The U.S. Fed issued a revised proposal on the structure of payment accounts, taking the next step to build on an earlier pitch for so-called skinny accounts.
The Toronto Stock Exchange on Wednesday recovered much of the 500-plus points lost over the prior two sessions as CIBC said "the bar to get the Bank of Canada into a tightening stance is higher than the market thinks", amid fears higher rates would lift borrowing costs for many companies and sideline them and consumers when they are needed to help spur the economy.
The U.S. Federal Reserve proposed Wednesday adopting a new, more limited form of a payment account that would allow firms like fintechs to move money across the Fed's payment rails without enjoying all the backstops available to traditional banks.
Federal Reserve officials flagged the possibility of higher interest rates if the Middle East conflict drags on and keeps inflation above the 2% goal, minutes from the central bank's April meeting showed Wednesday.
Federal Reserve officials' concerns about inflation being stoked by the Iran war intensified last month, with a growing number open to a possible rate hike, in a sign that incoming Chair Kevin Warsh will inherit an increasingly hawkish crew of central bankers.
Citigroup Inc (C): * CITIGROUP SHAREHOLDERS MEETING BEGINS. * CITIGROUP CEO JANE FRASER SAYS U.S. CONSUMER CREDIT SHOWS BROAD RESILIENCY. * CITIGROUP CEO FRASER SAYS ASIAN ECONOMIES SHOWS THE HIGHER VULNERABILITIES TO HIGH FUEL PRICES. * CITIGROUP CEO FRASER SAYS MIDDLE EAST DYNAMICS STILL PRESENT SIGNIFICANT DOWNSIDE RISK TO GLOBAL ECONOMY.
A majority of FOMC participants appear to be leaning away from rate cuts for now and were open to the possibility of rate increases, minutes of the April 28-29 meeting released Wednesday showed.
* Fed policymakers see rising inflation risks, with rate hike possible. * April meeting saw four dissents, most since 1992, over policy direction. * Economists expectations shift toward no rate cuts. * Financial markets price in rate hike as Fed's next move. By Dan Burns.
April's Canadian consumer price index print came in on the dovish side on Tuesday, which led investors to dial back the chance of an imminent rate hike by the Bank of Canada, said Deutsche Bank. That showed headline CPI "only" rising to 2.8% year over year in April versus 3.1% expected, noted the bank.
UK shares closed higher on Wednesday after a softer-than-expected April inflation reading tempered some interest-rate-hike bets, while a drop in crude oil prices and stabilizing government bond yields also offered some respite.
European stock markets closed higher in Wednesday trading as the Stoxx Europe advanced 1.46%, Germany's DAX climbed 1.38%, the FTSE 100 rose 0.99%, France's CAC gained 1.7%, and the Swiss Market Index closed 0.26% higher. In the UK, the annual consumer price index rose 2.8% in the 12 months to April, down from 3.3% in March.
CIBC said its current rate forecast has both the Bank of Canada and the Federal Reserve on hold for an extended period, although it has penciled in a 25bps rate cut for the Fed in December conditional on an early end to the Iran war.
Canadian headline inflation was up 0.4% in April, not seasonally adjusted, just below the 0.5% increase UBS expected, but a "chunk" below the 0.7% increase consensus expected. This left the annual rate of inflation up 2.8% over the year. in April, a 0.4 percentage point acceleration versus the 2.4% in March. the 13% in March.
National Bank of Canada initiated coverage of Lumina Metals with an outperform rating and C$20 price target, according to a Wednesday note. The bank derived the price target from a 0.70x net asset value multiple on a fully financed project NAV plus corporate adjustments at par.
The Real Vision founder said that humanity is entering an ?exponential age? where AI, crypto and tokenization could rewrite finance, labor and culture.
Headline inflation rose 0.4 percentage point to 2.8% in April, staying below the Bank of Canada's forecast of around 3% year over year, said Societe Generale after Tuesday's consumer price index. Core inflation dipped to 2.0% year over year, the lowest since 2021, noted the bank.
Canadian inflation edged higher again in April, as the annual increase in prices climbed from 2.4% in March to 2.8%, but the increase was well below economists' consensus forecast of 3.1%, noted National Bank of Canada.
South Africa's rand, stocks and government bonds firmed on Wednesday after data showed April inflation accelerated sharply, raising expectations that the central bank could hike interest rates at its monetary policy meeting next week. * At 1300 GMT, the rand traded at 16.5950 against the dollar, up about 0.7% from its previous close.
Canadian headline consumer price index rose to 2.8% year over year in April from 2.4% in March, largely reflecting surging energy prices, said Nomura after Tuesday's CPI. Core inflation continued to cool with the Bank of Canada's preferred core measures averaging 2.1% year over year, the lowest since January 2021, noted Nomura.
* Investors pricing in higher rates in the face of rising inflation. * No end in sight for more than two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee and Harry Robertson.
Canada's sixth-largest bank selects Sardine's agentic risk platform after extensive evaluations Sardine, the leading agentic risk platform for fighting financial crime, today announced a multi-year partnership with National Bank of Canada (NTIOF), one of Canada?s largest financial institutions serving approximately 2.7 million clients globally.
The US dollar rose against its major trading partners early Wednesday, except for a decline versus the yen, as markets look ahead to the minutes of the April 28-29 Federal Open Market Committee meeting to be released at 2:00 pm ET. Before that, Federal Reserve Governor Michael Barr is due to speak at 9:15 am ET, followed by weekly petroleum stocks data at 10:30 am ET.
