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Business Times
19 hours ago
- Business
- Business Times
Are we heading for a multi-currency world?
IF EVER there were a country that needed to borrow at preferential interest rates, it is the US with its mounting debts, ageing demographics and evaporating fiscal discipline. If ever there were a country deliberately undermining the reserve currency status that keeps its borrowing costs low, it is the US with its selfish trade agenda, overreaching sanctions and poisonous politics. With China unwilling to take the steps required for the renminbi to replace the US dollar and Europe unable to do what needs to be done on behalf of the euro, the global financial system looks set for a slow unravelling. This will take a long time, but the current trajectory looks headed to a multi-currency world without a global lender of last resort and few certain places to hide in a crisis. A long and slow unravelling For all the debate on the US dollar's decline, of course, it still accounts for 57 per cent of the global reserves, 54 per cent of export invoicing and 88 per cent of foreign exchange transactions. As long as commodity derivatives are mainly priced in US dollars and Hollywood crooks still measure their loot in America's currency, there is a long way to go before the dollar's dominance fades. But investors should start to imagine a world in which the US dollar, renminbi and euro coexist with more equal reach. I have made my own contributions to a vast literature of angst and woe around America's self-destructive behaviour and the risks ahead. But a shrewd analysis by my former Treasury colleagues Charles Collyns and Michael Klein confirms the angst in numbers. They examine 10 events since the late 1990s, when a spike in policy uncertainty led to a flight to safety that strengthened the US dollar against other currencies. They find, however, that in two recent such moments, both coinciding with the start of President Donald Trump's two terms, the opposite is true. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up You may scoff that it is only two data points, but it is enough to wonder if that blood-curdling sell-off in stocks, bonds and the US dollar that followed 'Liberation Day' was an aberration. Trump wrote it off as market 'yips'. Collyns and Klein suggest that the 'dollar smile', a market phenomenon in which the US dollar strengthens in both good times and bad, may be turning into a frown. Stay tuned. Searching for alternatives Meanwhile, consider two other currencies that have actual plans in place to extend their reach for both economic and geopolitical purposes. China has been deliberately boosting the internationalisation of its currency. The Belt and Road Initiative builds infrastructure with loans denominated in renminbi, while a network of currency swap lines helps prime the pump for Chinese currency flows globally. The digital renminbi is at the forefront of modernising payment systems that will surely fuel adoption overseas. But even as the largest trading partner for 120 countries, China cannot expect broad use of its currency as long as it is not freely convertible. And even if President Xi Jinping or his successors take this bold step someday, the absence of independent regulators in a single-party system means that anyone holding renminbi will wonder when the rules might change again. If China may be unwilling to take the required steps to make its currency convertible, Europe looks unable. Last month, European Central Bank president Christine Lagarde outlined the concrete steps ahead for the euro to become a more reliable global currency that would reduce Europe's borrowing rates, insulate European businesses from exchange rate volatility, and reduce the continent's geopolitical dependence on an increasingly unpredictable America. The problem is that many of her steps depend on some magical thinking about domestic politics in places like France, Germany and Italy. 'A steadfast commitment to open trade' and 'deeper and more liquid capital markets' look well within reach. But 'underpinning (trade) with security capabilities' and 'uniting politically so that we can resist external pressures' sound far-fetched at best. All this means we may be headed for a much more confusing monetary world. Helene Rey of the London Business School makes her own case for the euro, but also reminds us of the theory of hegemonic stability advanced in Charles Kindleberger's study of the Great Depression. An open and stable international system, in this view, depends on a single great power. Imagine a crisis in which no single central bank can restore liquidity and confidence to markets. Worse, imagine if two or three central banks try to secure leverage by making their liquidity conditional. Or perhaps they just miscalculate and miscommunicate, leaving investors scurrying for hiding places in cryptocurrency and precious metals. We may still be a long way from such a world, but the closer we approach, the rougher the ride will be. OMFIF The writer is managing partner of Arbroath Group and writes the Leading Thoughts column on Substack. This article was first published by the Official Monetary and Financial Institutions Forum
Yahoo
11-06-2025
- Automotive
- Yahoo
Plus Automation to go public via SPAC deal
