2024-03-14 19:01

LONDON, March 14 (Reuters) - An Australian computer scientist who claims he invented bitcoin is not "Satoshi Nakamoto", the pseudonymous inventor of the cryptocurrency, a judge at London's High Court ruled on Thursday. Craig Wright has long claimed to have been the author of a 2008 white paper, the foundational text of bitcoin, published under the pseudonym. The Crypto Open Patent Alliance (COPA) took Wright to court to stop him suing bitcoin developers, asking for a ruling that Wright was not Satoshi. Judge James Mellor said at the end of closing arguments on Thursday that the evidence Wright was not Satoshi was "overwhelming". "Dr Wright is not the author of the Bitcoin white paper," Mellor said. "Dr Wright is not the person who adopted or operated under the pseudonym Satoshi Nakamoto in the period 2008 to 2011." COPA – whose members include Twitter founder Jack Dorsey's payments firm Block (SQ.N) , opens new tab – said the ruling was "a win for developers, for the entire open source community and for the truth". "For over eight years, Dr Wright and his financial backers have lied about his identity as Satoshi Nakamoto and used that lie to bully and intimidate developers in the bitcoin community," a COPA spokesperson said in a statement. "That ends today with the court's ruling that Craig Wright is not Satoshi Nakamoto." A spokesperson for Wright said he was "not prepared to speak to anyone at this time". ALLEGED PERJURY COPA had accused Wright of repeatedly forging documents to substantiate his claim, including during the trial itself, which Wright denied when he gave evidence. Its lawyer, Jonathan Hough, said at the start of the trial in February that Wright's claim was "a brazen lie, an elaborate false narrative supported by forgery on an industrial scale". Hough said that "there are elements of Dr Wright's conduct that stray into farce", citing his alleged use of ChatGPT to produce forgeries. But he added: "Dr Wright's conduct is also deadly serious. On the basis of his dishonest claim to be Satoshi, he has pursued claims he puts at hundreds of billions of dollars, including against numerous private individuals." Wright's lawyers, however, argued in court filings that he had produced "clear evidence demonstrating his authorship of the white paper and creation of bitcoin". In their closing arguments, COPA's lawyers asked Mellor to refer the case to Britain's Crown Prosecution Service "for consideration of prosecution for the offences of perjury and perverting the course of justice". Mellor did not indicate whether or not he would do so. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/uk/self-proclaimed-bitcoin-inventor-did-not-invent-bitcoin-uk-judge-rules-2024-03-14/

2024-03-14 17:39

Canadian dollar weakens 0.4% against the greenback Touches its weakest since March 6 at 1.3534 Factory sales increase less than expected 10-year yield rises to a two-week high TORONTO, March 14 (Reuters) - The Canadian dollar weakened to an eight-day low against its U.S. counterpart on Thursday as stronger-than-expected U.S. inflation data spooked investors counting on the Federal Reserve to begin cutting interest rates this year. Bond yields climbed and Wall Street's major indexes fell as U.S. data showed retail sales rebounding less than expected in February as well as producer prices rising 0.6%. It follows U.S. consumer price data on Tuesday that was also heated. "These hotter inflation readings mean that there is a lingering risk that the Fed won't cut this year and that's causing some jitters across markets," said Simon Harvey, head of FX analysis for Monex Europe and Monex Canada. "For CAD specifically, higher yields, lower retail sales and lower equities is a negative mix." Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment. The Canadian dollar was trading 0.4% lower at 1.3525 per U.S. dollar, or 73.94 U.S. cents, after touching its weakest intraday level since March 6 at 1.3534. Canadian factory sales grew by 0.2% in January from December on higher sales of motor vehicles, as well as chemical products, but falling short of estimates for a 0.4% increase. The price of oil was a bright spot for the loonie. It increased 2.4% to $81.60 a barrel as the International Energy Agency's predicted a tighter market in 2024 and raised its view on oil demand growth this year. Canadian bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 10.7 basis points at 3.530% after earlier touching its highest level since Feb. 29 at 3.545%. 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/canadian-dollar-hits-8-day-low-fed-rate-cut-jitters-2024-03-14/

