2026-01-28 19:55
Jan 28 (Reuters) - The White House on Monday will meet with executives from the banking and cryptocurrency industries to discuss a path forward for landmark crypto legislation which has stalled due to a clash between the two powerful sectors, said three industry sources. The summit hosted by the White House's crypto council will include executives from several trade groups. It will focus on how the bill treats interest and other rewards crypto firms can dish out on customer holdings of dollar-pegged tokens known as stablecoins, the people said. Sign up here. The White House meeting could help the industries, which have been fighting head-to-head over the bill, reach a compromise, and underscores how keen President Donald Trump's administration is to get the legislation across the line. Trump courted crypto cash on the campaign trail, promising to promote the adoption of crypto assets. Reuters was first to report the meeting. The White House did not immediately respond to a request for comment. The sources declined to be identified discussing private policy discussions. Summer Mersinger, CEO of the Blockchain Association which represents crypto giants including Coinbase (COIN.O) , opens new tab, Ripple and Kraken, said in a statement the group is "proud to participate in next week's meeting." "We look forward to continuing to work with policymakers across the aisle so Congress can advance lasting market structure legislation and ensure the United States remains the crypto capital of the world," she said. Cody Carbone, CEO of The Digital Chamber, another major crypto trade group, credited the White House with "pulling all sides to the negotiating table." The Senate has for months been working on the bill, dubbed the Clarity Act, which aims to create federal rules for digital assets, the culmination of years of crypto industry lobbying. Crypto companies have long argued that existing rules are inadequate for digital assets, and that legislation is essential for companies to continue to operate with legal certainty in the U.S. The House of Representatives passed its version of the bill in July. The Senate Banking Committee was scheduled earlier this month to debate and vote on the bill, but the meeting was postponed at the last minute, in part due to concerns among lawmakers and both industries over the interest issue. There were also disagreements among Republicans about the bill's stablecoin provisions, according to two other people with knowledge of the discussions, and senators leading the effort bill were concerned that it would not get enough votes to advance. Crypto companies say providing rewards such as interest is crucial for recruiting new customers and that barring them from doing so would be anti-competitive. Banks say the increased competition could result in insured lenders experiencing an exodus of deposits -- the primary source of funding for most banks -- potentially threatening financial stability. A report from Standard Chartered on Tuesday estimated that stablecoins could pull around $500 billion in deposits out of U.S. banks by the end of 2028. The provision at issue stems from a law passed last year which created a federal regulatory framework for stablecoins, potentially paving the way for greater stablecoin adoption. That bill prohibited stablecoin issuers from paying interest on cryptocurrencies, but banks say it left open a loophole that would allow for third parties - such as crypto exchanges - to pay yield on tokens, creating new competition for deposits. https://www.reuters.com/sustainability/boards-policy-regulation/white-house-set-meet-with-banks-crypto-companies-legislation-clash-2026-01-28/
2026-01-28 19:15
NEW YORK, Jan 28 (Reuters) - The U.S. dollar held gains against the euro and the yen on Wednesday after the U.S. Federal Reserve kept interest rates steady, citing still-elevated inflation alongside solid economic growth, and gave little indication in its latest policy statement of when borrowing costs might fall again. The euro was 1% lower against the dollar at $1.19163, while the greenback was up 1.1% against the yen at 153.90 yen . Sign up here. https://www.reuters.com/business/dollar-holds-gains-against-euro-yen-after-fed-stands-pat-rates-2026-01-28/
2026-01-28 19:08
