2023-12-12 17:37

NEW YORK, Dec 12 (Reuters) - Buy now, pay later company Affirm said it is teaming up with a major provider of retail-branded gift cards to let shoppers purchase digital gift cards for the holiday season and pay for them with installment payments spread over as many as 12 months. Affirm's partnership with privately held Blackhawk Network, one of the largest distributors of retailers' pre-paid gift cards, comes as Affirm and other buy now, pay later (BNPL) firms are soaring in popularity. U.S. shoppers spent $15.9 billion from October to December using BNPL, a 17.5% increase from last year, according to Adobe Analytics. Top categories for BNPL purchases are electronics, apparel, grocery and home furniture. BNPL loans allow customers to receive items within days of ordering them online. Shoppers can typically pay in four-installments that range from monthly to biweekly increments or pay within a 30-day period. San Francisco-based Affirm announced on Tuesday that shoppers can now buy gift cards - among the most popular purchases during the holiday season - from Nordstrom, REI and Bath & Body Works with Affirm. Shoppers buy the cards through Affirm.com or its app. They can use the gift cards online and in physical stores. Affirm shoppers can purchase gift cards for between $50 and $500, despite some of the retailers listing minimums of $25. Shoppers can choose four-installment payment plans for zero interest or they can opt for monthly payments that include interest rates between 0% and 36% based on credit and eligibility checks. Affirm said it has been testing its service for gift card purchases for a month. "We did have a goal of getting it tested and wrapped in time for holiday because the most popular days for gift card (purchases) are right before Christmas," Wayne Pommen, Affirm's Chief Revenue Officer, told Reuters. The gift cards essentially give Affirm a way to expand its BNPL service, which is typically marketed online, into physical retail stores. Affirm CEO Max Levchin in November told analysts that the company is expanding into other segments after being in an "e-commerce cage for a very long time." Affirm said shoppers' total charges are provided upfront and there are no late or hidden fees. Neither Affirm nor Blackhawk would say what fees they collect from retailers participating in the program. The company isn't the first BNPL brand to allow gift card purchases. Stockholm-based Klarna also lets shoppers purchase digital gift cards through its app. Blackhawk earns revenue when shoppers activate their gift cards and collects management, transaction and technology fees from its enterprise clients who want to be on its digital gift-card mall, according to filings with the U.S. Securities and Exchange Commission. (This story has been corrected to specify that gift card minimums are $50, in paragraph 6) https://www.reuters.com/markets/us/buy-now-pay-later-company-affirm-pushes-further-into-retail-gift-cards-2023-12-12/

2023-12-12 17:18

Dec 12 (Reuters) - The United States has seized digital currency worth about half a million dollars from an account registered to a Chinese man who featured in a Reuters investigation into crypto-investment fraud run from Southeast Asia. U.S. authorities said the scam that prompted the seizure involved a crypto-investment fraud known as pig butchering. In such schemes, fraudsters manipulate unsuspecting people they meet online, persuading them to invest in bogus crypto schemes. The U.S. Secret Service seized the crypto from an account in the name of Wang Yicheng in June, according to a document filed by U.S. authorities in federal court in Massachusetts. The crypto was worth about $500,000 at the time. Money initially stolen from a Massachusetts victim was traced to Wang’s account, the Nov. 21 filing said. Reuters, in an article published last month, identified Wang as a businessman who forged relationships with members of Thailand’s law-enforcement and political elite while serving as the vice president of a Bangkok-based Chinese trade group. The Nov. 23 article detailed how a crypto account in Wang’s name received more than $90 million in recent years, based on documents and transaction logs. Of that, at least $9.1 million came from a crypto wallet that U.S. blockchain analysis firm TRM Labs said was linked to pig-butchering scams, Reuters reported. The report highlighted the example of a California man whose family said he was scammed out of about $2.7 million. He sent money to crypto wallets that channeled funds into the account in Wang’s name, the reporting showed. The recent U.S. court filing cited another example, a resident of Cambridge, Massachusetts. He was allegedly cheated of about $478,000 worth of crypto, which was diverted into two crypto accounts, one of which was in Wang’s name. The details of the account given in the U.S. court filing – including who it was registered to, where it was held, the account number’s last four digits and the corresponding crypto wallet address – match the details of the Wang account highlighted in the Reuters report. U.S. authorities said the account in Wang’s name had received more than $90 million since it was opened in 2020, according to the filing, which was an affidavit by U.S. Secret Service Special Agent Heidi Robles. “This level of activity is indicative of an account controlled by a criminal organization for the purpose of laundering stolen funds,” Robles said in the filing. Wang did not respond to requests for comment. The head of the Thai police’s Cyber Crime Investigation Bureau declined to comment. The trade group Wang represented is called the Thai-Asia Economic Exchange Trade Association. In response to questions for this article, it said it abided by laws and regulations and did not support illegal activity. It said Wang’s business and personal affairs had “nothing to do with the trade association,” adding that Wang was no longer part of the group and it was no longer in contact with him. The Thai-Asia group previously told Reuters in a Dec. 4 letter that Wang left its board more than three months ago. That was due to Wang’s failure to pay the trade group’s new membership dues as well as “personal reasons,” on which the letter didn’t elaborate. The group said background checks it conducted on Wang when he originally applied for membership and after Reuters’ Nov. 23 report found no criminal record. The U.S. court filing was part of a civil forfeiture action, in which the government seeks court approval to take possession of seized assets it alleges are linked to a crime. The United States has not filed a criminal action related to the case, the U.S. Attorney’s Office in Massachusetts said at the time of its November filing. Acting U.S. Attorney Joshua Levy in Massachusetts told Reuters that his office has been using civil forfeitures to recover funds stolen via crypto fraud schemes. “Despite the seemingly elusive nature of cryptocurrency transactions, law enforcement is adapting and evolving,” he said in a statement. https://www.reuters.com/technology/cybersecurity/us-seizes-crypto-linked-southeast-asian-investment-scam-2023-12-12/

