Latest news with #SocieteGenerale
Bloomberg
11 hours ago
- Business
- Bloomberg
Societe Generale's Benzimra on Outlook for Asian Stocks
Societe Generale's Frank Benzimra shares his views on the South Korean, Chinese and Southeast Asian stock markets. He says the firm is looking at the China consumption story, and adds that it's neutral on India and underweight Indonesia, Malaysia and Thailand. Benzimra speaks on Bloomberg Television. (Source: Bloomberg)
Bloomberg
21 hours ago
- Business
- Bloomberg
Societe Generale Asks Staff to Return to Office Four Days a Week
Save Societe Generale SA asked its employees who are on hybrid work schedules to return to the office four days a week, according to an internal memo seen by Bloomberg News. 'I would like to inform you of the executive committee's decision to harmonize rapidly our working from home policy within the group, on the basis of a maximum of one day per week,' Societe Generale Chief Executive Officer Slawomir Krupa wrote in the memo sent Thursday.
New Straits Times
a day ago
- Business
- New Straits Times
Norway's central bank delivers surprise rate cut
LONDON: Norway's central bank cut its policy interest rate by 25 basis points to 4.25 per cent on Thursday, marking its first reduction in borrowing costs in five years, in a decision that took most analysts by surprise. Norway's crown and government bond yields tumbled in reaction. The US dollar was up over 1 per cent against the Norwegian currency, fetching 10.05 crowns, on track for its biggest daily rise in eight weeks. The euro was up 0.80 per cent, trading at 11.54 crowns. Norwegian government bond yields fell as much as 10 basis points after the decision to 3.95 per cent, their lowest since May 12. Featured Videos Kit Juckes, Head of FX Strategy, Societe Generale, London"My first piece of frustration is that between their sovereign wealth fund and their monetary policy, they manage to not have a super-strong currency. That is really what they've managed to do. It's never quite as strong as you think it ought to be, but it's never quite cheap enough either. "There are a lot of countries that live with highly valued currencies and plenty that don't benefit from lowly valued currencies in the big scheme of things. What policymakers loathe is currencies that move quickly and mess up their inflation target. "In this trade war period, they are a runaway top currency. "We're going to write this one down as being one of those unsurprising, surprises that really annoy us." Oeystein Doerum, Chief Economist, Norway's Confederation of Norwegian Enterprises, Oslo"Not only did the cut come earlier than expected, the interest rate path has also been lowered in the short term, and prices are now almost in for another rate cut, to 4.00 per cent, at the September meeting, and a high probability of another cut, to 3.75 per cent, at the December meeting. After that, the interest rate will fall to 3.00 per cent by the end of 2028, which is actually slightly higher than indicated in the March report. "In any case, this is good news for all indebted households who can take a vacation with a slightly lighter burden on their backs, and it will provide some support to the housing market and thus to a construction industry that has been struggling for a long time. "The main justification is that inflation has fallen somewhat faster than Norges Bank envisaged in March. The 2 per cent target is in sight. But the central bank remains vigilant: if wage and price growth remain higher than projected, there will be fewer interest rate cuts. In that case, just note the bank's wage projections for the years 2026–28 – 4.1 per cent, 3.6 per cent, and 3.3 per cent, respectively. "It is also pleasing that the interest rate path is being adjusted downward despite the fact that mainland growth for this year is being increased, by four-tenths, to a still modest 1.6 per cent, close to our estimate. And that unemployment is expected to remain at relatively low levels. "If this is the outcome, Norges Bank will have helped steer the Norwegian economy towards a soft landing, after the largest external cost shock in almost fifty years." Lee Hardman, Senior Currency Analyst, MUFG, London"The timing is surprising, we thought that they would wait a little longer. They hadn't been giving a strong signal that they would cut rates as soon as today, that's why the market has reacted as it has. "Their justification is that underlying inflation is softer than expected, creating more room for them to cut rates. "The other part of the messaging is that the overall profile for rate cuts going forward hasn't changed a great deal – just the timing – so from that perspective, that could dampen the sell-off in the (Norwegian crown) once the dust settles and market participants get over the initial shock." Jan von Gerich, Chief Market Strategist, Nordea, Helsinki"This was not something that was expected by analysts, but given an uncertain outlook, you shouldn't exclude any outcomes. "Given that this was a surprise, the move could have been bigger in the crown. "They are (Norges Bank) talking about normalisation, so today's move suggests that this process is happening faster than expected. "The Fed now seems to be the odd one out among global central banks." Michael Brown, Senior Research Strategist, Pepperstone, London"It was clearly a surprise – the Norges Bank was the last holdout when it comes to hawkishness among G10 central banks. "They hadn't actually pencilled a rate cut until the autumn, so I think it may just be a sign that they're shifting to a more proactive approach. "And given all the uncertainty that we see, they're probably in quite a luxurious position where they feel if they deliver a cut now, they can perhaps head off some potential weakness that may be coming down the track in the next couple of quarters.
