2025-01-15 16:56

JERUSALEM, Jan 15 (Reuters) - Israel's inflation eased more than expected in December to end 2024 at 3.2% versus 3.0% in 2023, according to data on Wednesday from the Central Bureau of Statistics that could entice policymakers to start reducing interest rates soon. The annual inflation rate (ILCPIY=ECI) , opens new tab in December eased to its lowest level since July, slowing from 3.4% in November. The December rate was below expectations of 3.4% in a Reuters poll but still exceeds the government's 1%-3% annual target range. Government officials have largely blamed war-related supply issues for the spike in inflation over the past year, when price pressures have eased globally, although the central bank believes demand is also helping to keep prices high. The consumer price index (ILCPI=ECI) , opens new tab slowed by a bigger than expected 0.3% in December from November on lower costs of fresh produce, transportation, shoes and entertainment. These were only partly offset by gains in the price of housing, healthcare, food and clothing. A Reuters poll had expected a 0.1% decline. After cutting its benchmark interest rate last January, the Bank of Israel has left the rate unchanged since, including most recently at its Jan. 6 policy meeting when it cited expectations of higher inflation in coming months and economic uncertainty caused by Israel's war with the Palestinian militant group Hamas in Gaza. But central bank governor Amir Yaron also held out the prospect of rate reductions should price pressures start to ease. The bank next decides on rates on Feb. 24. Prices on a host of goods including water and electricity as well as some taxes have risen at the start of 2025. "Despite the decline this month (December), we expect the annual inflation rate to continue to rise in the coming months due to the wave of price increases that has already been announced by various manufacturers and importers and due to the increase in VAT," said Dror Ohev Zion, chief executive of real estate marketing firm Dara. "The inflation rate is high and beyond the target set by the Bank of Israel. This fact is very disturbing and burdensome for both entrepreneurs and home buyers." The shekel was 0.5% higher versus the dollar at 3.61. Sign up here. https://www.reuters.com/world/middle-east/israel-inflation-eases-december-32-rate-2024-2025-01-15/

2025-01-15 16:33

Republicans Peirce and Uyeda to kick off crypto changes Pair are weighing freezing some enforcement actions Expected to call for feedback on potential new regulations WASHINGTON, Jan 15 (Reuters) - Top Republican officials at the U.S. Securities and Exchange Commission are poised to begin overhauling the agency's cryptocurrency policies potentially as early as next week when President-elect Donald Trump takes power, said three people briefed on the matter. Among the measures commissioners Hester Peirce and Mark Uyeda are weighing are initiating the process that would ultimately lead to guidance or rules clarifying when the agency considers a cryptocurrency to be a security, and reviewing some crypto enforcement cases pending in the courts, two of the people said. Paul Atkins, Trump's crypto-friendly pick for SEC chair and former agency commissioner, is widely expected to end a crypto crackdown led by President Biden's Democratic SEC chair Gary Gensler, but it is unclear when the Senate will confirm him. Gensler has said he will step down on Jan. 20 when Trump is sworn in. As of next week, Peirce and Uyeda will hold the majority among the agency's politically-appointed commissioners and are poised to get the ball rolling in the interim, the people said. Like Atkins, the pair are crypto enthusiasts who have criticized Gensler's tough stance on the industry and have in the past floated alternative crypto-friendly initiatives. Peirce and Uyeda were aides to Atkins when he was at the SEC from 2002 to 2008 and the three have a good relationship, according to one of the sources and several other former SEC officials. The three have discussed potential crypto policy changes, said the sources who declined to be identified discussing private policy plans. Peirce, Atkins and their representatives did not respond to requests for comment. A spokesperson for Uyeda did not respond to a request for comment. Worried about fraud and market manipulation, Gensler's SEC brought at least 83 crypto-related enforcement actions , opens new tab, suing multiple prominent companies like Coinbase (COIN.O) , opens new tab and Kraken, agency data shows. In many cases, the SEC argued crypto tokens behave like securities and that the companies and their products should comply with SEC rules, although some allege fraud. In the first few days of the new administration, the SEC is expected to begin a review of those court cases and potentially freeze some litigation that does not involve allegations of fraud, said two of the sources. Some of those cases could eventually be withdrawn. Many of those defendants argue cryptocurrencies are more like commodities than securities and that it is not clear when SEC rules apply. They have called for the SEC to write new regulations which would clarify when a token is a security. Peirce and Uyeda are expected to kick off the early stages of that rule-writing process, likely with a call for industry and public feedback, the two sources said. Reuters and others have previously reported that the SEC is also likely to quickly rescind accounting guidance that has made it prohibitively costly for some listed companies to hold crypto tokens on behalf of third parties. Trump, who courted crypto campaign cash with pledges to be a "crypto president," is also expected to issue executive orders urging regulators to review their crypto policies, Reuters reported. Bitcoin soared past $100,000 for the first time in December on excitement over the new crypto-friendly administration. 'HELD ACCOUNTABLE' Still, even with a head start, reaching an agreement on crypto regulations could take months or longer, as could resolving complex enforcement actions that hinge on the definition of a security. Dismissing dozens of enforcement actions would be unprecedented, and could set a risky precedent by politicizing the enforcement process, said Philip Moustakis, partner at Seward & Kissel and former SEC attorney. In some cases, the court may object, said other lawyers. One option for the agency would be to re-open settlement negotiations, said Robert Cohen, a partner at Davis Polk who previously worked in the SEC's enforcement division. Settlement talks, aimed at averting lengthy and public litigation, are the norm, but crypto companies say the SEC under Gensler has been unwilling to engage in substantive discussions. Cohen added the new SEC leadership would likely continue to take a tough line on crypto fraud. "I think the industry wants to see fraudsters or wrongdoers held accountable," he added. Sign up here. https://www.reuters.com/world/us/trumps-new-sec-leadership-poised-kick-start-crypto-overhaul-sources-say-2025-01-15/