2023-12-12 16:08

Dec 12 (Reuters) - Moderna (MRNA.O) said its Chief Commercial Officer Arpa Garay has stepped down from the role and CEO Stephane Bancel will look over sales and marketing, sending the shares of the vaccine maker down 5% on Tuesday. Garay, who was in the position for less than two years, will remain an employee through June 2024, the company said. Her exit from the role comes at a time when the company, which is looking to break even in 2026, is ramping up spending on research and development as weak sales of COVID vaccine weigh on stock performance. The company had last month said it would be able to meet just the lower end of its $6 billion to $8 billion sales forecast for 2023. In contrast, Pfizer (PFE.N) expects annual sales from COVID shot to be about $11.5 billion. CEO Bancel will now directly oversee the company's efforts to drive sales of the COVID shot and its preparation to roll out the vaccine against respiratory syncytial virus (RSV) next year. Moderna expects $4 billion in revenue in 2024 from the sale of COVID and RSV vaccines. The company said president Stephen Hoge will be responsible for its pipeline commercial strategy and medical affairs. This follows the departure of Chief Medical Officer Paul Burton earlier this year. https://www.reuters.com/business/healthcare-pharmaceuticals/moderna-chief-commercial-officer-steps-down-2023-12-12/

2023-12-12 15:18

JOHANNESBURG, Dec 12 (Reuters) - The South African rand recovered in early trade on Tuesday against the dollar as global markets braced for consumer inflation data out of the U.S. that could set the tone for the Federal Reserve's future interest rate path. At 0635 GMT, the rand traded at 19.0025 against the dollar , about 0.4% stronger than its previous close. The dollar last traded around 0.18% weaker against a basket of global currencies. The rand has made a slight recovery after being on the backfoot against the dollar on Monday on expectations the Fed might not cut interest rates early next year. "With hopes of an early rate cut by the Fed receding, traders will be watching today's inflation data and Powell's post-FOMC press statement very closely tomorrow," said Andre Cilliers, currency strategist at TreasuryONE. The U.S. Federal Reserve is expected to hold rates on Wednesday. The risk-sensitive rand often takes cues from global movers like U.S. monetary policy in addition to local drivers. Locally, Statistics South Africa will publish the country's October mining data (ZAMNG=ECI) and manufacturing figures (ZAMAN=ECI). South Africa's benchmark 2030 government bond was stronger in early deals, with the yield down 3.5 basis points to 10.100%. https://www.reuters.com/markets/currencies/south-african-rand-recovers-against-dollar-us-inflation-data-looms-2023-12-12/