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Plus Automation plans to go public by merging with special purpose acquisition company Churchill Capital Corp IX at a $1.2 billion pre-money valuation, according to a June 5 press release. Plus anticipates up to $300 million from the transaction, which would fully fund the virtual driver software firm through the commercial launch of factory-built autonomous trucks in 2027. The deal is expected to close in Q4 this year. Following the merger, the combined company will operate as PlusAI. When it comes to startups, Plus holds a unique position — not having any debt, according to the company. Founded in 2016, the company developed an AI-based self-driving system called SuperDrive. It has since established partnerships with OEMs — including Traton Group, Hyundai and IVECO — who will ultimately build the autonomous trucks powered by its virtual driver software, the release states. Once the self-driving trucks are on the road, Plus will operate under a 'driver-as-a-service' model, creating recurring, per-mile revenue for the business. 'Our long-term vision is to empower fleet operators to run global freight networks with autonomous vehicles that improve safety, enhance efficiency, and reduce costs,' David Liu, co-founder and CEO of Plus said in the release. 'We believe the industry is at a critical inflection point, driven by breakthroughs in AI, supportive regulatory momentum, and ecosystem readiness.' Plus is the second autonomous software firm to announce a SPAC deal in recent months. In April, Kodiak Robotics announced its plans to merge with Ares Acquisition Corp. II, anticipating a $551 million cash infusion from the transaction. However, Plus claims to have driven more miles than its self-driving software competitors. Per the release, Plus' autonomous technology has been used for more than 5 million miles of driving, compared to the estimated 2.6 million driven by Kodiak as of Feb. 28. 'After evaluating many opportunities, we knew Plus was the right partner,' said Michael Klein, chairman and CEO of Churchill Capital Corp IX, in the release. 'Broad adoption depends on confidence in vehicle performance and safety and Plus stands out with its advanced virtual driver platform and a customer-centric commercialization model led by OEM partners' Plus is currently conducting public road testing in Texas and Sweden and expects additional customer fleet trials in fall 2025. The company also has operations in its home state of California, as well as Texas and Germany, to support commercialization and development. Recommended Reading Kodiak looks to go public via SPAC deal Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
11-06-2025
- Business
- Time of India
Oklo wins big with Aurora reactor as U.S. Air Force taps nuclear power for Alaska base
Oklo Inc. just hit the nuclear jackpot. The U.S. Defence Logistics Agency Energy has issued a Notice of Intent to award the startup a deal to deploy its advanced Aurora powerhouse at Alaska's Eielson Air Force Base. Translation: the military just picked Oklo to fuel its Arctic ops with next-gen fission energy. $OKLO ... Oklo Inc. (NYSE: OKLO), an advanced nuclear technology company, has been issued a Notice of Intent to Award (NOITA) by the Defense Logistics Agency Energy (DLA Energy), on behalf of the Department of the Air Force (DAF) and the U.S. Department of Defense, to provide… Oklo's nuclear dream gets a military green light With a $7.3 billion market cap and a stock that has exploded over 450% in the last year, Oklo is not just riding the nuclear wave—it is leading it. The Aurora reactor, a sleek, sci-fi-ready microreactor, promises to deliver continuous energy, off-grid capabilities, and that hot fusion of electricity and heat needed in the frosty wilds of Alaska. This deal is part of the Department of the Air Force's microreactor pilot program aimed at powering up critical defence infrastructure. Oklo is not just building the plant—they will design it, own it, operate it, and supply power under a long-term contract. It is like signing a lifetime Netflix subscription, except it is nuclear. Is that loco enough for you?$OKLO 🚀 +26% Oklo's CEO Jacob DeWitte made it clear this partnership reflects confidence in their ability to deliver clean and secure energy for mission-critical installations. Translation? The government trusts them to not mess this up. Stock soars, but analysts urge caution While Oklo's stock has shown crazy momentum—up 173% in just six months—InvestingPro has gently tapped the brakes. According to their data, Oklo's shares may be trading above fair value. But hey, when your company is literally changing the nuclear game, investors tend to get giddy. Oklo is also turning heads at the U.S. Nuclear Regulatory Commission, where their Licensed Operator Topical Report is now under review. This move could fast-track the licensing process and give Aurora reactors a serious advantage in upcoming projects. $OKLO has been picked by the U.S. Department of Defense to deliver clean power to Eielson AFB in Alaska through its Aurora microreactor under a long-term PPA. The project supports the Air Force's energy resilience push.$SMR $BWXT $RTX $LMT $GE They are also aligning with Washington's pro-nuclear vibes. Oklo supports the White House's executive orders to accelerate deployment of advanced nuclear tech, perfectly syncing with its vision to push America's energy independence agenda. Boardroom buzz and wall street love At its recent stockholder meeting, Oklo re-elected Michael Klein and Lt. Gen. (ret.) John Jansen to the board and locked in Deloitte & Touche LLP as its independent auditor. Wall Street is loving the momentum, William Blair just slapped an 'Outperform' rating on the company, while Craig Hallum sees major upside in Oklo's reactor revolution.
