2025-01-27 13:39
Jan 27 (Reuters) - Canadian wholesale trade most likely rose 0.1% in December from November, largely driven by higher sales in the motor vehicle and motor vehicle parts and accessories subsector, Statistics Canada said in a flash estimate on Monday. The estimate was calculated based on a weighted response rate of 65.0%. The average weighted response rate for the survey over the previous 12 months has been 82.1%. NOTE: All figures are seasonally adjusted. Keywords: CANADA ECONOMY/WHOLESALE Sign up here. https://www.reuters.com/markets/canada-december-wholesale-trade-most-likely-up-01-statscan-flash-estimate-2025-01-27/
2025-01-27 12:43
Jan 27 (Reuters) - India's central bank announced on Monday a host of measures to inject liquidity into the banking system, including bond purchases and dollar/rupee swaps, which analysts and traders said could be a precursor to a rate cut next month. The Reserve Bank of India's (RBI) measures, expected to collectively infuse 1.5 trillion rupees ($17.39 billion) into the banking system, come after months of a cash crunch in the banking system that had pushed up overnight and short-term lending rates. "The urgency that was being felt in the market has been addressed by the RBI through these steps," said A Prasanna, head of research at ICICI Securities Primary Dealership. "I think a rate cut would be the next logical action," Prasanna said, adding the announcements signal that the central bank is more confident about inflation management. The RBI's rate-setting panel will announce its policy review on Feb. 7, after the annual federal budget on Feb. 1. As part of the package, the RBI will buy government bonds worth 600 billion rupees in three tranches and conduct a 56-day variable rate repo auction worth 500 billion rupees on Feb. 7, it said. It will also conduct a USD/INR buy/sell swap auction of $5 billion for a tenor of six months on Jan. 31. The RBI "will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions," it said. India's banking system liquidity deficit had widened to a one-year peak in the previous fortnight. The daily average banking system liquidity deficit jumped to 2.39 trillion rupees in the fortnight that ended on Jan. 24, as per latest RBI data. Liquidity has been in short supply due to slow government spending. Treasury officials, who had met the central bank three weeks ago, had suggested longer-term repos, forex swaps and bond purchases to bridge the cash deficit in the banking system. The benchmark bond yield could drop 5 basis points when it opens on Tuesday, said Ritesh Bhusari, joint general manager for treasury at South Indian Bank. Yields had dipped on Monday after data showed the RBI had already started buying bonds to infuse liquidity after announcing regular overnight repo auctions intended to give comfort to the markets. "The measures are a signal to the market that inflation worries are behind us and that the RBI could begin easing monetary policy," Bhusari said. ($1 = 86.2780 Indian rupees) Sign up here. https://www.reuters.com/world/india/india-central-bank-announces-slew-measures-inject-liquidity-banking-system-2025-01-27/
2025-01-27 12:41
LONDON, Jan 27 (Reuters) - Bitcoin fell below $100,000 on Monday, hitting its lowest in 11 days, in a move analysts attributed to a wave of caution after the surging popularity of a Chinese artificial intelligence model sparked a selloff in Western AI-related stocks. The world's biggest cryptocurrency struggled to make gains last week, as a rally that had seen it break above $100,000 after U.S. President Donald Trump's election ran out of steam. At 1156 GMT, bitcoin was at $98,852.17 , down around 6% on the day, having fallen sharply in early trading to hit its lowest since Jan. 16. Technology stocks plunged, as traders worried that Chinese AI startup DeepSeek could threaten Western companies' dominance of the sector, in a move some called AI's "Sputnik moment", referring to the former Soviet Union's launch of a satellite that marked the start of the space race in the late 1950s. Bitcoin's losses are "seemingly driven by some risk-off sentiment circulating the markets currently due to DeepSeek," wrote eToro analyst Simon Peters. Geoffrey Kendrick, global head of digital asset research at Standard Chartered, said a decline in Nasdaq futures had hurt crypto markets, but that disappointment over the Trump administration's announcement about a cryptocurrency stockpile had put digital assets more at risk of a sharp selloff. Crypto failed to feature in Trump's day-one announcements after taking office last week, leaving some investors disappointed. In an executive order on Thursday, Trump created a working group to draft new crypto rules and explore a crypto stockpile, while the Securities and Exchange Commission (SEC) spiked accounting guidance that the industry said had stymied crypto adoption. The prospect of interest rates staying higher for longer also hurt riskier assets, said Thomas Puech, CEO of digital asset hedge fund Indigo. U.S. Federal Reserve policymakers meet this week and are expected to keep interest rates on hold. Sign up here. https://www.reuters.com/technology/bitcoin-drops-11-day-low-amid-tech-selloff-2025-01-27/
2025-01-27 12:30
