2025-05-23 01:57

May 22 (Reuters) - Some of the biggest U.S. banks are exploring whether to team up to issue a joint stablecoin, The Wall Street Journal reported on Thursday. The conversations have so far involved companies co-owned by JPMorgan Chase (JPM.N) , opens new tab, Bank of America (BAC.N) , opens new tab, Citigroup (C.N) , opens new tab, Wells Fargo (WFC.N) , opens new tab and other large commercial banks, the report said, citing people familiar with the matter. Sign up here. However, the newspaper said that the bank consortium discussions are in early, conceptual stages and could change. Reuters could not immediately confirm the report. The banks did not respond to Reuters' requests for comment late on Thursday. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually pegged to a fiat currency such as U.S. dollar, are commonly used by crypto traders to move funds between tokens. One bank consortium possibility that has been discussed would be a model that lets other banks use the stablecoin, in addition to the co-owners of the Clearing House and Early Warning Services, the Journal said, citing unnamed sources. Some regional and community banks have also considered whether to pursue a separate stablecoin consortium, it added. Trump has promised to be the "crypto president," popularizing its mainstream use in the U.S. He has said he backs crypto because it can improve the banking system and increase the dominance of the dollar. https://www.reuters.com/business/finance/some-us-banks-explore-venturing-into-crypto-with-joint-stablecoin-wsj-reports-2025-05-23/

2025-05-23 01:00

April core CPI rises 3.5% yr/yr vs f'cast +3.4% Index excluding fresh food, fuel up 3.0% yr/yr in April Services inflation moderate, US tariffs cloud wage outlook Analysts expect inflation to slow back near BOJ target year-end TOKYO, May 23 (Reuters) - Japan's core inflation accelerated at its fastest annual pace in more than two years in April on steady rises in food costs, data showed on Friday, raising the odds of another interest rate hike by year-end. The data underscores the Bank of Japan's predicament of balancing price pressures from persistent food inflation against growth headwinds from U.S. President Donald Trump's tariffs. Sign up here. The core consumer price index (CPI), which excludes fresh food but includes oil prices, rose 3.5% in April from a year earlier, exceeding market forecasts for a 3.4% gain and accelerating from a 3.2% increase in March. It was also the fastest annual pace of growth for the index since the 4.2% rise in January 2023, holding above the central bank's 2% target for more than three years. "Underlying inflation remained strong in April despite the slashing of public high school fees," said Marcel Thieliant, head of Asia-Pacific at Capital Economics. "Our own view is that the persistent strength in inflation will convince the (BOJ) to hike interest rates yet again in October," he said. A Reuters poll, taken on May 7-13, showed most economists expect the BOJ to hold rates steady through September with a small majority forecasting a hike by year-end. The latest uptick in inflation was driven mostly by a food price surge of 7.0% in a sign many companies hiked prices at the April start of Japan's new fiscal year. The price of rice spiked 98.6% last month from a year earlier, while that of chocolate jumped 31%. Another index stripping away both fuel and fresh food, which is scrutinised by the BOJ as a better gauge of demand-driven price pressure, rose 3.0% in April from a year earlier, the data showed. It accelerated from a 2.9% gain in March. The BOJ ended a decade-long, massive stimulus programme last year and in January raised short-term interest rates to 0.5% on the view Japan was on the cusp of durably meeting its 2% inflation target. While the central bank has signalled readiness to raise rates further, the economic repercussions from Trump's tariffs forced it to cut its growth forecasts and complicated decisions around the timing of the next rate increase. Governor Kazuo Ueda has said the timing for underlying inflation to converge towards the BOJ's target has been pushed back somewhat due to "extremely high" economic uncertainty. WAGE RISKS While the data highlighted sticky price pressure, some analysts expect inflation to slow back near the BOJ's target by year-end as the yen's rally push down import costs. The hit to growth from U.S. tariffs may also intensify later this year and discourage firms from hiking pay, casting doubt on whether Japan can achieve a wage-driven rise in prices - a key prerequisite for further rate hikes, analysts say. Service-sector inflation moderated to 1.3% in April from 1.4% in March, a sign companies were slow in passing on rising labour costs, the CPI data showed. Consumption remains stagnant as wage growth fails to catch up with inflation, a key factor that drove Japan's economy into contraction in the first quarter. "Shunto wage negotiations delivered a solid pickup in 2025, but with inflation cooling more slowly than hoped, those gains won't go as far as they could," said Stefan Angrick, an analyst at Moody's Analytics, adding that U.S. tariffs will hurt growth. "The Bank of Japan isn't done hiking, but it's not moving just yet. Tariff haze will keep the central bank on hold for the time being. We expect another rate hike in early 2026," he said. https://www.reuters.com/markets/europe/japans-core-inflation-hits-more-than-2-year-high-keeps-boj-under-pressure-2025-05-22/

