2024-05-16 09:48

NEW DELHI, May 16 (Reuters) - India's market watchdog has recommended that several regulators oversee trade in cryptocurrencies, documents show, the strongest signal to date that at least some authorities in the country are open to allowing the use of private virtual assets. The position of the Securities and Exchange Board of India (SEBI) contrasts with that of the Reserve Bank of India (RBI), which maintains that private digital currencies represent a macroeconomic risk, separate documents show. Both sets of documents, which have been seen by Reuters, have been submitted to a government panel which is tasked with formulating policy for the finance ministry to consider. SEBI's stance has not previously been reported. India has taken a tough stance against cryptocurrencies since 2018, when the central bank prohibited lenders and other financial intermediaries from dealing with crypto users or exchanges though the move was later struck down by the Supreme Court. In 2021, the government prepared a bill that would have banned private cryptocurrencies though it has not been introduced. Last year, when it was president of the G20, India called for a global framework to regulate such assets. The RBI remains in favour of a ban on stablecoins, according to a person with direct knowledge of the panel's discussions. The person, who was not authorised to speak to media and declined to be identified, added that the panel plans to firm up its report as early as June. Stablecoins are cryptocurrencies designed to maintain a constant exchange rate with fiat currencies so that they are less vulnerable to wild volatility. In its submissions to the government panel, however, SEBI recommended different regulators should oversee activities linked to cryptocurrencies that fall under their domain and that a single unified regulator for digital assets should be avoided. SEBI said it could monitor cryptocurrencies that take the form of securities as well as new offerings called Initial Coin Offerings (ICO). It could also issue licenses for equity market-related products, said the person aware of the panel's discussions. This would be similar to the U.S., where tokens that are in the nature of securities and crypto exchanges fall under the purview of the Securities and Exchange Commission. Crypto assets that are backed by fiat currencies could be regulated by the Reserve Bank of India, it said. The Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA) should regulate insurance and pension-related virtual assets, the documents showed. It also recommended that grievances of investors trading in cryptocurrencies should be resolved under India's Consumer Protection Act. SEBI and the RBI did not respond to requests for comment. The finance ministry, IRDAI and PFRDA also did not respond to requests for comment. FISCAL POLICY RISKS In its submissions, the RBI said cryptocurrencies could lead to tax evasion and that decentralised peer to peer (P2P) activities in cryptocurrencies would rely on voluntary compliance - both representing risks to fiscal stability. It also said cryptocurrencies may lead to loss of "seigniorage" income, which is the profit earned by a central bank from money creation. After the RBI's 2018 orders were challenged by the industry and struck down by the Supreme Court, the central bank asked financial institutions to strictly comply with tough money laundering and foreign exchange rules, effectively keeping cryptocurrencies out of India's formal financial system. Even so, trade flourished and in 2022 the government introduced a tax on crypto transactions in India to discourage such trading. It followed that up by asking all exchanges to register locally before facilitating crypto transactions from within the country. According to a PwC report in December, 31 countries have regulations in place that allow for trade in cryptocurrencies. Sign up here. https://www.reuters.com/world/india/indias-sebi-open-oversight-crypto-trade-contrast-reserve-bank-2024-05-16/

2024-05-16 09:21

May 15 (Reuters) - Netflix (NFLX.O) New Tab, opens new tab said on Wednesday its ad-supported tier has reached 40 million global monthly active users, from 5 million a year earlier, a sign that its push to attract new users with the cheaper plan is paying off. The jump comes at a time when streaming companies are facing stiff competition and introducing bundles with their rivals to retain subscribers. Netflix, which launched the ad-supported plan in November 2022, said that 40% of all sign-ups come from those plans in the countries where they are available. In the fourth quarter, the majority of gross subscriber additions for the streaming industry came from ad-supported plans for the first time, data from research firm Antenna showed earlier this week. Netflix also said it will launch an in-house advertising technology platform by the end of 2025, in a bid to offer clients new ways to buy ads and better engage with users. The company said it will team up with Trade Desk (TTD.O) New Tab, opens new tab , Google Display & Video 360, and ad-tech firm Magnite (MGNI.O) New Tab, opens new tab who will join Microsoft (MSFT.O) New Tab, opens new tab to accelerate automated ad buying. Netflix's ad-tier plan costs $6.99 per month, compared with monthly plans of $9.99 from Warner Bros Discovery's (WBD.O) New Tab, opens new tab streaming service Max and $7.99 for Walt Disney's (DIS.N) New Tab, opens new tab Disney+. Last month, Comcast-owned (CMCSA.O) New Tab, opens new tab streaming service Peacock said it would raise prices of its plans, that would take its ad-supported plan to $7.99 per month. Earlier on Wednesday, Netflix said it would stream two National Football League games on Christmas Day this year, doubling down on efforts to add more live programming to its streaming service. Sign up here. https://www.reuters.com/technology/netflix-hits-40-million-users-ad-supported-plan-2024-05-15/

