Daily News for 27 February 2024
27 February 2024
RBNZ Seen Holding Rates Steady While Retaining Threat to Hike
New Zealand’s central bank will probably keep interest rates on hold this week but retain the threat of a hike as inflation proves difficult to tame, economists said.
The Reserve Bank’s Monetary Policy Committee will hold the Official Cash Rate at 5.5% Wednesday in Wellington, according to 22 of 24 economists in a Bloomberg survey. Two forecasters — ANZ Bank and TD Securities — predict an increase to 5.75%.
“We are firmly of the view that recent data shows monetary policy is having the desired effect,” said Kim Mundy, senior economist at ASB Bank in Auckland. “But we acknowledge there are still some pockets of sticky inflation in the economy.” Policymakers around the world have been pushing back against bets that rate cuts are imminent, saying they want to be sure price pressures are contained. The RBNZ has gone a step further, flagging the risk of further tightening. New Zealand’s inflation rate of 4.7% remains well above the 1-3% target band and higher than many of its peers.
27 February 2024
Bitcoin Spot ETFs Are Starting to See Slowing Investor Interest
Interest in the much anticipated spot Bitcoin ETFs appears to be cooling, with Wednesday marking the group’s lowest single-day of investor gross inflows since trading began on Jan. 11.
The nine new funds received about $270 million in inflows yesterday, according to a report from JPMorgan Chase & Co. Once outflows from Grayscale Investment’s spot Bitcoin ETF are taken into account, overall net net outflows were about $153 million on Wednesday, It’s the third consecutive day of net outflows for the 10 funds. Outflows have come exclusively from GBTC, which converted from a trust following the US Securities and Exchange Commission’s approval of the investment vehicle.
JPMorgan called the group’s flow performance “disappointing,” citing it as a reason behind their downgrading earlier this week of cryptocurrency exchange Coinbase Global Inc., according to the analyst report Thursday.
27 February 2024
Argentine Province Hires Advisers as It Struggles to Pay Bonds
Argentina’s La Rioja province has hired advisers to negotiate with bondholders as it’s facing “unprecedented economic challenges” to make principal and coupon payments on notes maturing in 2028.
The province in northern Argentina hasn’t received its co-participation funds from the federal government, making its revenue insufficient to cover expenditures related to essential services and programs, officials said in a statement Monday. “These factors have significantly limited the province’s ability to honor its financial commitments, including the bonds,” they said in the document.
La Rioja officials said they’ve engaged financial and legal advisers and want to kick start consultations with bondholders for an “amicable and consensual agreement in the shortest possible time frame.” Its 2028 bond traded near 56 cents on the dollar Monday, though it was above 58 cents earlier in February.
27 February 2024
Oil Holds Gain With Pockets of Strength Across Physical Markets
Oil steadied after a gain, with pockets of strength in physical markets supporting wider sentiment.
West Texas Intermediate traded below $78 a barrel after rising by 1.4% on Monday, with Brent closing above $82. There have been signs of recent buying activity from refineries in the world’s two largest economies, the US and China, which has pushed prices of US grades higher. Widely watched timespreads have also strengthened, signaling near-term tightness in the market.
Oil is grinding its way toward a second monthly advance, although it’s yet to break decisively out of its recent , narrow range. While tensions in the Middle East and OPEC+ supply curbs have supported crude prices, higher production from outside the group, including the US, has capped the gains. The market’s opposing drivers have prompted both Goldman Sachs Group Inc.and Bank of America Corp. to predict that rangebound trading will persist in the near term. Goldman Sachs sees a $20 band for crude centered on $70 a barrel, with muted volatility, while its rival expects oil to hold between $60 and $80.
27 February 2024
Shein Considers London IPO Amid US Resistance to Listing
Fast-fashion company Shein is considering the possibility of switching its initial public offering to London from New York because of hurdles to the listing in the US, according to people with knowledge of the matter.
Shein, which was founded in China but is now headquartered in Singapore, is in the early stages of exploring the London option as it has judged it unlikely that the US Securities and Exchange Commission will approve its IPO, the people said, asking not to be identified discussing confidential information.
Shein is still working on its application to list in the US as its preferred location, the people said. It would need to file a new overseas listing application with Chinese regulators if it decided to switch to London or elsewhere, they added. Other venues including Hong Kong or Singapore may also be considered, two of the people said. A representative for Shein declined to comment.