2025-01-15 15:46

LISBON, Jan 15 (Reuters) - U.S. private equity fund Lone Star and Portuguese authorities are set to share 1.3 billion euros ($1.34 billion) when Novo Banco makes its first dividend payout in the coming months. Novo Banco was created in 2014, carved out of the collapsed Portuguese bank BES after a multi-billion-euro state bailout. Since 2017 Novo Banco has been 75% owned by U.S. private equity Lone Star, with the Portuguese banking resolution fund and the state owning the remaining 25% stake. Finance Minister Joaquim Miranda Sarmento said on Wednesday that "Novo Banco asked the European Central Bank for authorisation to distribute that amount of dividends" to shareholders taking into account the bank's results and its accumulated excess capital following a long ban on dividend payouts. The bank was banned from making dividend payouts from 2017 until December 2025, but last month the three shareholders agreed to lift that ban, paving the way for a potential initial public offering this year. It has become overcapitalised with a core Tier-1 fully loaded capital ratio of 20.7%, more than double the minimum requirement of 9.3%. "The state as a whole - resolution fund and the Treasury - should receive more than 300 million euros in dividends in April or May, which is still a small part of what taxpayers put in the bank," the minister said. Novo Banco lost 1.3 billion euros ($1.37 billion) in 2020, pressured by impairments still linked to assets inherited from BES, but returned to profit in the following three years. It made a consolidated net profit of 610 million euros in the first nine months of 2024. ($1 = 0.9677 euros) Sign up here. https://www.reuters.com/business/finance/novo-banco-owners-receive-134-bln-when-bank-makes-first-dividend-payment-2025-01-15/