2024-03-14 17:33

Retail sales increase 0.6% in February Core retail sales unchanged, January data revised up Producer prices rise 0.6%; jump 1.6% year-on-year Weekly jobless claims fall 1,000 to 209,000 WASHINGTON, March 14 (Reuters) - U.S. retail sales rebounded less than expected in February, suggesting a slowdown in consumer spending in the first quarter amid rising inflation and high borrowing costs. The signs of slowing economic activity are, however, unlikely to spur the Federal Reserve to start cutting interest rates before June as other data on Thursday showed a larger-than-expected increase in producer prices last month. The labor market also remains fairly tight. Fewer Americans applied for unemployment benefits last week and annual revisions to the weekly claims data showed laid-off workers were quickly finding new work and not spending as long a period of time on jobless benefits as had been previously thought. "When the Fed is contemplating a series of rate cuts and is confronted by suddenly slower economic growth and suddenly brisker inflation, they will respond to the new news on the inflation side every time," said Chris Low, chief economist at FHN Financial. "After all, this is not the first time in the past couple of years consumers have paused spending for a couple of months to catch their breath." Retail sales rose 0.6% last month, the Commerce Department's Census Bureau said. Data for January was revised lower to show sales tumbling 1.1% instead the previously reported 0.8%. Sales in December were also downgraded. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would rise 0.8% in February. They increased 1.5% on a year-on-year basis in February. Sales last month were boosted by a 1.6% rebound in receipts at motor vehicles and parts dealers. Sales at gasoline stations increased 0.9%, reflecting higher prices at the pump. Receipts at electronics and appliance outlets surged 1.5%. Building material and garden equipment store sales rebounded 2.2%. But online sales dipped 0.1%. There were also decreases in sales at clothing, health and personal care stores. Furniture store sales decreased 1.1%. Sales at sporting goods, hobby, musical instrument and book stores were unchanged. Sales at food services and drinking places, the only services component in the report, rebounded 0.4% after dropping 1.0% in January. Economists view dining out as a key indicator of household finances. Households are increasingly focusing on essentials and cutting back on discretionary spending. "There's ultimately more competition for consumers' dollars today while still-high prices for frequent purchases like food and gasoline may be diverting discretionary funds, just as higher interest payments may also be somewhat crowding out consumption," said Tim Quinlan, a senior economist at Wells Fargo. Retail sales excluding automobiles, gasoline, building materials and food services were unchanged in February. This so-called core retail sales measure corresponds most closely with the consumer spending component of gross domestic product. Core sales for January were revised to show them decreasing 0.3% instead of the previously reported 0.4%. Core sales in December were revised lower. The data and an unexpectedly flat reading in business inventories in January prompted the Atlanta Fed to trim its first-quarter GDP growth estimate to a 2.3% annualized rate from a 2.5% pace. The economy grew at a 3.2% rate in the fourth quarter, fueled by consumer spending. Stocks on Wall Street were trading lower. The dollar rose against a basket of currencies. U.S. Treasury prices fell. TIGHT LABOR MARKET A separate report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 209,000 for the week ended March 9. Economists had forecast 218,000 claims for the latest week. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 17,000 to 1.811 million during the week ending March 2. The government revised the data for both initial and so-called continuing claims from 2019 through 2023. It also implemented new models to seasonally adjust both initial claims and continued claims this year and revised seasonal factors for both series from 2019 through 2023. The level of continuing claims over the last year was revised sharply lower. Data for January and February were also downgraded, aligning with strong payrolls growth that period. "The revised data for continued claims are consistent with a job market that is showing some signs of loosening but is still relatively strong," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics. The U.S. central bank has raised its policy rate by 525 basis points to the current 5.25%-5.50% range since March 2022, and is expected to start lowering borrowing costs by June. Another report from the Labor Department showed the producer price , opens new tab index for final demand rose 0.6% in February after advancing 0.3% in January. Economists had forecast the PPI would climb 0.3%. A 1.2% jump in goods prices accounted for nearly two-thirds of the increase in the PPI. Wholesale gasoline prices rose 6.8%. Food prices were up 1.0%. In the 12 months through February, the PPI shot up 1.6% after advancing 1.0% in January. The report followed news on Tuesday that consumer prices increased strongly for a second straight month in February. Excluding food and energy, goods prices rose 0.3%, matching January's gain. This suggests that goods deflation, the major driver of lower inflation, was drawing to an end and services would need to pick up the slack in easing price pressures. Services gained 0.3% in February after rising 0.5% in the prior month. A 3.8% increase in the cost of hotel and motel rooms accounted for a quarter of the rise in services prices. There were also increases in the costs of outpatient care and airline tickets. Portfolio management fees gained 0.2% after accelerating by 5.9% in January. These are among the components that go into the calculation of the personal consumption expenditures (PCE) price indexes, the inflation measures tracked by the Fed for its 2% target. Based on the CPI and PPI data, economists estimated that the core PCE price index increased 0.3% in February after gaining 0.4% in January. Core inflation is forecast to rise 2.8% in February, which would match January's gain. "The Fed will start its cutting cycle in June," said Stephen Juneau, an economist at Bank of America Securities. "However, it will need to see more improvement in the upcoming inflation data to have enough confidence to begin to ease." 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/us-retail-sales-rebound-february-weekly-jobless-claims-fall-2024-03-14/

