2024-03-18 11:24

March 18 (Reuters) - Nasdaq (NDAQ.O) , opens new tab said on Monday it had resolved issues impacting connectivity at the exchange, and all systems were operating normally. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/nasdaq-says-issues-impacting-connectivity-resolved-2024-03-18/

2024-03-18 11:18

LONDON, March 18 (Reuters) - The pound held steady on Monday as investors waited for the Bank of England decision later in the week, with the focus on the Bank of Japan and Federal Reserve in the meantime. Sterling was broadly unchanged from Friday at $1.2379. It fell 1.2% last week as U.S. inflation data beat expectations, boosting bets that the Fed will hold rates higher for longer and causing the dollar to rally. The euro was up 0.1% at 85.58 pence. The Bank of England will almost certainly hold rates at 5.25% on Thursday as officials wait for more data, particularly on wages and services, on how durable the recent fall in inflation might be. Price growth in Britain has slowed from 11.1% in October 2022 to 4% in January. February's consumer price index inflation figures are due on Wednesday and are expected to show a further fall to 3.6%. "GBP (sterling) has been one of the best performing currencies this year, but with inflation surprises tilting lower and softer labour market indicators materialising, the BoE could err on the dovish side," said Paul Mackel, global head of FX research at HSBC. "This would support our higher EUR-GBP view." Before that, investors are focused on the Bank of Japan's decision on Tuesday, which could see the central bank end eight years of negative interest rates. Then the focus will turn to the Fed on Wednesday, where analysts will scrutinise the new 'dot plot' of officials' projections for where rates are heading. The dollar index was slightly lower on Monday at 103.37. It has climbed around 2% this year as U.S. economic data has come in stronger than expected. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/sterling-treads-water-ahead-boe-decision-2024-03-18/

2024-03-18 11:03

NEW YORK, March 18 (Reuters) - While bond investors expect the U.S. Federal Reserve to keep rates unchanged at its policy announcement on Wednesday, the market reaction could hinge on what Fed officials indicate about stubborn inflation and if their signals get more hawkish about the timing and extent of any easing this year. Stronger-than-expected economic growth and stickier inflation this year has led investors to push back expectations on the U.S. central bank's first rate cut to June, from May, and reduce bets on how many cuts are likely this year. Traders are now pricing in three 25 basis points cuts, in line with Fed policymakers' median expectations made in December. The Fed is due to give updated economic projections and refresh its "dot plot" graphing policymakers' interest rate projections at the meeting. "What will be really interesting to see is if the Fed is still comfortable in the dot plots to still be showing the possibility of three rate cuts for this year," said Matt Eagan, head of the full direction team at Loomis, Sayles & Co. "Or will they start to say we've got to push back against this a little bit longer." Benchmark 10-year Treasury yields rose to a near one-month high of 4.328% on Monday and have jumped from 4.052% a week ago as traders adjust for the possibility of a more hawkish Fed. The Fed pivoted to a more dovish outlook in December on growing confidence that inflation was on track to its 2% annual target. Inflation has since picked up, though analysts note that recent hotter-than-expected consumer and producer price index reports likely reflected seasonal factors. Powell said after the Fed's January meeting that the central bank wants more confidence that inflation will continue to decline before cutting rates. "The Fed doesn't want to break anything," said Padhraic Garvey, regional head of research, Americas at ING, adding that when inflation gets closer to 2% the Fed will likely "use that opportunity as one to get rates off the highs." In the meantime, the Fed may caution about the prospect of near-term rate cuts. "The main focus is which way they lean," said Stephen Gola, head of U.S. Treasuries Sales & Trading at StoneX Group. An unexpected uptick in unemployment last month could keep the Fed circumspect on growth, offsetting some of the inflation concerns. Another possibility is that Powell could adopt a more hawkish tone by referencing loose financial conditions as stock markets hit records and corporate credit draws enthusiastic demand. "He didn't say it (in January) but stocks have only gone higher and I think they're going to struggle to achieve what they want to achieve as long as that's the case," Gola said. Powell in November cited financial conditions when higher Treasury bond yields, mortgage rates and other financing costs were having a tightening impact on the economy. His comments were interpreted as potentially leading the Fed to hike rates less than expected. HOW MUCH MORE QT? The Fed may also signal that it is getting closer to tapering its quantitative tightening (QT) program, in which it allows bonds to roll off its balance sheet without replacement. QT is meant to remove excess liquidity created by record bond purchases designed to stimulate the economy during COVID-related business shutdowns. So far QT has helped shrink the Fed's balance sheet to $7.5 trillion from a peak of around $9 trillion. With ample liquidity remaining in the market, Garvey said there is no urgency to address the issue. "In our calculations we've still got about $1 trillion worth of excess liquidity in the system," Garvey said. "If I saw the Fed getting concerned about taking liquidity away too fast it would lead me to get a bit concerned that they've seen something that we're not seeing in the system." The Fed may also expand on Fed Governor Christopher Waller's comments that it may look to shift its mix of purchases to hold more shorter-dated Treasuries instead of mortgage-backed debt. "Longer maturities have a bigger effect on the market," said Eagan. By reducing duration but still buying Treasuries, they can potentially decrease the market impact "without upsetting the plumbing of the liquidity within the banking system," he said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/sticky-inflation-could-be-wild-card-easing-timetable-fed-meeting-2024-03-18/