Jan 28 (Reuters) - French shipping group CMA CGM and U.S. investment firm Stonepeak have agreed to create a joint venture valued at nearly $10 billion to operate and invest in port terminals, including in the United States, the companies said on Wednesday. CMA CGM, the world's third-largest container shipping group, last year announced plans to invest $20 billion in the United States, winning plaudits from President Donald Trump who has made reviving the U.S. shipping sector a policy priority. Sign up here. Under the terminal joint venture, Stonepeak will invest $2.4 billion to acquire a 25% minority stake, while CMA CGM will fold in 10 terminals it already controls, including in New York and Los Angeles, the firms said in a statement. Stonepeak will potentially provide a further $3.6 billion in funding for future joint terminal projects. CMA CGM, meanwhile, will use the $2.4 billion in proceeds from the transaction to invest in growth of its core businesses, according to the statement. "The creation of United Ports LLC, our joint venture with Stonepeak, marks an important step in the development of our terminal activities in the United States and globally,” Rodolphe Saade, Chairman and CEO of CMA CGM, said in the statement. The joint venture, expected to close in the second half of this year, was reported earlier by the Wall Street Journal. The terminals covered by the deal also include facilities in Spain, Brazil, India, Taiwan and Vietnam. Like its shipping rivals, CMA CGM has invested heavily in port terminals to reinforce its access to key routes and to be less reliant on volatile earnings from ocean transport. The Marseille-based group, privately controlled by the Saade family, has expressed interest in acquiring some of CK Hutchison's (0001.HK) , opens new tab ports. The Hong Kong conglomerate has proposed to sell ports, against a backdrop of tensions between Washington and Beijing for control of trade routes, including the Panama Canal. New York-based Stonepeak has around $80 billion under management with a focus on infrastructure. https://www.reuters.com/legal/transactional/shipping-group-cma-cgm-form-port-joint-venture-with-stonepeak-2026-01-28/
2026-01-28 18:57
Dollar fell almost 10% last year, under pressure again Hedging activity by investors in focus LONDON, Jan 28 (Reuters) - Investors rushing to protect their U.S. assets against dollar depreciation could test banks' ability to meet demand for hedging, said a senior trader at UBS (UBSG.S) , opens new tab, one of the world's top currency dealers. The dollar, which slid almost 10% against other major currencies last year, is down a further 2% this month, in part as a result of U.S. policy uncertainty , which was already making some overseas investors seek more protection for their U.S. holdings. Sign up here. "If dollar hedging were to increase materially, and it’s a conversation we’re having more and more with clients, the issue is structural capacity," Ben Pearson, UBS' global head of G11 short-term interest rate trading, told reporters on Tuesday. The global foreign exchange market is one of the most liquid, with daily trading volume near $10 trillion, and according to Barclays estimates, investors currently hedge roughly 48% of their U.S. dollar assets. While hedging ratios are hard to ascertain as they vary between investors and are often private, Barclays estimates they fluctuated between about 46% at the start of last year and 50% in the aftermath of April's tariff shock. And a renewed sudden surge in hedging could strain the system, UBS' Pearson said. “A 5-percentage-point rise in hedge ratios for all foreign holders of U.S. assets would imply roughly $1.5 trillion of dollar selling," Pearson said. "The system can only absorb that if there is sufficient bank balance sheet available.” Banks that provide hedging services to asset managers and companies may have to free significant funds quickly by exiting other trades to meet client demands. Pearson said the industry was aware of the risks and looking to use other products and workarounds. But the question is whether “there is a scenario where constraints in capacity lead dealers to make difficult choices around which clients get access to their balance sheet, and which potentially do not,” he said. https://www.reuters.com/business/finance/big-hedging-dollars-clients-could-test-banks-capacity-senior-ubs-trader-says-2026-01-28/
2026-01-28 18:45
Bessent says he spoke with Trump after Iowa rally Four "great" candidates in the running, Treasury chief says Trump says decision coming soon WASHINGTON, Jan 28 (Reuters) - Treasury Secretary Scott Bessent on Wednesday said he had spoken at length with President Donald Trump about the nomination of a successor for Federal Reserve Chairman Jerome Powell, saying there were still four "great" candidates in the running. Bessent told CNBC he traveled to Iowa with Trump for a rally and then had a long discussion with him about the Fed chair nomination on the more than two-hour flight back to Washington. Sign up here. Asked if he'd made a recommendation, Bessent said, "I don't make recommendations. I give the president options and outcomes. It's going to be the president's decision." He gave no further details and said