2026-02-05 14:31
MOSCOW, Feb 5 (Reuters) - Russia's largest lender Sberbank (SBER.MM) , opens new tab is preparing to issue crypto‑backed loans, citing strong interest from corporate clients, and is ready to work with the central bank to develop regulation, the bank's spokesperson told Reuters on Thursday. In late 2025, Sberbank issued a pilot crypto‑backed loan to a crypto-mining company called Intelion Data which provided collateral in the form of cryptocurrency it had mined. The bank did not disclose the size of the loan. Sign up here. Sberbank's domestic rival Sovkombank was the first Russian lender to start issuing crypto-backed loans. Cryptocurrencies are playing a growing role in Russia's economy and foreign trade as transactions in most global currencies are targeted by Western sanctions, imposed after Russia launched military action in Ukraine. The Russian central bank defines cryptocurrencies as foreign exchange assets, permitting their purchase and sale but prohibiting domestic payments. The regulator plans to finalise a legislative framework for crypto assets by July 1, 2026. Sberbank said it aims to serve not only miners but also companies holding crypto assets. The decision follows similar moves by global banks with JPMorgan exploring crypto-backed loans while Wells Fargo is already offering them. https://www.reuters.com/sustainability/boards-policy-regulation/russias-sberbank-plans-crypto-backed-loans-corporate-clients-2026-02-05/
2026-02-05 14:20
LONDON, Feb 5 (Reuters) - British employers' expectations for wage growth cooled a bit further in January, according to a survey published by the Bank of England which is looking out for further signs of a slowdown in pay rises before it next cuts borrowing costs. Expected year-ahead wage growth dropped by 0.1 percentage points to 3.6% on a three-month moving-average basis in January, the joint-lowest reading since the series started in 2022, the Monthly Decision Maker Panel survey showed on Thursday. Sign up here. Companies' expectations for how much they will raise prices in the coming 12 months also inched down slightly, falling by 0.1 percentage points to 3.5% in the three months to January. The BoE held interest rates at 3.75% on Thursday, and financial markets are pricing in one or two quarter-point cuts in 2026. While Britain's headline rate of inflation rose to 3.4% in December, the central bank said there was scope for further reductions to borrowing costs this year if an expected sharp fall in inflation from April proved persistent. The DMP survey showed companies' expectations for inflation in the economy as a whole over the year ahead decreased to 3.2% in the three months to January from 3.4% in the three months to December. Businesses also said they expected to reduce employment levels by 0.2% over the next year, compared with a 0.4% fall that was expected in December's survey. https://www.reuters.com/sustainability/sustainable-finance-reporting/british-firms-wage-growth-expectations-cool-slightly-boe-survey-shows-2026-02-05/
2026-02-05 12:50
LONDON, Feb 5 (Reuters) - Big hedge funds that trade in stocks had their worst day in almost a year on Wednesday as crowded trades lost value in the tech-driven selloff, Goldman Sachs said in a note to clients released after the market closed. Investors have rotated out of technology companies and into defensive stocks such as Walmart (WMT.O) , opens new tab on fears of AI disruptions to jobs. Sign up here. The recent selloff, triggered by a new legal AI tool from Anthropic's Claude large language model, has rippled out across the world. Hedge fund managers, whose strategies focus on tech, telecoms and media companies, were down as much as 2.78% on Wednesday, Goldman said in the note, which was seen by Reuters on Thursday. For investors to receive double-digit annual returns net of fees, hedge funds must average between one and two percent positive returns a month. To lose this amount in a single day could potentially have an impact on monthly returns. Many other hedge fund strategies that also trade equities gave up profits on Wednesday, including systematic stock traders and those that pick stocks fundamentally. These funds had losses of 0.76% and 0.84% respectively, said Goldman's note. Multi-strategy hedge funds, which trade different kinds of financial instruments under one roof, saw their stock portfolios down by 1.9% in their worst day since April 9 last year when markets were still reeling from U.S. President Donald Trump's sweeping tariff announcement, the note added. They were caught in what the bank described as a momentum selloff. Momentum trading follows a stock's rise or fall, regardless of how near a top or trough it might be. Goldman said hedge funds on Wednesday were caught in crowded trades and gave up profits trying to exit concentrated long positions. The bank noted that multi-strategy funds were still up 3.9% for the year so far. https://www.reuters.com/sustainability/boards-policy-regulation/hedge-flow-hedge-funds-hit-by-ai-sell-off-goldman-sachs-says-2026-02-05/
2026-02-05 12:40
Feb 5 (Reuters) - Intercontinental Exchange (ICE.N) , opens new tab posted a rise in fourth-quarter profit on Thursday, as the New York Stock Exchange parent benefited from stronger trading volumes in a volatile market. The company reported a net income of $862 million, or $1.49 per share, compared with $709 million, or $1.21 per share, a year earlier. Sign up here. Volatile markets typically boost volumes at exchanges, as traders hedge their positions more aggressively and investors reshuffle their portfolios. The Trump administration's trade policies and geopolitical tensions have spurred uncertainty in markets, while the Federal Reserve's interest-rate path has driven further speculation. ICE has posted consecutive quarters of growth in the energy segment, as protracted conflicts in Ukraine and the Middle East have fueled turbulence in oil markets. In the fourth quarter, revenue from energy trading rose 15% to $548 million, lifting the exchanges segment, its biggest revenue generator, to $1.36 billion. "Entering 2026, we believe the tailwinds behind our businesses are strong," CEO Jeff Sprecher said. The exchange operator also increased its quarterly dividend by 8% to 52 cents per share in the first quarter of 2026, underpinning expectations of a strong year ahead. The company is also foraying into products beyond its segments by seeking a nod for a digital platform that would enable 24/7 trading of tokenized securities and a prediction markets bet through an up to $2 billion stake in Polymarket. The company's fixed income and data services segment, through which it sells subscription-based pricing data for certain debt assets like bonds, posted a 5% jump in revenue. ICE reported a total net revenue of $2.5 billion, 8% higher than the $2.32 billion it posted a year earlier. Shares of the company were up 2% in premarket trading. https://www.reuters.com/business/nyse-parent-ices-profit-rises-stronger-trading-volumes-2026-02-05/
2026-02-05 12:40
LONDON, Feb 5 (Reuters) - Bank of England governor Andrew Bailey said on Thursday that his main message was one of good news, speaking after central bank's decision to keep interest rates on hold at 3.75%, following an unexpectedly narrow 5-4 vote. "My main message today is one of good news. Disinflation is on track and looks to be ahead of the schedule that we expected in November," Bailey told a press conference. Sign up here. https://www.reuters.com/world/uk/boes-bailey-says-his-main-message-is-one-good-news-2026-02-05/
2026-02-05 12:28
LONDON, Feb 5 (Reuters) - Sterling and two-year gilt yields fell on Thursday after the Bank of England held rates steady in a surprisingly narrow vote and said it expected a future cut if inflation continued to slow. The pound extended losses against the dollar after the decision, and was last down 0.8% at a near two-week low of $1.3542. Sign up here. UK short-dated two-year gilt yields - which reflect short-term interest rate expectations - slipped after the decision to a three-week low of 3.63%, down 9 basis points on the day. UK 10-year gilt yields fell marginally and were last down 1.5 bps at 4.534%. The blue-chip UK FTSE 100 pared some earlier losses after the decision, but still down 0.1% on the day. https://www.reuters.com/world/uk/sterling-short-term-gilts-yields-fall-after-dovish-boe-vote-2026-02-05/