The rate on the most popular U.S. home loan rose last week to its highest in seven weeks, as concerns about inflation from higher oil prices and an uncertain outlook for the Iran war pushed benchmark U.S. Treasury yields higher. The average 30-year fixed-rate mortgage jumped 10 basis points to 6.56% for the week ended May 15, the Mortgage Bankers Association said on Wednesday.
The rate on the most popular U.S. home loan rose last week to its highest in seven weeks, as concerns about inflation from higher oil prices and an uncertain outlook for the Iran war pushed benchmark U.S. Treasury yields higher. The average 30-year fixed-rate mortgage jumped 10 basis points to 6.56% for the week ended May 15, the Mortgage Bankers Association said on Wednesday.
Fixes dateline to May 20. * Two new EX30 battery fires prompt Thai watchdog to weigh civil action. * Volvo faces complaints as customers await battery fixes after global recall. * Repair timelines vary, with some markets waiting until late-2026 for replacements. By Chayut Setboonsarng and Marie Mannes.
Sustained upward pressure on oil prices appears to be the sole focus of bond markets, said Bank of Montreal. Even the friendliest reading on core inflation in about five years couldn't halt the rout in Government of Canada bonds, noted the bank. Meanwhile, 30-year United States Treasury yields have rocketed to nearly 5.2%, the highest since June 2007, pointed out the BMO.
Federal Reserve officials' concerns about inflation being stoked by the Iran war intensified last month, with a growing number open to the possibility that they may need to raise interest rates, in a sign that incoming Chair Kevin Warsh will inherit an increasingly hawkish crew of central bankers.
* Fed policymakers split over inflation risks and future rate cuts. * April meeting saw four dissents, most since 1992, over policy direction. * Market and economist expectations shift toward no rate cuts, some see possible hikes. By Dan Burns.
* Investors pricing in higher rates in the face of rising inflation. * No end in sight for more than two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee and Harry Robertson.
Winner Medical has officially broken ground on its new manufacturing base in Hai Ha Industrial Park, Quang Ha Commune, Quang Ninh Province, Vietnam. Image: image1.jpeg From Foreign Trade to Local Manufacturing: A Solid Foundation for Globalization Winner Medical?s international journey began more than 30 years ago.
Emmanuel Moulin, President Emmanuel Macron's pick to head the Bank of France and his former chief of staff, said on Wednesday in hearings ahead of a vote by Parliament on Moulin's confirmation that he was sure he would run the national central bank in an independent manner.
Although some are puzzled by the coincidence of an artificial intelligence boom and rising borrowing costs, they are closely linked.Beyond the immediate heat of the AI investment frenzy, a long-term productivity surge is lifting estimates of neutral interest rates even as workers' share of the GDP pie declines. The idea remains controversial in some circles.
* Investor pricing in higher rates in the face of rising inflation. * No end in sight for the over two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee.
President Donald Trump signed an Executive Order on Tuesday directing regulators to take measures to promote fintech innovation, including an assessment of extending access to Federal Reserve payment rails. The Executive Order specifically instructed the Fed to evaluate the potential for uninsured depositories and non-bank fintechs to access?Fed payment accounts and?services.
European Union governments are discussing whether former European Central Bank President Mario Draghi, or former German Chancellor Angela Merkel, could represent the bloc in potential negotiations with Russian President Vladimir Putin, the Financial Times reported on Wednesday.
U.S. Treasury Secretary Scott Bessent's jab at Japan's dovish premier may help clear political hurdles for the Bank of Japan to raise interest rates in June, analysts say, though there is uncertainty on whether it can support the yen.
* Bessent says BOJ can do what's needed if granted independence. * Remarks reinforce Washington's preference for higher BOJ rates. * PM Takaichi, aides wary of further BOJ rate hikes. * Key would be whether Ueda can meet PM, analysts say. By Leika Kihara.
* Investor pricing in higher rates in the face of rising inflation. * No end in sight for the over two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee.
Gold prices edged higher on
Wednesday, as optimism over a potential peace agreement between
the United States and Iran tempered concerns around inflation
and interest rates staying higher for longer.
It remains too early to estimate how the use of AI technology will influence inflation, jobs and monetary policy, Philadelphia Federal Reserve Bank president Anna Paulson said on Tuesday, addressing an issue likely at the center of coming Fed deliberations.
U.S. President Donald Trump signed an executive order on Tuesday calling on regulators and the Federal Reserve to review rules that may be stifling financial innovation, including whether the central bank could expand fintech access to its payment rails, the systems that move money between banks.
The current level of interest rates is appropriate for the moment, putting downward pressure on inflation at a time when price pressures remain elevated, Philadelphia Federal Reserve Bank President Anna Paulson said on Tuesday, but she added it was "healthy" that investors had begun considering scenarios where rates might need to rise.
U.S. President Donald Trump signed an executive order on Tuesday calling on regulators and the Federal Reserve to review rules that may be stifling financial innovation, including whether the central bank could expand fintech access to its payment rails, the systems that move money between banks.
G7 finance ministers agreed on Tuesday on the need for action to tackle trade imbalances in a fragmented global economy, saying the current situation was unsustainable with U.S. Treasury Secretary Scott Bessent arguing for more protections against a flood of cheap Chinese imports.
The current level of interest rates is appropriate for the moment, putting downward pressure on inflation at a time when price pressures remain elevated, Philadelphia Federal Reserve Bank President Anna Paulson said on Tuesday, but she added it was "healthy" that investors had begun considering scenarios where rates might need to rise.
Donald Trump's executive order asks the Fed to review how depository institutions may be granted access to payment services, an area the crypto industry is deeply involved with.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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