it was unclear when Trump would announce a decision, adding, "Only the president knows." The White House had no immediate comment on the timing of Trump's decision. Bessent, who spoke to CNBC before Wednesday's Fed meeting to set interest rates, said Trump had not narrowed or expanded the field of four candidates, without giving their names. Trump has repeatedly said he expects to announce his pick soon, and last week said he was "down to one in my mind," while saying he preferred to keep one of the top candidates - his top economic adviser Kevin Hassett - in his current post. BlackRock's chief bond investment manager, Rick Rieder, whose interview Trump described as "very impressive," is now the clear favorite to succeed Powell when his term ends in May, according to prediction market Kalshi. The other two candidates named by Trump and his top aides in recent weeks are Fed Governor Christopher Waller and former Fed Governor Kevin Warsh. Bessent said Trump was choosing among "four great candidates." He said Stephen Miran, who is on leave from his job as chairman of the White House Council of Economic Advisers to serve on the Fed's Board of Governors, could stay on in his role for now. His term had been due to end on January 31. Miran last month said he would likely remain on the Fed board until the Senate confirms whoever Trump nominates as the next Fed chair. Miran joined the Fed in September to serve the last few months of a 14-year term after the unexpected resignation of Fed Governor Adriana Kugler, who was nominated by former President Joe Biden. Bessent also urged the Federal Reserve to have an open mind about interest rates, adding that there were many board members who had "a false narrative" on inflation. "I hope that they will have an open mind and see what's coming over the next couple months," he said. He said strong U.S. economic growth and wage increases did not mean inflation would necessarily rise, given substantial decreases in rents. https://www.reuters.com/world/us/us-treasury-chief-says-spoke-length-with-trump-about-fed-chair-candidates-2026-01-28/
2026-01-28 18:38
NEW YORK, Jan 22 (Reuters) - Top U.S. oil refiners are expected to post stronger fourth-quarter profits as product margins spurred by the ongoing Russia-Ukraine war boosted earnings, energy analysts said. Fuel makers have reaped unexpected profits this year, after from record levels in 2022, a year when a recovery in demand after the pandemic and Russia's invasion of Ukraine drove up fuel prices. Sign up here. Diesel margins were driven largely by Ukrainian drone strikes on Russian refineries that impacted global supply, Tudor, Pickering, Holt & Co analyst Matthew Blair said in a note. Widening differentials for nearly every major crude grade against global benchmark Brent and falling crude prices also provided some respite for refiners, he said. Valero (VLO.N) , opens new tab, the second-largest U.S. refiner by capacity, is set to kick off refiner earnings on Thursday, with analysts forecasting a profit of $3.27 per share, up from $0.64 per share profit a year ago, according to LSEG data. Marathon Petroleum (MPC.N) , opens new tab, the top U.S. refiner by volume, is expected to report a per-share profit of $3.01, compared with a $0.77 per share profit a year ago, LSEG estimated. Phillips 66 (PSX.N) , opens new tab is expected to report a profit of $2.19 per share, versus a loss of $0.15 per share a year ago, according to LSEG estimates. VENEZUELAN CRUDE MAY BOOST GULF COAST REFINERS The U.S. military’s earlier this month is set to reroute the country’s oil exports back toward the U.S., which would benefit complex refineries along the Gulf Coast refining and exporting hub. The regime change in Venezuela, once a major oil producer, has prompted the market to believe crude differentials will widen out as more Venezuelan barrels make their way to the U.S., TD Cowen analyst Jason Gabelman said. Gulf Coast refiners including Valero, Marathon and Phillips 66 own and operate complex refineries that were built to process heavy-grade crude - the type that Venezuela exports. Investors will be seeking clarity from refining executives on Gulf Coast refineries' capacity to take Venezuelan crude, how fast they can take it, and how the increasing supply of the barrels will improve pricing, said Simon Wong, portfolio manager at Gabelli Funds. "Venezuelan production remains structurally challenged and, in terms of ramping up its production, is really not solvable within a short timeframe," said Ben Hoff, head of commodity research at Societe Generale. "I think this is something we're going to ultimately see the economics play out." https://www.reuters.com/business/energy/us-refiners-poised-higher-q4-profit-venezuela-focus-2026-01-28/