Yahoo
2 days ago
- Business
- Yahoo
US Bonds Rally Stalls as Powell Endorses a Patient Fed Approach
(Bloomberg) -- The Treasury market stalled after Federal Reserve officials indicated they're still on course to deliver two interest-rate reductions this year, despite the risk of resurgent inflation. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads How E-Scooters Conquered (Most of) Europe Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown US government debt is finishing Wednesday with mild gains after policymakers left their benchmark rates steady and kept intact projections for two cuts by the end of the year. A stronger rise in Treasuries after the decision faded as Chair Jerome Powell emphasized that it would take time to fully gauge the impact of tariffs on the economy. To Subadra Rajappa, head of US rates strategy at Societe Generale, the knee-jerk reaction in the $29 trillion market — and subsequent ebb — shows that the Fed ultimately 'remains in 'wait-and-see' mode.' Traders are pricing in about 47 basis points of easing, which implies expectations for nearly two reductions in the remainder of 2025. The first is fully priced in for October, though some see a move as soon as September. The Fed has held rates steady since December at 4.25%-4.5%. Yields on two-year notes, most sensitive to the Fed's monetary policy, were ending lower by a basis point at 3.94% after earlier climbing as high as 3.96%. Most others were little changed on the day. Powell told reporters after the rate decision that overall uncertainty has diminished, but it hasn't gone away. Questions have been swirling around the outlook for the world's top economy given President Donald Trump's evolving trade policies and current budget negotiations in Congress. So far, most major indicators show a generally healthy, if slowly cooling, US economy. The Fed chief said he expects to learn more about the impact of tariffs on inflation in the months ahead. 'We haven't been through a situation like this,' Powell said, 'and I think we have to be humble about our ability to forecast it.' The comments contributed to the stall-out in Treasuries, drawing investor focus away from officials' projections for the path of interest-rate cuts ahead. While officials' median projection for two rate cuts in 2025 remained the same as those released at the March gathering, a few lowered their expectations. Seven now foresee no rate cuts this year, compared with four in March. Two others pointed to one cut this year. The market, however, quickly realized that the Fed remains focused on the data, Michael de Pass, global head of rates trading at Citadel Securities, said. 'When there's a fair amount of uncertainty around the rate path, the dots tend to complicate the messaging. That's definitively the zone that we're in now,' he said. What Bloomberg strategists say: The Fed's decision to hold the course, despite weaker growth, underscores its priority to preserve inflation-fighting credibility. As growth cools and labor market risks mount, markets may view the Fed's restraint as misplaced, with traders pushing for a stronger focus on employment amid rising fears that policy missteps could spark renewed market turbulence. — Michael Ball, Markets Live Macro Strategist, New York The concern about resurgent inflation was reflected in policymakers' expectations for the years ahead. Officials now see just one cut each in 2026 and 2027. 'It seems a compromise to leave two cuts in for this year and kick the can down the road,' said George Catrambone, head of fixed income at DWS Americas. 'That said, whereas the dots have been downplayed in recent weeks, I think it's noteworthy the dots have drifted higher in '26 and '27.' --With assistance from Kristine Aquino, Edward Bolingbroke and Carter Johnson. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? American Mid: Hampton Inn's Good-Enough Formula for World Domination ©2025 Bloomberg L.P. 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
Yahoo
3 days ago
- Business
- Yahoo
Factbox-Stablecoins gain ground with corporates as US legislation takes shape
By Manya Saini (Reuters) -As the U.S. stablecoin bill, known as the GENIUS Act, advances in the Senate, a once-niche corner of the crypto industry is gaining rapid traction among global corporates. Stablecoins, a type of cryptocurrency designed to maintain a constant value – typically pegged 1:1 to the U.S. dollar – are widely used by crypto traders to move funds between tokens. Analysts say the bill, if passed, could be a key catalyst for more companies across sectors to adopt stablecoins, as it would provide much-needed regulatory and legislative clarity. Here is an overview of major companies globally that have launched, or are considering launching, their own stablecoins: MAJOR U.S. BANKS: Big U.S. banks are holding internal discussions about expanding into cryptocurrencies as they get stronger endorsements from regulators, but initial steps will be tentative, centering on pilot programs, partnerships or limited crypto trading, Reuters reported in May. Bank of America could launch stablecoins, its CEO Brian Moynihan said earlier this year, while Morgan Stanley wants to work with regulators to see how it can be a middleman for crypto-related transactions, CEO Ted Pick said earlier this year. BofA declined to comment, while Morgan Stanley did not immediately respond to Reuters requests for comment. SOCIETE GENERALE: The French bank said in June it plans to launch a publicly tradable, dollar-backed stablecoin through its digital asset subsidiary. WALMART AND AMAZON: The U.S. retail giants have recently explored issuing their own stablecoins, the Wall Street Journal reported earlier this month, citing people familiar with the matter. The companies did not immediately respond to a Reuters request for comment. BANCO SANTANDER SA: The Spanish bank is mulling an expansion in digital assets, including early-stage plans to offer a stablecoin, Bloomberg News reported in May, citing people with knowledge of the matter. The bank did not immediately respond to a Reuters request for comment on the matter. WORLD LIBERTY FINANCIAL: U.S. President Donald Trump's World Liberty Financial crypto venture launched a dollar-pegged stablecoin this year, called USD1. The token has a market value of roughly $2.2 billion, according to CoinGecko. PAYPAL: The payments giant launched a U.S. dollar stablecoin in August 2023, becoming the first major financial technology firm at the time to embrace digital currencies for payments and transfers. CIRCLE INTERNET: The newly public company launched its flagship USDC stablecoin in 2018. It is now one of the largest stablecoins by market value, with a market cap of $61.5 billion, according to CoinGecko. PAXOS: The crypto-native company issues the Global Dollar stablecoin (USDG) and the Pax Dollar (USDP), both pegged 1:1 to the U.S. dollar. TETHER: The crypto company issues an eponymous stablecoin, which is the world's largest by market value, according to CoinMarketCap. The USDT token, with a market cap of over $155 billion, is pegged to the U.S. dollar.