Jan 27 (Reuters) - Starbucks (SBUX.O) , opens new tab is set to report its fourth straight quarter of comparable sales decline on Tuesday, in what could be another blow to investors waiting for new chief Brian Niccol's efforts to turn the tables for the struggling coffee chain. Niccol, who is four months into his new role at Starbucks, has set forth a raft of measures to improve the coffee chain's business, which has taken a hit from increased competition and weakening demand in the U.S. and China. The company in October suspended forecast for its fiscal year 2025, as it executes Niccol's strategy that includes lowering wait times and implementing a "coffeehouse code of conduct" that will require customers to make purchases if they wish to use the restrooms or log-on to in-store Wi-Fi. Earlier this month, Starbucks also said it would cut some jobs , opens new tab and reduce the extra layers of management to focus on improving in-store operations by increasing store hours to meet Niccol's target of wait times of less than four minutes. "A key debate among investors is whether the customer and employee experience can be improved in a matter of quarters or years. We are in the former camp and have been encouraged by the initial changes," Stifel analyst Chris O'Cull said, suggesting that Starbucks can revive traffic in a matter of a few quarters. Although, this quarter may not be the one where the company sees the desired results. Starbucks is expected to post a 4.6% fall in comparable store in first-quarter sales, while profit is set to slump about 26%, its fourth straight quarter of declines, according to estimates compiled by LSEG. "We think management will continue to focus on consumer experience over near-term margins where it may be multiple quarters before they feel comfortable pulling back on hours," RBC Capital Markets analyst Logan Reich said. The company is also pausing price hikes this year, even as the cost of coffee soars, which could weigh on the company's margins. In 2024, Starbucks' shares were down about 20% up until Niccol's appointment, since then they have jumped 28% as of Friday's close. Sign up here. https://www.reuters.com/business/retail-consumer/starbucks-sales-set-drop-again-investors-wait-turnaround-2025-01-27/
2025-01-27 12:24
PARIS, Jan 27 (Reuters) - A British sailor was lost at sea after his yacht was found wrecked off the southwest French coast amid heavy storms over the weekend, French maritime authorities said. The search for the 73-year-old came as Storm Herminia battered western France. France's national weather agency on Monday placed the Ile-et-Vilaine department, in western France, on red alert due to the risks of major floods. The distress beacon of the yacht was detected around 80 km (50 miles) west of Lacanau on Saturday afternoon, and a helicopter dispatched to the scene found the sailboat, the Prefet Maritime de l'Atlantique said in a statement late on Sunday. The helicopter winched its two divers on board, who discovered an empty life raft. A cargo vessel and the Spanish hospital ship Esperanza del Mar were also mobilised to search for the man. After several hours of searching and due to a lack of any new information, the search was suspended in the early hours of Sunday. Sign up here. https://www.reuters.com/world/europe/british-sailor-lost-sea-heavy-storms-hit-western-france-2025-01-27/
2025-01-27 12:19
Jan 27 (Reuters) - Humanity Protocol has secured a fully diluted valuation of $1.1 billion after raising $20 million in a funding round co-led by Pantera Capital and Jump Crypto, the identity verification blockchain firm said on Monday. The company is building a system that will use palm scans to verify that online accounts belong to real people. It plans to use the funds to launch its product more widely in the next few months. "The protocol allows people to prove they are human without revealing personal details. This helps solve problems like bots, fake accounts and online fraud," founder Terence Kwok told Reuters. A fully diluted valuation refers to the total value of a company if all potential shares and options are issued. Companies specializing in digital identity verification are expected to gain traction as the rise of artificial intelligence sparks concerns about deepfakes. The growing threat of cyber fraud has also driven demand for more efficient tools, attracting increased investor interest in the sector. Blockchain startups are turning to biometrics to capitalize on the demand. World Network, a company co-founded by OpenAI CEO Sam Altman, allows users to create a verified ID that can be generated with images of their face and eyes. Humanity Protocol is also close to launching its own crypto token, "with the final preparations underway to ensure a smooth launch", Kwok said. Startups focused on crypto and blockchain are anticipating a resurgence in popularity after the return of President Donald Trump to the White House. Trump has supported the industry and pledged to cut burdensome regulation. "I'm excited to see the new innovations that will be better supported under this administration. A pro-business environment could accelerate the development of blockchain-based solutions and attract investment," Kwok added. Sign up here. https://www.reuters.com/technology/humanity-protocol-valued-11-bln-after-latest-fundraise-2025-01-27/