2024-05-16 08:16

FRANKFURT, May 16 (Reuters) - Commercial property has become the weak link of the euro zone's financial system, with losses there threatening to hurt banks, insurers and funds, a European Central Bank report showed on Thursday. Commercial real estate (CRE) companies have been hit by a triple whammy of higher borrowing costs, falling demand for office space in the post-pandemic age, and more expensive building materials. Their problems are now starting to spread to their backers in the form of rising default rates on loans and looming losses on investments, the ECB said in its twice yearly Financial Stability Review (FSR). The central bank for the 20 countries that share the euro said commercial property prices were down 8.7% year-on-year at the end of 2023 and may have further to fall. "Prices could decline further, given structurally lower demand for some CRE assets post-pandemic," the ECB said. "The outlook for the office market is particularly bleak." The sector was a sour note in an otherwise more positive FSR, in which the ECB noted the risk of a recession had declined despite lingering geopolitical risks. The central bank said around half of the euro zone's large real estate companies were making losses and their ability to make interest payments from earnings had declined substantially. While commercial property only accounted for a small portion of all loans, the ECB said "a handful of banks" had already suffered "a significant deterioration in their CRE portfolios", particularly in the United States. Falling property valuations were likely to force banks to raise provisions and "may, in some cases, lead to erosion of capital", the ECB added. In a similar vein, the ECB noted the reported net asset value of Real Estate Investment Funds (REIF) had remained stable despite the significant drop in property prices, suggesting losses had yet to be booked. "Such losses might trigger redemption requests for REIFs, putting stress on their cash buffers," the ECB said. Insurers, in turn, may face losses on their investments in REIFs, which they had boosted during the previous era of low interest rates and booming property markets. "Consequently, interconnectedness in commercial real estate exposures across the financial system warrants continued monitoring," the ECB said. Sign up here. https://www.reuters.com/markets/europe/commercial-property-is-weak-link-euro-zone-finance-ecb-says-2024-05-16/

2024-05-16 08:01

NEW DELHI, May 16 (Reuters) - India's steel industry, already reeling from cheaper imports, is worried about a surge in shipments from China after the United States imposed tariffs on Chinese steel, industry executives and analysts said. U.S. President Joe Biden on Tuesday unveiled steep tariff increases on an array of Chinese imports including steel and aluminium. "India is already under grave threat of import because all major steel consuming economies are shutting their doors on these steel producing countries," said Alok Sahay, secretary general at Indian Steel Association (ISA). "We are highly vulnerable to surging and predatory import," Sahay said. ISA counts the country's top steelmakers, such as JSW Steel Ltd (JSTL.NS) New Tab, opens new tab and Tata Steel Ltd (TISC.NS) New Tab, opens new tab, among its members. Spooked by cheaper Chinese steel coming into India over the past two years, Indian steel producers have often complained about unbridled imports from Beijing. Weak steel demand at home has encouraged China, the world's biggest producer of the alloy, to offload its surplus stocks by offering competitive rates to Indian buyers, hurting Indian producers. Steelmakers have lobbied India's government to intervene to curb supplies from Beijing. The government has resisted calls for curbs on imports, citing strong local steel demand, stoked by a spurt in economic activity. India's steel consumption rose 13.4% to 136 million metric tons during the fiscal year to March 2024. India turned a net importer of finished steel during the 2023/24 fiscal year. In 2023/24, China was the top steel exporter to India and its shipments reached 2.7 million metric tons, nearly double from a year earlier, according to provisional government data. "Safeguards are essential, but nothing can happen till the new government is in place," said a senior executive at a major steel firm. He didn't wish to be named in line with his company's policy. India began voting on April 19 in a seven-phase election, with ballots set to be counted on June 4. "If domestic prices and margins drop sharply due to an import surge, we expect the government to introduce tariff-related measures," said Akash Gupta, a director at Fitch Ratings. Sign up here. https://www.reuters.com/markets/commodities/indian-steel-mills-fear-surge-chinese-imports-after-us-tariffs-2024-05-16/