2025-01-15 15:30

Assets hit record high after strong markets in Q4 Total net inflows hit $281 billion HPS deal set to close in first half of the year, Preqin in Q1 Senior executive Wiedman to depart the firm NEW YORK, Jan 15 (Reuters) - BlackRock (BLK.N) , opens new tab posted a 21% fourth quarter jump in profit after buoyant equity markets increased income from fees and drove its assets to a record high of $11.6 trillion, the world's largest money manager said on Wednesday. Assets managed by the New York-based company increased to $11.55 trillion from $10.01 trillion a year earlier and $11.48 trillion in the third quarter. The growth was partly driven by a U.S. stock market rally after Donald Trump's presidential election victory in November prompted investors to bet on lower corporate taxes and deregulation. BlackRock's quarterly results complete a banner year for the asset manager, which has sought to strengthen its position in rapidly growing private markets. It spent about $25 billion last year on infrastructure investment fund Global Infrastructure Partners and private credit business HPS Investment Partners. "For many companies, periods of M&A contribute to a pause in client engagement. At BlackRock, clients are instead embracing and rewarding our strategy," CEO Larry Fink said in a statement on Wednesday. Net income rose to $1.67 billion, or $10.63 per share, in the three months to Dec. 31 from $1.38 billion, or $9.15 per share, a year earlier. BlackRock registered $201 billion in long-term net inflows in the fourth quarter. Total net inflows hit $281.4 billion, up from $95.6 billion a year ago. A majority of the long-term inflows were captured by exchange-traded funds (ETFs), at $142.6 billion. Clients poured $23.8 billion into BlackRock's fixed-income products. The benchmark S&P 500 index (.SPX) , opens new tab gained 2.1% in the fourth quarter and finished the year up 23.3%, marking its second straight year of gains exceeding 20%. "Strong asset inflows this quarter contributed to a record-setting year for BLK," said Kyle Sanders, senior equity research analyst at Edward Jones. This, he said, "should boost investor confidence that the long-awaited great rotation, where investors move off the sidelines and start to 're-risk' by investing in equity and fixed income products, is beginning to materialize." Shares of the company were up nearly 4% at $1,000 in early trading on Wednesday. 'NOT FEELING ANY OLDER' BlackRock in June struck a $3.2 billion deal to acquire UK data provider Preqin as it seeks to offer indexes for private markets. Initially, BlackRock anticipated finalizing the Preqin deal by the end of 2024, but Britain's competition regulator last month launched a probe into the transaction and has set Feb. 12 as the deadline for a decision on the first leg of that review. BlackRock's Chief Financial Officer Martin Small said on Wednesday he now expected the deal to close in the first quarter of 2025, while the HPS deal should close within the first half. BlackRock's private markets buying spree may not be over, with the asset manager expected to opportunistically expand further in private credit, real estate, infrastructure, or possibly private equity, Reuters has reported. In a CNBC interview on Wednesday, though, Fink said it was unlikely the company would buy whole companies. Separately, and confirming earlier reports, Fink also said on Wednesday BlackRock senior executive Mark Wiedman, previously touted as a possible Fink successor, is leaving. Fink added many leaders were taking on new, expanded roles. Wiedman said in an email he would stay with the firm for the next few months and then work out his next move. Another executive, Salim Ramji, left BlackRock in January 2024 and went on to become the CEO of asset management company Vanguard Group. Ramji was also once touted as a potential successor to Fink, who is 72 years old. BlackRock's earnings call on Wednesday was Fink's 100th. "I can't say I feel any older," he said. Sign up here. https://www.reuters.com/business/finance/blackrock-assets-hit-record-116-trillion-fourth-quarter-2024-2025-01-15/

2025-01-15 15:22

Jan 15 (Reuters) - Peru's gross domestic product expanded 3.93% in November compared with the same month of 2023, marking the eighth-consecutive month of economic expansion, the South American government's INEI statistics agency said on Wednesday. November's economic expansion in the world's second-largest copper-exporting nation landed comfortably above the 3.1% forecast of analysts polled by Reuters, and topped October's growth rate of 3.38%. Peru saw double-digit growth in its farming and fishing sectors, growing 12.4% and 17.6% respectively. Peru is a top producer of fishmeal, a fertilizer made using anchovies. The manufacturing sector also grew 6.7%. Peru's key mining and hydrocarbon sector, however, dipped 2.2% while its construction sector shrunk 2.4%. INEI attributed the lower mining output to less production of metals such as copper, zinc, gold, lead and molybdenum, even as Peru increased its hydrocarbon output. November's GDP growth marks the biggest monthly expansion since July. Peru's central bank has predicted growth of 3.2% through 2024, after the country fell into a recession the previous year due to challenging climate, lower private investment and lingering impacts from anti-government protests. For 2025, the central bank forecasts GDP growth of 3.0%. Sign up here. https://www.reuters.com/world/americas/copper-giant-peru-sees-economy-expand-eighth-straight-month-2025-01-15/

2025-01-15 15:07

TORONTO, Jan 15 (Reuters) - Canadian home sales took a breather in December but were still 10% higher in the fourth quarter compared to the third quarter as the Bank of Canada cut borrowing costs, data from the Canadian Real Estate Association (CREA) showed on Wednesday. The fourth quarter increase stood among the stronger quarters for activity in the last 20 years outside of the pandemic, CREA said. “The number of homes sold across Canada declined in December compared to a stronger October and November, although that was likely more of a supply story than a demand story,” Shaun Cathcart, CREA’s senior economist, said in a statement. “Our forecast continues to be for a significant unleashing of demand in the spring of 2025, with the expected bottom for interest rates coinciding with sellers listing properties for sale in big numbers once the snow melts.” The Bank of Canada has cut interest rates by 1.75 percentage points since June to 3.25% to support the economy. Sales fell by 5.8% in December from November but were up 19.2% on an annual basis. The industry group's home price index edged up 0.3% on the month and was down 0.2% annually. Sign up here. https://www.reuters.com/world/americas/canadian-home-sales-fall-december-up-10-fourth-quarter-2025-01-15/