2023-12-12 14:56

Dec 12 (Reuters) - U.S. Treasury Secretary Janet Yellen said on Tuesday she believes inflation is coming down "meaningfully," and with inflation expectations under control it should not be particularly difficult to finish the "last mile" of the job of easing price pressures. "I see no reason, on the path that we're currently on, why inflation shouldn't gradually decline to levels consistent" with the Federal Reserve's 2% target, Yellen said at the Wall Street Journal's CEO Council Summit. The economy continues to operate a "roughly full employment," she said. https://www.reuters.com/markets/us/yellen-says-inflation-coming-down-meaningfully-2023-12-12/

2023-12-12 14:02

NEW YORK, Dec 12 (Reuters) - U.S. consumer prices unexpectedly rose in November while underlying inflation pushed higher, offering more evidence that the Federal Reserve was unlikely to pivot to interest rate cuts early next year. The consumer price index edged up 0.1% last month after being unchanged in October, the Labor Department's Bureau of Labor Statistics said on Tuesday. In the 12 months through November, the CPI increased 3.1% after rising 3.2% in October. Economists polled by Reuters had forecast the CPI would be unchanged on the month and gain 3.1% on a year-on-year basis. read more MARKET REACTION: STOCKS: U.S. stock index futures easing slightly and were last off 0.08% BONDS: U.S. Treasury yields dipped right after the data reversed, with 2-year note last at 4.741%, and the 10-year note at 4.233%FOREX: The dollar index pared a loss and was off 0.08% COMMENTS: STUART COLE, HEAD MACRO ECONOMIST, EQUITI CAPITAL, LONDON "U.S. CPI numbers a little hotter than expected for November, with both the headline and core monthly rates posting 0.1% gains on last month’s reading. The numbers very much underline the somewhat bumpy road CPI is going to take to get back to target, the numbers very much reinforcing what we have already heard from various officials, namely that the last 2% reduction in CPI to target was going to be the hardest." "Although the Fed has probably done enough tightening in this cycle, these figures, and particularly when viewed in light of last week’s employment report, very much lay the ground for this week’s FOMC meeting to deliver the now familiar message that a further rate rise remains on the table should it be needed." "For Powell, a core CPI rate of 4% remains too high and in that respect today’s figures do not present anything that is necessarily a cause for celebration. The FOMC will want to be certain that pricing pressures are on a sustainable downwards path before contemplating any relaxation in policy and will likely be keen tomorrow to push back against growing market expectations of a near term policy easing." "The market will read into the report what it wants to read and its reaction so far suggests that overall it is being seen as a dovish set of figures. But if you discount the natural tendency for markets to over-react, on balance the latest employment and inflation numbers probably point to a first cut coming in Q2 rather than Q1." CHRIS ZACCARELLI, CHIEF INVESTMENT OFFICER, INDEPENDENT ADVISOR ALLIANCE, CHARLOTTE, NC “The data this morning was unsurprising and even though tomorrow’s Fed rate decision was never in doubt, there is nothing in this report that should stop the Fed from staying on hold well into next year and potentially beginning rate cuts in the second half of 2024. . . . To the extent that the market is expecting rate cuts in order to rally, those investors may be disappointed for some time to come, but we don’t believe the market is rallying in anticipation of cuts; we believe the market is rallying because the economy is expanding at a rapid pace, unemployment is low, consumer spending is high, and the Fed is on hold.” ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH, BOSTON "The very much anticipated CPI report came out largely in line with expectations. So what's the most important to us is what's the most important to the Fed. The CPI is very much in line with expectations." "I don't think that changes anything that happens tomorrow at the FOMC meeting, and I certainly think this is something that the markets should be fine with today." BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN“Inflation is coasting towards the Fed’s target, but not fast enough for the Fed to talk about rate cuts. Powell will probably say that the job isn’t done yet, but we’re at least closer to the end than we are to the beginning.” PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK “The numbers are going in the right direction. Today’s inflation data is not likely to change the Fed expectations of a rate hold this month or the fact that they’re likely raising rates.” “I’m expecting a dovish dot plot, but the statement will be consistent; the fight against inflation has not been won and the Fed will continue to move as necessary.” “It doesn’t change the fact that the market is pricing in a rate cut by June. But if these numbers continue to come down this gradually, the market could be wrong and the first interest rate cut will come later. I think it will come in the third quarter.” “Yes, inflation remains elevated. It’s coming down at a snail’s pace, but it’s heading in the right direction.” https://www.reuters.com/markets/us/view-nov-us-cpi-uptick-not-fed-incentive-early-ease-2023-12-12/