2024-03-14 16:00

March 14 (Reuters) - New York Community Bancorp (NYCB.N) , opens new tab has sold some loans for gains and was working to integrate collapsed lender, Signature Bank, into its financial reporting process, it said in its annual report on Thursday. Its first quarter will include the sale of consumer loans worth $899 million on March 13 and a commercial co-operative loan in late February as the lender works to cut exposure to the beleaguered commercial real estate (CRE) sector. Several Wall Street analysts have flagged concerns that the turnaround could take a long time as profit remains under pressure from its efforts to boost reserves for potential bad loans. NYCB had earlier this month said it was getting interest from non-bank bidders for some of its loans and would outline a new business plan in April while once again cutting its dividend and disclosing a 7% drop in deposits. The lender also named Joseph Otting, former Comptroller of the Currency in the Trump administration, as CEO as part of a $1 billion capital injection from a group of investors that included former Treasury Secretary Steven Mnuchin. The bank's troubles began late in January when it reported a surprise loss and slashed its dividend. It again came under pressure toward the end of February after flagging "material weakness" in internal controls and revised its loss to more than 10 times of what it had earlier disclosed. Shares of NYCB reversed course to trade 3% lower on Thursday after the lender filed its annual report. They have lost about 64% this year, with analysts expecting trading to remain 'range bound' until NYCB lays down a concrete turnaround plan. NYCB has taken several steps to calm investor worries over its stability, including shares purchases by top executives and shuffling its management. It is now subject to stricter capital and liquidity norms as its balance sheet exceeds the $100 billion regulatory threshold due to the acquisition of Flagstar and purchase of some assets of failed Signature Bank. CREDIT RISKS NYCB said its CRE loans are secured by income-producing properties such as office buildings, retail centers, mixed-use buildings and multi-tenanted light industrial properties. "We may incur future losses on commercial real estate loans due to declines in occupancy rates and rental rates in office buildings, which could occur as a result of less need for office space due to more people working from home or other factors," it said in the filing. As of Dec. 31, $3.4 billion, or 32.1% of the bank's CRE loan portfolio, was secured by office buildings. The lender's multi-family portfolio, however, includes properties subject to rent control regulations, which limit landlords' freedom to raise rents when interest rates are high. NYCB said 44%, or $37.3 billion of its total loans, consisted of multi-family loans as of Dec. 31. This was down slightly compared with $38.1 billion a year ago. The bank also estimated a rise in the special assessment fees by the Federal Deposit Insurance Corporation to cover a hole in the deposit insurance fund that was drained in the regional banking turmoil of March 2023, but said it was not expected to be material. 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/nycb-files-annual-report-with-sec-after-missing-deadline-2024-03-14/

