2025-11-14 11:39

ECB is drafting proposals to streamline regulations Banks say they are at a disadvantage versus US peers Elderson suggests including more banks in regime for smallest lenders FRANKFURT, Nov 14 (Reuters) - European Central Bank supervisor Frank Elderson on Friday backed simplifying rules for smaller lenders and capital requirements for the sector as a whole. The ECB is drafting proposals to whittle down regulation in the European Union, responding to banks' complaints that they are at a disadvantage to their U.S. peers, also due to U.S. President Donald Trump'sderegulation drive. Sign up here. Elderson proposed expanding a regime currently reserved for the region's tiniest and simplest institutions, which requires them to report just 30% of the data that larger banks must produce. Those lenders are also subject to fewer inspections from supervisors. "One could consider a more systematic application of this regime, as well as an increased scope," the Dutch legal expert told an ECB conference. He added this could be done within the existing rulebook, maintaining a framework in which assets are weighed based on their risk. Speaking later at the same event, chief ECB supervisor Claudia Buch said international banking rules should be applied to all banks "but with a lot of proportionality". The ECB will publish its proposals next month. ECB COULD MAKE ITS REQUIREMENTS MORE PREDICTABLE The Small and Non-Complex Institution regime is currently applied to banks with assets of less than 5 billion euros ($5.83 billion), a small trading book and little exposure to derivatives, among other criteria. Germany, where regional and smaller lenders still make up nearly half of total assets, has been lobbying to create an entirely separate regime for smaller banks, something that would require difficult-to-pass changes to EU legislation. Elderson said the ECB could make its requirements more predictable and that there was scope for making the capital stack, which is currently comprised of nine layers, simpler. In cases of failure, France has proposed subjecting Europe's biggest banks to a single buffer, rather than the current two. The ECB proposals are part of a broader simplification initiative being carried out by the European Commission. An ECB task force will consider all proposals before making its recommendations to the Commission by the end of the year. ($1 = 0.8575 euros) https://www.reuters.com/sustainability/boards-policy-regulation/ecbs-elderson-backs-easier-rules-small-banks-fewer-requirements-2025-11-14/

2025-11-14 11:18

Individuals will receive certification for holdings, easing path to future sales Levy is about half the tax on full value of gold sales lacking proof of purchase Supporters say measure will improve transparency, legal gold circulation Proposal targets 4,500–5,000 metric tons of privately held gold ROME, Nov 14 (Reuters) - Italy is considering a one-off levy for households to declare gold held off the books, an amendment to the 2026 budget law showed, in a move that could potentially yield the state more than 2 billion euros ($2.3 billion). The proposal would allow individuals to pay a 12.5% tax to certify the market value of bullion, gold jewellery and collectible coins for which purchase records are missing, the same rate as on government bonds. The certification has to be done by June 2026. Sign up here. Under current rules, the lack of proof of purchase can lead to a 26% tax on the entire sale value, rather than just the actual capital gain. This has discouraged people from selling their inherited gold on the official market and pushed some transactions into informal or undeclared channels, limiting market liquidity and tax revenues, lawmakers from the co-ruling League and Forza Italia party said. Some estimates put privately held gold in Italy at 4,500–5,000 metric tons, worth roughly 500 billion euros at current prices. Italy's network of "Compro Oro" shops — businesses that buy and sell gold — has seen a sharp rise in activity as prices hit record highs. Sales of used gold jumped by around 25% in 2025, with more than 1.2 million transactions per month, driven by households cashing in old jewellery and coins, according to Metropolitan Magazine, an Italian publication. Under the proposed measure, taxpayers opting in would declare their holdings at market value, pay the substitute tax in one or three annual instalments, and obtain a stepped-up fiscal value basis for future sales. The process would be overseen by authorised intermediaries and advisers, with strict anti–money-laundering checks. Supporters say the measure could generate significant one-off revenues for the Treasury, while improving transparency in a market long characterised by opaque holdings and informal family transfers. Based on an assumption that 10% of privately held investment gold is certified, the draft estimates additional revenue of up to 2.08 billion euros. The proposal also seeks to encourage the "legal circulation" of gold by removing what stakeholders see as a punitive regime for individuals unable to document purchases made years—or generations—ago. The amendment still needs to clear parliamentary scrutiny and government vetting. ($1 = 0.8575 euros) https://www.reuters.com/business/italy-weighs-one-off-levy-bring-private-gold-holdings-into-formal-economy-2025-11-14/

2025-11-14 11:15

BRUSSELS, Nov 14 (Reuters) - Abu Dhabi state oil firm ADNOC has received the EU's conditional greenlight for its 14.7 billion euro ($17 billion) bid for German chemicals company Covestro (1COVG.DE) , opens new tab, the European Commission said on Friday. It said the approval is conditional upon full compliance with the commitments offered by the parties, including ADNOC's proposed adaptation of its articles of association and sharing of Covestro's patents in the area of sustainability with some other market participants. Sign up here. People with direct knowledge of the matter told Reuters last week that they expected the deal to get approved. The Commission, the EU's competition enforcer, restarted its investigation into the deal on October 24 after stopping the clock on September 3 while waiting for requested information, according to an update on its site last Wednesday. ADNOC last month offered to change its articles of association to address EU concerns on its unlimited state guarantee, and also pledged to retain Covestro's intellectual property in Europe. It subsequently tweaked the latter element following feedback from rivals and customers. The deal, ADNOC's biggest acquisition yet and one of the largest foreign takeovers of an EU company by a Gulf state, has sparked EU concerns that the company may be using state subsidies to acquire Covestro. ($1 = 0.8575 euros) https://www.reuters.com/sustainability/boards-policy-regulation/adnocs-covestro-deal-gets-conditional-european-commission-greenlight-2025-11-14/