2025-05-23 00:53

Man's body found in car trapped in floodwaters Around 50,000 people still isolated Rain, wind impacted trains, flights in Sydney SYDNEY, May 23 (Reuters) - The body of a man was found in a car trapped in floodwaters in Australia's southeast on Friday, raising the death toll to four, after three days of incessant rain cut off entire towns, swept away livestock and destroyed homes. Police said the man was found near Coffs Harbour, around 550 km (342 miles) north of Sydney. The search continued for a person missing since the deluge began early this week. Sign up here. Around 50,000 people are still isolated, emergency services personnel said, while residents returning to their flooded homes were warned to watch out for dangers. "Floodwaters have contaminants, there can be vermin, snakes ... so you need to assess those risks. Electricity can also pose a danger as well," state Emergency Services Deputy Commissioner Damien Johnston said during a media briefing. Television videos showed submerged intersections and street signs, cars up to their windshields in water, after fast-rising waters burst river banks in the Hunter and Mid North Coast regions of New South Wales, Australia's most populous state. Debris from the floods, and dead and lost livestock, have washed up on the coast. Prime Minister Anthony Albanese said he had to cancel his planned visit to Taree, one of the worst-hit towns, due to floodwaters. "We did try ... but that was not possible due to the circumstance, which I'm sure people understand," Albanese told reporters from the town of Maitland in the Hunter region. "But our thoughts are with communities that are cut off at this point in time. And we're here to basically say, very clearly, and explicitly you're not alone." Australia has been enduring more extreme weather events that some experts say are happening because of climate change. After droughts and devastating bushfires at the end of last decade, frequent floods have wreaked havoc since early 2021. "What once were rare downpours are now becoming the new normal - climate change is rewriting Australia's weather patterns, one flood at a time," Davide Faranda, weather researcher at ClimaMeter, said in a statement. DISRUPTIONS IN SYDNEY A wild weather system that dumped around four months of rain over three days shifted south towards Sydney on Thursday bringing heavy rain overnight, though the weather bureau, in its latest update, said it is expected to ease by Friday evening. Water on rail tracks impacted some suburban train lines in Sydney, including its airport line services, while Sydney Airport was forced to shut down two of its three runways for one hour on Friday morning due to strong winds, delaying flights. Warragamba Dam, which supplies 80% of Sydney's water supply and is currently at around 96% of capacity, could spill over, officials said. https://www.reuters.com/business/environment/death-toll-australia-floods-rises-four-tens-thousands-stranded-2025-05-23/

2025-05-23 00:53

Higher tariffs could hit oil demand growth, analysts say Brent and WTI down more than 2% this week Market braces for another OPEC+ output increase in July HOUSTON, May 23 (Reuters) - Oil prices gained on Friday as U.S. buyers covered positions ahead of the three-day Memorial Day weekend amid worries over the latest round of nuclear talks between American and Iranian negotiators. Brent crude futures settled at $64.78 a barrel, up 34 cents, or 0.54%. U.S. West Texas Intermediate crude futures finished at $61.53, up 33 cents, or 0.54%. Sign up here. "I think there is some short-covering going into this weekend," said Phil Flynn, senior analyst with Price Futures Group. The Memorial Day weekend kicks off the U.S. summer driving season, the period of highest demand for motor fuels. U.S. and Iranian negotiators met in Rome on Friday in another round of talks aimed at curtailing the Islamic Republic's nuclear program. Traders are afraid crude supplies could be interrupted if talks fail to reach a deal, Flynn said. "The talks are not looking good," he said. "If these are the last talks and there's no deal, it could give a green light to the Israelis to attack Iran." President Donald Trump said on Friday that he is recommending a straight 50% tariff on goods from the EU starting on June 1, saying the bloc has been hard to deal with on trade. "The oil market has been under pressure from two things," said Andrew Lipow, president of Lipow Oil Associates. "We await the impact of tariffs on oil demand and OPEC+ is expected to increase supply again this summer." OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies led by Russia is holding meetings next week expected to yield another output increase of 411,000 barrels per day (bpd) for July. Reuters reported this month that the group could unwind the rest of its 2.2 million bpd voluntary production cut by the end of October, having already raised output targets by about 1 million bpd for April, May and June. https://www.reuters.com/business/energy/oil-falls-stronger-us-dollar-possibility-higher-opec-output-2025-05-23/

2025-05-23 00:34

TOKYO, May 23 (Reuters) - Japan's new Agriculture Minister Shinjiro Koizumi said on Friday he aimed to get rice on store shelves for under 3,000 yen ($20.86) for a 5-kg bag, Jiji reported. ($1 = 143.8000 yen) Sign up here. https://www.reuters.com/world/japan-minister-wants-rice-shelves-under-3000-yen-jiji-reports-2025-05-23/

2025-05-22 23:22

May 22 (Reuters) - Mexican state oil company Pemex plans to layoff over 3000 tenured employees and save up around 10.5 billion pesos ($543.40 million) in the process, Bloomberg reported citing a company document dated April. The document was first reported by the Mexican newspaper Reforma. Reuters couldn't immediately verify the details of the reports. Sign up here. ($1 = 19.3228 Mexican pesos) https://www.reuters.com/business/energy/pemex-cut-over-3000-jobs-save-more-than-540-million-bloomberg-reports-2025-05-22/