tariff, which is still lower than the 60% curb he threatened on the campaign trail. More than half of respondents expect the PMI to show factory conditions worsened in February, with Pantheon, a global markets investor, returning the lowest reading of 49.0. Six forecast a return to expansion, led by DZ Bank who predicted a PMI of 50.5. Investors are looking to the annual parliament meeting that will begin on March 5, when the government is expected to unveil fresh stimulus measures, alongside economic targets. Further support for the struggling property sector and indebted local developers could also be announced, which significantly impacts domestic demand and local government finances. Getting Chinese consumers spending again would reduce producers' exposure to Trump's tariff threats. Analysts polled by Reuters forecast the private sector Caixin PMI rose 50.3, from 50.1 in January. The data will be released on March 3.