2024-05-16 07:49

TOKYO, May 16 (Reuters) - Japan's top power utility JERA said on Thursday it plans to invest 5 trillion yen ($32.4 billion) over the coming decade into renewable energy and new fuels such as hydrogen and ammonia, as well as liquefied natural gas (LNG). By fiscal year 2035, Japan's top LNG buyer is targeting over 35 million metric tons in annual LNG transaction volumes, keeping the current levels. JERA also wants to boost renewable energy capacity to 20 gigawatts from 5 GW now and handling volume of hydrogen and ammonia to 7 million tons from none now. "Without a certain LNG handling scale, it will be difficult to have a global presence that can constantly bring flexible supply to Japan," Chairman Yukio Kani told reporters. JERA wants to secure stable LNG supply for Japan and elsewhere in Asia and provide solutions to address fluctuations in demand for the fuel while maintaining market share, Kani said. Each of the three focus areas would receive 1 trillion to 2 trillion yen in investment over the decade, JERA said, with carbon dioxide emissions falling by at least 60% from 2013. JERA, an unlisted company co-owned by Tokyo Electric Power (9501.T) New Tab, opens new tab and Chubu Electric Power (9502.T) New Tab, opens new tab said net profit should reach 350 billion yen by fiscal 2035, up from the expected 200 billion yen profit in fiscal 2025. Hisahide Okuda, JERA's president, told the same briefing that the company continued to weigh options for a capital increase, which included its current shareholders, third party allotment and initial public offering. He also said JERA may revise power sources development plans to prepare for potential rise in electricity demand amid expansion of data centres, AI and the return of the semiconductor industry to Japan. At the same time, JERA plans to phase out inefficient coal-fired power plants by fiscal 2030 and convert all other coal-fired power generation to ammonia by the 2040s to eliminate coal completely, it said. JERA is conducting a demonstration of co-firing 20% of ammonia with coal at its Hekinan thermal power station in central Japan. Okuda said the result so far has been good. "We want to build a clean energy platform by combining zero emissions thermal power with renewable energy, and expand it to Asia," Okuda said. "But for now, expanding the use of LNG, instead of coal, in elsewhere in Asia is key to promoting a low-carbon society," he said. ($1 = 154.2600 yen) Sign up here. https://www.reuters.com/sustainability/japans-jera-invest-32-bln-lng-renewables-new-fuels-over-decade-2024-05-16/

2024-05-16 07:44

HYDERABAD, May 16 (Reuters) - Britain's food watchdog has applied extra control measures on all spice imports from India, it said on Wednesday, becoming the first to ramp up scrutiny of all Indian spices after contamination allegations against two brands sparked concerns among global food regulators. Hong Kong last month suspended sales of three spice blends produced by MDH and one by Everest, saying they contained high levels of a cancer-causing pesticide ethylene oxide. Singapore also ordered a recall of the Everest mix, and New Zealand, the United States, India and Australia have since said they are looking into issues related to the two brands. MDH and Everest - two of India's most popular brands - have said their products are safe for consumption. In the most stringent crackdown so far impacting all Indian spices, the UK's Food Standards Agency (FSA) said that in light of the concerns it has "applied extra control measures for pesticide residues in spices from India which includes ethylene oxide". The agency did not elaborate on the exact steps it is taking. "The use of ethylene oxide is not allowed here and maximum residue levels are in place for herbs and spices," James Cooper, Deputy Director of Food Policy at the FSA, said in a statement to Reuters. "If there is any unsafe food or food on the market, the FSA will take rapid action to ensure consumers are protected." India's Spices Board, which regulates exports, did not immediately respond to a request for comment. India is the biggest exporter, consumer and producer of spices in the world. In 2022 Britain imported $128 million worth of spices, with India accounting for almost $23 million, data from the Observatory of Economic Complexity website shows. MDH and Everest export their products to many regions including the U.S., Europe, South East Asia, Middle East and Australia. Sign up here. https://www.reuters.com/world/india/uk-tightens-scrutiny-all-indian-spice-imports-amid-contamination-allegations-2024-05-16/