2024-03-14 15:05

LONDON, March 14 (Reuters) - Wall Street's move to halve the time it takes to complete a stock trade will create a "systemic risk" in Europe unless market participants get more time to line up dollars for stock purchases, Europe's asset management industry said on Thursday. U.S. stock markets, along with those in Canada and Mexico, will require share trades to be settled within one business day (T+1) from the end of May, instead of two at present, which is the norm in Europe. The aim of the U.S. move is to reduce risk. European fund managers' group EFAMA said central banks and regulators should force foreign exchange clearer CLS to give European users more time to complete currency transactions to pay for U.S. shares under the new T+1 system. CLS is the largest multi-currency settlement system for FX trades globally. "This urgency is further compounded by the fact that within days of the US go-live, major indices like MSCI World are set to rebalance," EFAMA said in a statement , opens new tab, referring to reviews of a stock index benchmark, which means asset managers often need to sell certain shares and buy others. EFAMA said a survey of member firms, which manage 28.5 trillion euros ($31.06 trillion) in assets, found that under the new U.S. T+1 settlement system 40% of asset managers' daily FX trades would have to settle outside the safety of the CLS multi-currency platform. "On a regular trading day, this could amount to $50-70 billion, whereas in volatile markets this figure could be in the hundreds of billions," EFAMA said. "This is of systemic importance," EFAMA said, adding that the European Central Bank, as well as U.S. regulators and the Federal Reserve should require CLS to extend its "cut-off" for completing a currency transaction. Increased FX settlement risk carries systemic implications, EFAMA said, citing the collapse of German bank Herstatt in 1974, which caused a major chain reaction across the world as it left large FX trades unfinished. CLS said in January it wanted first to see the effect of the go-live in T+1 in May before considering whether its cut-off needed changing. Some investment managers are looking to change the currency their funds do business in to the U.S. dollar to avoid being unable to settle U.S. trades on time as late trades are penalised. ($1 = 0.9175 euros) 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/faster-us-stock-settlement-poses-systemic-risk-europe-asset-managers-say-2024-03-14/

2024-03-14 14:51

WASHINGTON, March 14 (Reuters) - U.S. business inventories were unexpectedly unchanged in January as increases in stocks at retailers were offset by declines at manufacturers and wholesalers. The unchanged reading in business inventories reported by the Commerce Department's Census Bureau on Thursday followed a 0.3% increase in December. Economists polled by Reuters had expected inventories, a key component of gross domestic product, to rise 0.2%. Inventories increased 0.4% year-on-year in January. Private inventory investment subtracted 0.3 percentage point from GDP growth last quarter after providing a large boost in the third quarter. The economy grew at a 3.2% annualized rate in the October-December quarter. Growth estimates for the first quarter are converging around a 2.0% pace. Retail inventories increased 0.4% in January, instead of the 0.5% estimated in an advance report published last month. They advanced 0.6% in December. Motor vehicle inventories climbed 0.8% as previously estimated. They accelerated 1.1% in December. Retail inventories excluding autos, which go into the calculation of GDP, increased 0.3% as reported last month. They gained 0.4% in December. Wholesale inventories dropped 0.3% in January, while stocks at manufacturers dipped 0.1%. Business sales declined 1.3% in January after being unchanged in December. At January' sales pace, it would take 1.39 months for businesses to clear shelves, up from 1.38 months in December. 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/us-business-inventories-unchanged-january-2024-03-14/