Yahoo
06-06-2025
- Automotive
- Yahoo
PlusAI seals $1.2bn autonomous truck deal
Plus Automation, an AI-based virtual driver software for autonomous trucks and Churchill Capital Corp IX has announced a definitive business combination agreement, paving the way for the company to go public. The transaction values Plus at a pre-money equity value of $1.2bn and is expected to provide $300m in gross proceeds. Upon completion, the combined entity will be known as PlusAI. Churchill IX chairman and CEO Michael Klein said, 'Physical AI will be transformative across industries, and Churchill IX is excited to give public investors access to a leading company in the sector primed for AI-driven innovation. After evaluating many opportunities, we knew Plus was the right partner. 'Trucking is the backbone of the global economy but the industry faces a persistent driver shortage that autonomous trucking has the potential to solve. Broad adoption depends on confidence in vehicle performance and safety and Plus stands out with its advanced virtual driver platform and a customer-centric commercialization model led by OEM partners." The commercial rollout of SuperDrive trucks is anticipated by 2027. Klein added: "With a software-focused, capital-efficient model, Plus is well positioned to scale and we're excited to partner with their talented team to support the company's next phase of growth.' Founded in 2016 by Stanford University classmates David Liu and Shawn Kerrigan, Plus is headquartered in Santa Clara, California, US. The company specialises in developing AI-based virtual driver software for factory-built autonomous trucks. Plus has made strides in deploying its autonomous driving technology across the US, Europe, and Asia, logging over five million miles of driving. It supplies this software to Traton Group, Hyundai, and Iveco for heavy trucks. Its system, SuperDrive, has recently passed a crucial safety test and is undergoing trials in Texas and Sweden, with more planned for fall. SuperDrive will first cater to US manufacturers before moving to Europe, and Plus plans to offer it through a driver-as-a-service model for a steady revenue stream. "PlusAI seals $1.2bn autonomous truck deal" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fox News
02-06-2025
- Business
- Fox News
Toxic heavy metals detected in popular rice brands across America, study shows
Heavy toxic metals could be in the rice you're about to buy at the grocery store. Healthy Babies, Bright Futures, a nonprofit organization based in Washington, D.C., that seeks to reduce babies' exposure to toxic chemicals, revealed that arsenic was found in 100% of the 145 rice samples purchased from stores throughout the United States. "We found four toxic heavy metals in rice – arsenic, cadmium, lead and mercury," according to the new report. "While each contaminant has different health effects, they can contribute to serious risks like cancer, developmental harm including IQ loss and accumulation in the body over time," the report said. The study included 10 forms of grain and more than 100 brands from stores in 20 different U.S. metropolitan areas, from Seattle to Los Angeles and New York to Miami. "Arsenic was found at the highest levels, with cadmium next," the report stated. One in four rice samples exceeded the federal limit set for arsenic in infant rice cereal, according to the study. "No such limit exists for rice itself – the bags and boxes of rice served at family meals – despite it being widely consumed by infants and toddlers," the report said. "Additionally, cadmium was found in all but one sample, with some showing elevated levels." Long-term exposure to arsenic from food and water can cause cancer and skin lesions, according to the World Health Organization. Michael Klein, a spokesperson for the USA Rice Federation, based in Arlington, Virginia, told Fox News Digital that American-grown rice "contains the lowest levels of inorganic arsenic in the world." "America's rice farmers and rice companies are fully committed to providing wholesome, high-quality and nutritious food." "America's rice farmers and rice companies are fully committed to providing wholesome, high-quality and nutritious food," Klein said. "We know that arsenic in food is alarming for many consumers and that you may have questions," he said. "And while we do not agree that there is a public health safety issue as a result of trace amounts of arsenic in rice, we will continue to work with the U.S. Food and Drug Administration (FDA) to ensure the U.S. rice supply meets any threshold established." Brown rice grown in the southeast or labeled "grown in the USA" had the highest average levels of heavy metals, data from the study showed. White rice grown in the southeast showed consistently higher levels of heavy metals, primarily arsenic, than rice grown in California, the data revealed. Thai jasmine rice and Indian basmati rice, as well as rice grown in California, generally contained lower heavy metal levels than other varieties tested. However, basmati rice from India and arborio rice from Italy had the highest average cadmium levels, per the study. Lead and mercury were found at the lowest levels, the study showed. "The U.S. rice industry does not dispute that there is arsenic in rice," Klein said. "Arsenic is found in virtually everything that grows in the ground." However, Klein called the data misleading — adding that every example highlighted in the new report is below the recommended guidance of the FDA. Information provided by the FDA on its website specifies the permitted levels of heavy metals found in food. As part of its "closer to zero" guidance, the FDA has a higher standard for processed foods intended for babies and young children. "We hope families come away with simple, practical steps they can take right now to reduce exposure – like cooking rice in extra water and draining it, swapping in other grains like quinoa or barley and choosing lower-arsenic rice types such as California-grown, Thai jasmine or Indian basmati," Healthy Babies, Bright Futures research director Jane Houlihan told Fox News Digital. "We're also urging the FDA to set enforceable limits on arsenic in all rice, not just baby cereal, to better protect children and families across the country."