2025-11-14 11:02

Nvidia results on Wednesday could be key moment for tech, AI Stocks waffle during week amid shutdown end, rate uncertainty Walmart, Home Depot reports also due in coming week Investors brace for release of shutdown-delayed economic data NEW YORK, Nov 14 (Reuters) - Turbulence in technology stocks could ratchet higher in the coming week as investors react to the quarterly report from Nvidia Corp (NVDA.O) , opens new tab, the world's largest company by market value that is at the heart of Wall Street's artificial intelligence trade. Showing a steadier tone by late Friday, the benchmark S&P 500 (.SPX) , opens new tab equity index ended a volatile few days about flat on the week. Strength in the first three days yielded to a selloff on Thursday as uncertainty about the economic outlook and path for U.S. interest rates undercut optimism over the end of the longest-ever U.S. government shutdown. Sign up here. The Cboe's VIX stock volatility index (.VIX) , opens new tab, the market's so-called fear gauge, reached its highest in about a month early Friday as stock index futures slid in early trade. Investors remained skittish about vulnerability to technology shares, which stumbled this month on concerns AI exuberance has driven up valuations to expensive levels. With its AI chips, semiconductor giant Nvidia has been a bellwether for the theme that has lifted shares of an array of tech names as well as other companies involved in the vast infrastructure expansion to support AI use. Nvidia is the "epicenter" of the build-out of AI, so its results after the bell on Wednesday will be important to the tech sector as well as areas such as industrials and utilities, said Matt Orton, chief market strategist at Raymond James Investment Management. "If you don't see the growth that I think the market is expecting around Nvidia or the positive commentary that we are likely to get from Nvidia going forward, I think you're going to see more of a dent to those sorts of trades," Orton said. Nvidia shares have soared about 1,000% since the launch of ChatGPT in November 2022. This includes a year-to-date gain of more than 40% that made Nvidia the first company to surpass $5 trillion in market value last month. That market heft means the stock's moves can sway equity indexes. Nvidia carries an 8% weight in the S&P 500 and a roughly 10% weight in the widely followed Nasdaq 100 (.NDX) , opens new tab. Analysts on average expect the company to post a 53.8% year-over-year rise in fiscal third-quarter earnings per share, on revenue of $54.8 billion, according to LSEG. Analysts have also been getting more bullish about the company's future performance, with expectations for the company's fiscal 2027 revenue rising 15% since late May to about $285 billion currently, according to LSEG data. "The assumptions that the market is making are positive, it's getting priced into the stock, and how the company guides will be very important," said Melissa Otto, head of research at S&P Global Visible Alpha. Investors will also focus on commentary from Nvidia related to demand or spending trends. Capital expenditures from hyperscalers such as Microsoft (MSFT.O) , opens new tab and Amazon (AMZN.O) , opens new tab earlier in the reporting season indicated no signs of slowing in the build-out of data centers and other AI infrastructure. "You're not supposed to have any weakness given all the capital spending commitments from various companies," said Jimmy Chang, chief investment officer of Rockefeller Global Family Office. "Demand should still be looking pretty solid in the current environment." Nvidia's report is one of the biggest remaining market catalysts in 2025. The S&P 500 is logging a roughly 14% year-to-date gain, but Wall Street is wary of concerns stocks are in an "AI bubble." Investors appear to be bringing more scrutiny to AI investment announcements, said James Ragan, co-CIO and director of investment management research at D.A. Davidson. "We're moving into a stage where investors are going to demand a little bit more proof of concept in terms of what are the returns, what are the cash flows," Ragan said. Aside from Nvidia's results, quarterly earnings from retailers are due in the coming week including from Walmart (WMT.N) , opens new tab and Home Depot (HD.N) , opens new tab. A batch of economic data held up during the shutdown might also be released. While the S&P 500 tech sector has struggled so far this month, other sectors are logging solid gains in that time, including healthcare, materials and financials. "There's a realization that for investors, maybe that AI is not the only game in town," Ragan said. https://www.reuters.com/business/wall-st-week-ahead-skittish-tech-stock-investors-turn-nvidia-results-next-cues-2025-11-14/