2024-03-18 10:58

March 18 (Reuters) - Astera Labs said on Monday it was targeting a valuation of up to $5.18 billion after it upsized its U.S. initial public offering, as the chip firm looks to ride the boom in artificial intelligence. The company said it, along with some of its existing shareholders, is now aiming to raise up to $673.2 million by selling 19.8 million shares priced between $32 and $34 apiece. The company is offering nearly 16.8 million shares, while the selling stockholders are offering about 3 million shares. Astera had said earlier this month it was aiming to raise up to $534 million by selling 17.8 million shares priced between $27 and $30 each. It had then aimed a valuation of up to $4.5 billion. The listing comes at a time when growing popularity of AI and its influence across various sectors has been driving a rally in technology firms, propelling stocks of companies such as Nvidia (NVDA.O) , opens new tab to record highs. Astera will list its shares on the Nasdaq Global Select Market under the ticker symbol "ALAB". Morgan Stanley and J.P. Morgan Securities are the lead underwriters for the offering. Get U.S. personal finance tips and insight straight to your inbox with the Reuters On the Money newsletter. Sign up here. https://www.reuters.com/markets/deals/astera-labs-seeks-raise-6732-million-upsized-us-ipo-2024-03-18/

2024-03-18 10:45

NEW YORK/LONDON, March 18 (Reuters) - A bumper crop of 40 high-profile hedge fund launches by former portfolio managers of multi-billion dollar firms is expected this year, said research firm PivotalPath and other prime broker and industry sources. Traders from Citadel, Lone Pine Capital, Oaktree Capital Management and Paloma Partners are among those fundraising for their own ventures, people familiar with the matter said. Launches by executives who have recently exited major firms usually attract a lot of interest from investors who expect they will be able to replicate their old shops' performance. "Many of these people have done extremely well and may be looking for something more independent," said Jon Caplis, chief executive of hedge fund research firm PivotalPath which tracks launches through prime brokers and investor sources. PivotalPath is tracking 40 planned high-profile launches this year, compared to 26 expected this time last year. Prime brokers and investors told Reuters they were also expecting a lot of debuts by managers who have left big firms. Tommaso Trento, former portfolio manager at global hedge fund giant Citadel, plans to launch Benchstone Capital Management, focusing on consumer and technology, media and telecom (TMT) stocks, said a person familiar with the matter. Trento plans to raise $750 million, the source said. Arthur Wit, a former Lone Pine Capital partner, is fundraising for his Perryridge Capital, a long/short equities hedge fund focused on healthcare and industrials globally, a person familiar with the matter said. The launch is expected in the second half of the year. In a rare woman-led debut, Chiki Gupta Brahm, another former Citadel portfolio manager, is expected to launch Tessellis Capital Management at the end of the year, trading industrials, consumer and TMT stocks, one source said. The sources declined to be identified because the fundraising discussions are private. The most high-profile launches of multi-billion dollar hedge funds this year will come from former Millennium Management co-Chief Investment Officer Bobby Jain , opens new tab, and a spinoff of Capula Investment Management by its partner Nat Dean, one source said. Bloomberg previously reported their launch plans. "The hedge funds are managed by people who came from really good firms," said Leor Shapiro, a managing director at Jefferies (JEF.N) , opens new tab overseeing capital introductions. "We're seeing consistent demand." A strong pedigree is growing more important as industry consolidation has made it tougher for new funds to compete with incumbents for investor cash, a BNP Paribas survey of investors on Feb. 29 showed. Appetite for early stage launches has dropped slightly to 61% from 64% last year, it found. Hedge funds returned 7.7% on average in 2023, according to PivotalPath, in a volatile year marked by bank failures and high interest rates that depressed the bond market. High rates have driven investor demand for credit funds, according to surveys by Barclays (BARC.L) , opens new tab and BNP Paribas (BNPP.PA) , opens new tab prime brokers. Credit funds will also be among the launches this year. Thomas Einhorn and Roger Schmitz, former portfolio managers at roughly $4 billion Paloma Partners, are aiming to raise $500 million to invest in public credit, including some distressed opportunities, two sources said. Their launch of Parliament Holdings is expected in the second quarter. Brad Boyd, formerly at Oaktree Capital Management, will launch a California-based multi-sector fixed income hedge fund called Confido Capital, one source said. Representatives for Parliament, Tessellis, Perryridge Capital, Benchstone, Dean, Jain Global, Confido declined to comment. Spokespeople for Citadel, Lone Pine Capital, Oaktree Capital Management, Paloma Partners, Millennium Management, and Capula declined or did not immediately respond to requests for comment. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/business/finance/high-profile-hedge-fund-managers-line-up-launches-2024-2024-03-18/

2024-03-18 10:34

WARSAW, March 18 (Reuters) - Polish farmers blocked two border crossings with Germany on Monday, local police said, as protests against European Union environmental regulations and cheap imports sweep the bloc. Farmers in Poland and across the EU have been calling for changes to restrictions placed on them by the EU's Green Deal plan to tackle climate change, and for the re-imposition of customs duties on imports of agricultural products from Ukraine that were waived after Russia's invasion in 2022. The European Commission on Friday offered concessions to farmers as it proposed an easing of a series of rules on leaving land fallow or rotating crops. On Monday, farmers blocked the Swiecko and Gubinek border crossings with Germany. A local police spokesperson said that the blockades started on Sunday and were scheduled to continue until Wednesday. "Traffic in Swiecko and Gubinek is blocked, you cannot travel in either direction," said Marcin Maludy, a spokesperson for the police in nearby Gorzow Wielkopolski. Maludy said that the only possibility for trucks in the Lubusz region travelling to Germany was to go to Olszyn whereas cars could go through the remaining crossings in the region. Polish farmers are planning mass protests across the country on Wednesday, keeping up pressure on officials to act on their demands. They have a particular grievance because of increased competition from neighbouring non-EU Ukraine's farmers, who they accuse of flooding EU markets with cheap imports that leave them unable to compete. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/polish-farmers-block-two-border-crossings-with-germany-2024-03-18/