2025-11-14 11:00

Myanmar's operating power capacity sank to 2015 level in 2024 - World Bank Western sanctions, lack of foreign exchange hit power grid Cheap Chinese panels support Myanmar's solar take-up Necessity, not climate goals, drive solar push beyond Myanmar Nov 14 (Reuters) - When Thailand cut power supply to Myanmar across its western border this year, it intended to curb online scam centres linked to regional networks trafficking hundreds of thousands of people. However, the move also hit the wider community, pushing hospitals and some offices to install solar panels, said Zaw, a rescue worker in Myawaddy town just across the Thai border. Homes, too, made the switch. Sign up here. "Three out of four people now rely on solar panels, with businesses using multiple panels," said Zaw, who did not want to disclose his full name, fearing retribution. Myanmar's electricity supply has deteriorated since the 2021 military coup and ensuing civil war, exposing millions to chronic blackouts, with a cash-strapped government hit by Western sanctions unable to maintain power infrastructure. The World Bank estimated the country's operating power capacity plunged to 2015 levels in 2024, describing electricity supply in conflict-affected areas as "catastrophic". Chinese firms have helped fill the gap, supplying cheap solar panels. NATURAL GAS SHORTAGE SAPS GENERATION Light intensity data - a proxy for economic activity and electricity access - analysed by the United Nations revealed an average 8% annual decline after the 2021 coup. The drop is largely due to a shortage of natural gas, Myanmar's main generation fuel, as domestic production has declined and the government has halted imports of liquefied natural gas due to a foreign exchange shortage, the World Bank said in a June 2024 report. Former U.S. President Joe Biden's administration froze about $1 billion of Myanmar assets and imposed sanctions, some of which have been eased by the Trump administration. Western sanctions have restricted access to technical support, spare parts, and expertise to maintain infrastructure, such as transmission lines damaged in the civil war. Myanmar's junta said earlier this year generation capacity had plunged by nearly half from pre-2021 levels. Data on the Ministry of Electric Power's website shows output has not changed much since 2018. The information ministry did not respond to detailed questions on power supply and demand, and the junta's spokesperson did not answer calls from Reuters. CHEAP SOLAR PANELS FROM CHINA To combat the power crisis, households and businesses are embracing solar, according to interviews with a dozen residents, business owners and panel and battery sellers across the Southeast Asian country. "Unlike most of Asia, where we're seeing corporate demand drive solar growth, energy security concerns and fuel shortages are the key drivers in Myanmar," said Linda Zeng, renewables analyst at Fitch Solutions unit BMI. Solar panel imports from China, Myanmar's largest supplier, more than doubled in the nine months through September to about $100 million, according to Chinese customs data. Shipments have risen over eightfold from pre-pandemic levels, the data showed. Shops, restaurants, and workshops seeking reliable power for lighting, refrigeration and electronic payments, as well as water kiosks, clinics, and schools increasingly use small solar systems, said an official from an international development agency working in Myanmar. "I have about 10 refrigerators. The electricity here is not regular, so I had to use solar panels," said an ice cream seller from the ancient city of Mawlamyine, who declined to be named due to fear of retribution. Household solar installations have surged from a few hundred in 2019 to roughly 300,000 in 2025, as users switch from diesel generators to solar panels with storage, said Ken Pyi Wa Tun, chairman of Parami Energy, which sells solar panels and diesel generators in Myanmar. "A household solar-plus-battery-plus-inverter can be acquired for under $1,000 and power essentials, run for four to five hours and power 2 AC units," Ken Pyi Wa Tun said. While that is too expensive for most homes, it is cheaper than the roughly $7,000 for a small diesel generator, plus fuel costs of $50 to $100 per week, he said, predicting solar could potentially power 2 million to 2.5 million Myanmar households. IT'S NOT ABOUT CLIMATE GOALS Myanmar's surging solar imports mirror a trend of increased solar adoption to escape erratic power supply in lower- and low-middle income countries such as Pakistan, Iraq, Sri Lanka, and Afghanistan. They are among the fastest-growing markets for panel exports from China, the world's dominant solar manufacturer, data from energy think-tank Ember showed. "If the grid is not reliable or the prices too high, then people will do it themselves. And now they can, thanks to solar," said Richard Black, director of policy and strategy at Ember. Solar adoption, driven by necessity rather than policy, could disrupt traditional utility models, challenge forecasts about fossil fuel demand and complicate grid management, analysts say. In Pakistan, a surge in affluent residents ditching the country's costly grid power by installing solar panels has forced utilities to raise prices even further for remaining customers. Diesel imports by Myanmar declined 11% in the first 10 months of 2025, data from analytics firm Kpler showed, while solar panel purchases grew. "It is not like we are using them for clean energy or for some environmental reasons. We are a country with civil war. We are just using them out of necessity," said a resident in the Bago region. https://www.reuters.com/sustainability/climate-energy/war-torn-myanmar-embraces-solar-tackle-power-crisis-2025-11-14/

2025-11-14 10:37

LONDON, Nov 14 (Reuters) - British finance minister Rachel Reeves does not plan to raise income tax at her upcoming annual budget on November 26 due to an improved fiscal outlook, a government source said on Friday. Reeves had been widely expected to break Labour's pre-election promise not to raise the rate of income tax to fill a budget shortfall, but late on Thursday the Financial Times reported she had scrapped these plans. Sign up here. https://www.reuters.com/world/uks-reeves-does-not-plan-raise-income-tax-government-source-says-2025-11-14/